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Axle and Wheel Manufacturing Currently Produces 1,000 Axles Per Month

Question 9

Essay

Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:
Axle and Wheel Manufacturing currently produces 1,000 axles per month. The following per unit data apply for sales to regular customers:    The plant has capacity for 2,000 axles. Required: a. What is the total cost of producing 1,000 axles? b. What is the total cost of producing 1,500 axles? c. What is the per unit cost when producing 1,500 axles? The plant has capacity for 2,000 axles.
Required:
a. What is the total cost of producing 1,000 axles?
b. What is the total cost of producing 1,500 axles?
c. What is the per unit cost when producing 1,500 axles?

Correct Answer:

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a. [($200 + $30 + $60)× 1,000 ...

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