Value - Cola spends $3 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) produces. Fixed manufacturing overhead costs $5 million per year. The plant, which is currently operating at only 85% of capacity, produced 25 million units this year. Management plans to operate closer to full capacity next year, producing 30 million units Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead. Read the requirements Requirement 1. What is the current total product cost for the 25 million units), including fixed and variable costs? Determine the formula, then calculate the current total product cost for the 25 milion units), including fixed and variable costs - Total product costs million mon million Requirement 2. What is the current average product cost per unit? Determine the formulathen calculate the current average product cost per unit. (Enter your answer to the nearest cent.) Current average Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 2. What is the current average product cost per unit? Determine the formula, then calculate the current average product cost per unit. (Enter your answer to the nearest cant) Current average - product cost per unit million 1 million per unit Requirement 3. What is the current fixed cost per unit? Determine the formula, then calculate the current feed cost per unit. (Enter your newer to the nearest cent) 1 Current fed cost per un Requirement 3. What is the current fixed cost per unit? Determine the formula, then calculate the current fixed cost per unit. (Enter your answer to the nearest cent.) - Current fixed cost per unit milion million - per unit Requirement 4. What is the forecasted total product cost next year for the 30 million units), including fixed and variable costs? Determine the formula then calculate the forecasted total product cost next year for the 30 million units) - total product costs Value - Cola spends $3 on direct materials, direct labor, and variable manufacturing overhead for every unit (12-pack of soda) it produces. Fixed manufacturing overhead costs $6 million per year. The plant, which is currently operating at only 85% of capacity, produced 25 million units this year. Management plans to operate closer to full capacity next year, producing 30 million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead. Read the requirements Requirement 5. What is the forecasted average product cost next year? Determine the formula, then calculate the forecasted average product cost per unit. (Enter your answer to the nearest cent.) Forecasted average - product cost per unit million I million per unit Requirement 6. What is the forecasted fixed cost per unit? Determine the formula, then calculate the forecasted fixed cost per unit (Enter your answer to the nearest cent) Requirement & What is the forecasted feed cost per unit? Determine the formula, then calculate the forecasted fixed cost per unit. (Enter your answer to the nearest cent.) - Forecasted fixed cost per unit million million per unit Requirement 7. Why does the average product cost decrease as production increase? The average product cost decreases as production volume increases because the companyia city, so the average cost of making each unit decreases over 5 million more units. The company will be operating
