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Question 2 15 pts (15 POINTS TOTAL). Your costs to make 10,000 parts are provided below. You have the capacity to make an additional 2,000
Question 2 15 pts (15 POINTS TOTAL). Your costs to make 10,000 parts are provided below. You have the capacity to make an additional 2,000 parts for no additional increase in fixed costs. The desired profit is $810,000. Assuming you manufacture the 2,000 additional parts (for a total of 12,000 parts made), answer the following questions and and upload all work for this problem in Question 12. a. What is the unit material cost of the part? b. What is the total labor cost for 12,000 units? c. What is the total overhead fixed cost for 12,000 units? d. What is the revenue we must receive to cover costs and desired profit? e. What unit price must you charge based on the desired profit? Variable costs Labor $250,000 Materials $130,000 $80,000 Administrative Overhead $175,000 Fixed Costs Administrative $100,000 Overhead $200,000
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