Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computerized Accounting With Quickbooks 2018

Authors: James B. Rosa, Kathleen Villani

1st Edition

0763882674, 9780763882679

More Books

Students also viewed these Accounting questions

Question

Explain the employee benefits that are required by law.

Answered: 1 week ago

Question

List the types of incentive plans.

Answered: 1 week ago