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Midstate Containers ine. manufoctures cans for the canned food industry. The operatons manager of a can manufocturing operation wants to conduct a cost study investigating

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Midstate Containers ine. manufoctures cans for the canned food industry. The operatons manager of a can manufocturing operation wants to conduct a cost study investigating the relationship of tin content in the material (can stock) to the energy cost for enameling the cans. The enameling was necessary to prepare the cans for labeling. A higher percentage of tin content in the can stock increases the cost of material. The operations manager believed that a higher tin content in the can stock would reduee the amount of energy uied in enameling. During the analysis period, the amount of tin content in the steel can stock was increased for every month, from April to September. The following operabog reports were available from the controller: Differences in materials unit costs were entrely related to the amount of tin content, in sddition, inventery changes are negligible and are ignored in the andysis. Caiculate the materials cost per unit, energy cost per unit and total cost per unit for esch month, Round your answers to the nearest cent. Interpret your results. The calculatians reveal that the tin content and energy costs are X related. That is, as the materials cost increased due to higher tin content, the energy coats X by more. Thus, the recommendabon should be to X raw can atock with the tin content at the x per unit level, thas is the material that X the total production cost for this set of data. Additional data could be used to determine the optimal tin content, or the point where energy cost sevings fail to overcome add tional material costa

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