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Cost accounting

Please see the attached files for complete questions.

Materials cost $1 per flange, and the glass blowers are paid a wage rate of $20 per hour. A glass blower blows 10 flanges per hour. Fixed manufacturing costs for flanges are $20,000 per period. Period (non-manufacturing) costs associated with flanges are $10,000 per period, and are fixed.

1. Graph the fixed, variable and total manufacturing cost for flanges, using units (number of flanges) on the x-axis.

2. Assume they manufacture and sell 5,000 flanges this period. Their competitor sells flanges for $8.25 each. Can you sell below the competitor's price and still make a profit?

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Solution Summary

Excel file contains graph the fixed, variable and total manufacturing cost for flanges, using units (number of flanges) on the x-axis and computation of total cost and profit at sales level of 5000 flanges.

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