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Yumball Candies manufactures jawbreaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4 , 5 0
Yumball Candies manufactures jawbreaker candies in a fully automated process. The machine that produces candies was purchased recently and can make jawbreakers per month. The machine costs $ and is depreciated using straightline depreciation over years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $ per month. Yumball currently makes and sells jawbreakers per month. Yumball buys just enough materials each month to make the jawbreakers it needs to sell. Materials cost $ per jawbreaker. Next year Yumball expects demand to increase by At this volume of materials purchased, it will get a discount on price. Rent and other fixed manufacturing overhead costs will remain the same.
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Requirement What is Yumball's current annual relevant range of output?
Yumball's current annual relevant range of output is to jawbreakers
Requirement What is Yumball's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost?
Yumball's current annual fixed manufacturing costs
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