Question Help Bubby-Cola spends $1 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it produces Feed manufacturing overhead costs $3 million per year. The plant, which is currently operating at only 65% of capacity, produced 25 milion units this year. Management plans to operate closer to full capacity next year, producing 30 million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead Read the requirements s Requirement 1. What is the current total product cost for the 25 milion units), including fra and variable costs? Determine the formula, then calculate the current total product cost for the 25 milion units) including fired and varietie . Total product costs - 25 milion 1 million milion Requirement 2. What is the current average produd cost per unit? Determine the formula, then calculate the current average product cost per unit (Enter your answer to the nearestent) Current average product cost per unit million milion - Requirement 3. What is the current fixed cost per unit? Determine the formula, then calculate the current foed cost per unit. (Enter your answer to the nearest cent) - Current fixed cost per unit million million - per unit Requirement 4. What is the forecasted total product cost next year for the 30 milion units), including fixed and variable costs? Determine the formula, then calculate the forecasted total product cost next year for the 30 milion units) Forecasted = = total product costs million million + million T e orecasted average product cost next year? Determine the formula, then calculate the forecasted average product cost per unit. (Enter your answer to the nearest cont) Forecasted average = product cost per unit million million = perunt Requirement 6. What is the forecasted fixed cost per unit? Determine the formula, then calculate the forecasted food cost per unit. (Enter your answer to the nearest cant) - Forecasted foxed cost per unit million ! million per unit Requirement 7. Why does the average product cost decrease as production increases? The average product cost decreases as production volume increases because the company is efficiently, so the average cost of making each unit decreases. over 5 milion more units. The company will be operating Requirements 1. What is the current total product cost (for the 25 million units), including fixed and variable costs? 2. What is the current average product cost per unit? 3. What is the current fixed cost per unit? 4. What is the forecasted total product cost next year (for the 30 million units), including fixed and variable costs? 5. What is the forecasted average product cost next year? 6. What is the forecasted fixed cost per unit? 7. Why does the average product cost decrease as production increases? Print Done re un
