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rk Test Geoffrey's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate
rk Test Geoffrey's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate of $22 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $22,000 per period. Period (nonmanufacturing) costs associated with flanges are $12,000 per period and are fixed Read the requirements 204000600x284000 Number of fange Mumber of fanges 000000000 Number of finge Requirement 2. Assume Geoffrey's Glassworks manufactures and sells 4,000 flanges this period. Its competitor, Faina's Flasks, sells flanges for $9.80 each. Can Geoffrey sell below Faina's price and still make a prefit on the flanges? (Round the total cost per unit to two decimal places.) Begin by determining the formula used to calculate the total cost per unit. The total cost per unit when manufacturing 4,000 flanges in Faina's price and still make a profit Total cost per unit therefore, they sell below Requirement 3. How would your answer to requirement 2 differ if Geoffrey's Glassworks made and sold 8,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making? (Round the total cost per unit to two decimal places) The total cost per unit when manufacturing 8,000 flanges would be With production and sales at this level, the company making because make a profit if the seling price is below $9.80 each. Managers must be cautious using unit costs for decision remain the same regardless of the number of units produced
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