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Norm Inc. is analyzing its 2021 results for one of its products, Macz. A competitor to Macz has released partial data on its competing product.
Norm Inc. is analyzing its 2021 results for one of its products, Macz. A competitor to Macz has released partial data on its competing product. From that data Norm Inc. estimated that the competitor's production costs can be estimated as fixed costs of $75,000 annually plus variable costs equal to 25% of sales revenues. Norm Inc. calculates that the production costs of Macz are annual fixed costs of $52,000 and variable costs equal to 347 of revenues. At a sales volume of $400,000 annually what is the difference in cost between the two products? Calculate your answer as the cost to Norm Inc. minus the cost to the competitor. A positive number indicates Norm Inc has the more costly technology. Round your solution to the nearest $1.00. QUESTION 5 Norm Inc manufactured and sold 48,000 units of its Macz product in FY2021. A regression analysis of the monthly production costs for that year resulted in the following estimates (assume all reported coefficients are statistically significant): Variable Coefficient Intercept 4,100 Labor Hours Used 40.5 # of Inspections 225 What is the expected production cost for a month where there are 1800 labor hours used and 300 inspections performed? Round your solution to the nearest $1.00
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