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The total cost per unit to manufacture 4,000 flanges is? $___ Gavin's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and
The total cost per unit to manufacture 4,000 flanges is? $___
Gavin's Glassworks makes glass flanges for scientific use. Materials cost $3 per flange, and the glass blowers are paid a wage rate of $25 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $29,000 per period. Period (non-manufacturing) costs associated with flanges are $13,000 per period, and are fixed. Requirements 1. Fred's Flasks, sells flanges for $10.00 each. Can Gavin sell below Fred's price and still make a profit on the flanges? Assume Gavin produces and sells 4,000 flanges this period. 2. How would your answer to requirement 1 differ if Gavin's Glassworks made and sold 10,000 flanges this period? Why? What does this indicate about the use of unit cost in decision making? Requirement 1. Fred's Flasks, sells flanges for $10.00 each. Can Gavin sell below Fred's price and still make a profit on the flanges? Assume Gavin produces and sells 4,000 flanges this period
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