Sandford Company manufactures one product. Its variable manufacturing cost is $16 per unit; total fixed manufacturing cost is $600,000.

Required (show your work):

1.) Calculate Sandford's total manufacturing costs if it produces 10,000 units. ___________________

2.) What would be the total cost per unit (including both fixed and variable costs) assuming that Sandford produces 10,000 units?

2) ___________________________

3.) Calculate Sandford's total manufacturing costs if it produces 20,000 units. ___________________

4.) What would be the total cost per unit assuming that Sandford produces 20,000 units? __________________

5.) Compare your answers from parts 2 and 4. If the cost per unit is different at 10,000 units than at 20,000 units, explain why.