Last year Zephyr Company sold 9,000 units that cost $40,000 to produce. This cost included $3,000 in fixed computer resource cost, $10,000 in fixed labor cost, and communications resource cost at $3.00 per unit. Resource costs are expected to be the same next year. Zephyr expected to sell 18,000 units. The sales manager predicts that next year's cost will be $80,000.
Required:
Comment on the sales manager's cost prediction.

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The Answer of Last year Zephyr Company sold 9,000 units that cost $40,000 to produce. This cost included $3,000 in fixed computer resource cost, $10,000 in fixed labor cost, and communications resource cost at $3.00 per unit. Resource costs are expected to be the same next year. Zephyr expected to sell 18,000 units. The sales manager predicts that next year's cost will be $80,000.
Required:
Comment on the sales manager's cost prediction.

Last Year Zephyr Company Sold 9,000 Units That Cost $40,000