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Please answer the following questions for a thumbs up. Wolverine, Inc. manufactures ink that can only be detected by black light. The company incurs $48,000
Please answer the following questions for a thumbs up.
Wolverine, Inc. manufactures ink that can only be detected by black light. The company incurs $48,000 in monthly depreciation costs on its manufacturing equipment as well as monthly advertising costs of $6,000 to place ads in newspapers and on the radio. Each container of ink requires materials and manufacturing overhead resources. On average the company uses 68,000 pounds of material to manufacture 22,000 containers of ink per month. Each pound of material costs $4.25. Direct labor costs on a per container basis are $1.50. The company incurs $35,000 in manufacturing overhead to produce 22,000 containers of ink per month. Required: a. Create the total cost formula (equation) for the monthly cost of the ink for Wolverine, Inc. based on the above information. b. If the company plans to manufacture 65,000 containers of ink next month, what is the expected fixed cost? c. What is the total variable cost at 65,000 units? d. What is the total cost at 65,000 units
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