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Ratiff Appliances Company makes a household appliance with model number RMi6. The goal for 2020 is to reduce direct materials usage per unit No defective

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Ratiff Appliances Company makes a household appliance with model number RMi6. The goal for 2020 is to reduce direct materials usage per unit No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of RM16 units that can be produced. The industry market size for appliances increased 10% from 2019 to 2020 . The following additional data are avallable for 2019 and 2020 Compute the flexible / variable cost effect of the growth component and indicate favorable or unfavorable

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