Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Toys Inc. manufacturers toy robots. Financial data for the manufacturing operations of Toys Inc. for the past year are provided in the table below. This
Toys Inc. manufacturers toy robots. Financial data for the manufacturing operations of Toys Inc. for the past year are provided in the table below. This data are also available in this excel worksheet: High low.xlsx Month Number of units Total costs ($) Jan 160 $ 17,200 Feb 310 $ 24,000 Mar 335 24,500 Apr 272 $ 22,800 May 165 $ 17,000 Jun 185 $ 17,900 Jul 300 $ 23,650 Aug 125 $ 15,300 Sep 370 $ 25,900 Oct 130 $ 15,600 Nov 290 23,750 Dec 232 $ 19,050 Normal manufacturing capacity of the factory is 250 units. When monthly demand exceeds normal capacity, Toys Inc. has been leasing a machine at a cost of $4,000 per month (the machine increases potential output to 400 units), and also receives a bulk discount on all raw materials purchases for monthly production. Using high-Low analysis, calculate the discount per unit that Toys Inc. receives when raw materials are purchased for more than 250 units in a month. Enter your answer to 2 decimal places
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started