Explore BrainMass

Explore BrainMass

    Total cost problem/cost per unit

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Company A plans to produce 300,000 units next year, the production budget is:
    Direct labor: 600,000
    Ingredients: 450,000
    packaging 150,000
    rent 225,000
    depreciation 80,000
    other fixed costs 55000

    Calculate the total cost and cost per unit if the unit production is changed to 315,000 units.

    © BrainMass Inc. brainmass.com October 9, 2019, 6:54 pm ad1c9bdddf

    Solution Preview

    The variable costs will change whereas the fixed costs will remain same.
    Direct labor: ...

    Solution Summary

    The expert calculates the total cost and cost per unit if the unit production.