Question
San Diego Sheet Metal, Inc. incurs a variable cost of $40 per pound for raw material...
San Diego Sheet Metal, Inc. incurs a variable cost of $40 per pound for raw material to produce a special alloy used in manufacturing aircraft.
Required:
In the table below, show the unit cost and total cost of raw material at the following production levels: 1 pound, 10 pounds, and 1,000 pounds.
Production Level in pounds Unit Cost Total Cost per pound per pound per pound 1,000
Answers
B A C D E Production Levels in pounds Unit Cost Total Cost 1 $ 40 per pound $ 40 (1 pound * $40) 10 $ 40 per pound $ 400 (10 pound * $40) 1,000 $ 40 per pound $ 40,000 (1,000 pound * $40) AwN-
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