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period. Period (nonmanufacturing) costs associated with flanges are $17,000 per period and are fixed. Read the requirements. Requirement 1. Select the graph that shows fixed,
period. Period (nonmanufacturing) costs associated with flanges are $17,000 per period and are fixed. Read the requirements. Requirement 1. Select the graph that shows fixed, variable, and total manufacturing cost for flanges, using units (number of flanges) on the x-axis. (Enlarge each graph before selecting your answer.) C 1 ; total cost per unit to two decimal places.) Begin by determining the formula used to calculate the total cost per unit. =Totalcostperunit The total cost per unit when manufacturing 5,000 flanges is ; therefore, they sell below Freda's price and still make a profit. decimal places.) The total cost per unit when manufacturing 10,000 flanges would be With production and sales at this level, the company make a profit if the selling price is below $11.00 each. Managers must be cautious using unit costs for decision making because remain the same regardless of the number of units produced. Requirements 1. Select the graph that shows fixed, variable, and total manufacturing cost for flanges, using units (number of flanges) on the x-axis. 2. Assume Gavin's Glassworks manufactures and sells 5,000 flanges this period. Its competitor, Freda's Flasks, sells flanges for $11.00 each. Can Gavin sell below Flora's price and still make a profit on the flanges? 3. How would your answer to requirement 2 differ if Gavin's Glassworks made and sold 10,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making
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