Sandford Company Manufactures One Product

Essay

Sandford Company manufactures one product.Its variable manufacturing cost is $16 per unit; total fixed manufacturing cost is $600,000.
Required:
1.Calculate Sandford's total manufacturing costs if it produces 10,000 units.
2.What would be the total cost per unit (including both fixed and variable costs)assuming that Sandford produces 10,000 units?
3.Calculate Sandford's total manufacturing costs if it produces 20,000 units.
4.What would be the total cost per unit assuming that Sandford produces 20,000 units?
5.Compare your answers from parts 2 and 4.If the cost per unit is different at 10,000 units than at 20,000 units,explain why.