mathxl.com Cost Accounting ACC 210-400 18Spring Brandon Perez 1 1/20/18 8:12 AM Homework: Exercise 2-23 Sa Score: 0 of 6 pts 1 of 1 (1 complete) HW Score: 0%, 0 of 6 E2-23 (similar to) Question Help Chocolate Brand Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,600 per month. The machine costs $10,000 and is depreciated using straight line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1,200 per month. Chocolate Brand currently makes and sells 3,900 jaw-breake per month. Chocolate Brand buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 10 cents per jaw-breaker. Next year Chocolate Brand expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same Requirements 1. What is Chocolate Brand's current annual relevant range of output? 2. What is Chocolate Brand's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost? 3. What will Chocolate Brand's relevant range of output be next year? How if at all, will total annual fixed and variable manufacturing costs change next year? Assume that if it needs to Chocolate Brand could buy an identical machine at the same cost as the one it already has