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You are to determine how many units the company should produce and sell to make the greatest amount of profit and determine the amount of
You are to determine how many units the company should produce and sell to make the greatest amount of profit and determine the amount of the profit. Production may be expanded by increasig fixed cost in blocks of 100,000 units, but the cost increases as we try to acquire more facilities. Unit price Sales 100 Direct Materials 25 Direct Labor 30 Variable Overhead 10 Fixed cost: Possible units cost First layer of units 100,000 1,500,000 Next layer 100,000 3,000,000 Subtotal 200,000 4,500,000 Next layer 100,000 3,000,000 Subtotal 300,000 7,500,000 In addition to the above, Direct Labor costs per unit will increase at the rate of 10% for each 10,000 units produced ABOVE the first layer. For units between 100,000 and 110,000 the Direct Labor will be (30*1.10) ir 33.00 per unit. For units bwtween 110,001 and 120,000 , the direct Labor wil be (33*1.10) or 36.30 per unit. Round to the nearest penny
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