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Q 8 . Gayle's Glassworks makes glass vases. Materials cost $ 1 per vase, and the glass blowers are paid a wage rate of $

Q8. Gayle's Glassworks makes glass vases. Materials cost $1 per vase, and the glass blowers are paid a wage rate of $28 per hour. A glass blower blows 10 vases per hour. Fixed manufacturing costs for vases are $28,000 per period. Period (nonmanufacturing) costs associated with vases are $10,000 per period and are fixed.
a) Graph the fixed, variable, and total manufacturing cost for vases
b) Assume Gayle's Glassworks manufactures and sells 5,000 vases in this period. Its competitor, Flora's Flasks, sells vases for $10 each. Can Gayle sell below Flora's price and still make a profit on the vases?
c) How would your answer to requirement 2 differ if Gayle'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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