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The Following Cost Formula Relates to Last Year's Operations at Lemine

Question 27

Multiple Choice

The following cost formula relates to last year's operations at Lemine Manufacturing Corporation:
Y = $84,000 + $60.00X
In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing costs. Y is the total cost and X is the number of units produced and sold.
-If Lemine produces and sells 7,000 units,what is the unit product cost under each of the following methods? The following cost formula relates to last year's operations at Lemine Manufacturing Corporation: Y = $84,000 + $60.00X In the formula above, 75% of the fixed cost and 90% of the variable cost are manufacturing costs. Y is the total cost and X is the number of units produced and sold. -If Lemine produces and sells 7,000 units,what is the unit product cost under each of the following methods? A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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