Question
Question#1. Sweetness, Inc. budgeted production for 12,000 cases of candy during May. The cost per case at that level is $20 (DM $7; DL $8,
Question#1. Sweetness, Inc. budgeted production for 12,000 cases of candy during May. The cost per case at that level is $20 (DM $7; DL $8, MOH $5 (VMOH $3 and FMOH $2). Assuming the same cost structure, what would the unit cost be if 10,000 cases were produced? (Use two decimals.)
Question#2. Sweetness, Inc. budgeted production for 12,000 cases of candy during May. The cost per case at that level is $20 (DM $7; DL $8, MOH $5 (VMOH $3 and FMOH $2). Assuming the same cost structure, what would the unit cost be if 20,000 cases were produced? (Use two decimals.)
PS. Answers 20.4 and 19.2 were incorrect!
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