Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.

The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.
Required:
a.What is the total cost of producing 2,000 glasses?
b.What is the total cost of producing 1,600 glasses?
c.What is the per unit cost when producing 1,500 glasses?

Question

Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.
  
The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.
Required:
a.What is the total cost of producing 2,000 glasses?
b.What is the total cost of producing 1,600 glasses?
c.What is the per unit cost when producing 1,500 glasses?

Quizplus · Accepted Answer

The Answer of Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data apply for sales to regular customers and is based on 1,000 units produced.
  
The plant has capacity for 3,000 glasses. Plant supervisor's salary is $15,000.
Required:
a.What is the total cost of producing 2,000 glasses?
b.What is the total cost of producing 1,600 glasses?
c.What is the per unit cost when producing 1,500 glasses?

Denver City Manufacturing Currently Produces 2,000 Glasses Per Month