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Sweetum Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 5,000 jaw-breakers per month.
Sweetum Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 5,000 jaw-breakers per month. The machine costs 5,000 and is depreciated using straight line depreciation over ten years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total 800 per month. Sweetum currently makes and sells 3,200 jaw-breakers per month. Sweetum buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 20 cents per jaw-breaker. Next year Sweetum expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same. Requirements 1. What is Sweetum's current annual relevant range of output? 2. What is Sweetum's current annual fixed manufacturing cost within the relevant range? What is the variable manufacturing cost? 3. What will Sweetum's relevant range of output be next year? How, if at all, will fixed and variable manufacturing costs change next year? Assume that if it needs to Sweetum could buy an identical machine at the same cost as the one it already has. Requirement 1. What is Sweetum's current annual relevant range of output? (Complete the necessary drop down.) Sweetum's current annual relevant range of output is mansacturing overthead costs will remain the same. Requirements 1. What is Sweenim's current anchial relevant nagie of output? 2. What is Sweetumis currect annual fied marutacturing cost within the relovant ranpe? What is the variable manutacturing coet? Requirement 1. What is Smeenum's current annual relevant range of output? (Complete the necestiary drop down)? Sweetum's currert annual relevart range of output is mansacturing overthead costs will remain the same. Requirements 1. What is Sweenim's current anchial relevant nagie of output? 2. What is Sweetumis currect annual fied marutacturing cost within the relovant ranpe? What is the variable manutacturing coet? Requirement 1. What is Smeenum's current annual relevant range of output? (Complete the necestiary drop down)? Sweetum's currert annual relevart range of output is
Sweetum Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 5,000 jaw-breakers per month. The machine costs 5,000 and is depreciated using straight line depreciation over ten years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total 800 per month. Sweetum currently makes and sells 3,200 jaw-breakers per month. Sweetum buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 20 cents per jaw-breaker. Next year Sweetum expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same. Requirements 1. What is Sweetum's current annual relevant range of output? 2. What is Sweetum's current annual fixed manufacturing cost within the relevant range? What is the variable manufacturing cost? 3. What will Sweetum's relevant range of output be next year? How, if at all, will fixed and variable manufacturing costs change next year? Assume that if it needs to Sweetum could buy an identical machine at the same cost as the one it already has. Requirement 1. What is Sweetum's current annual relevant range of output? (Complete the necessary drop down.) Sweetum's current annual relevant range of output is
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