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Unformatted text preview: $288,000 Product Testing = 90 * 9000 = $810,000 Machine Related = 75 * 30,000 = $2,250,000 Total = $3,516,000 Overhead per unit = $3,516,000 / 120,000 = $29.30 Cost Per Unit = $29.30 _ $8 labor per unit + $112 Materials = $149.30 3. Declining Factors for Companys Declining profits The deluxe model costs are more than two times the cost to make it under the regular model at about %224 of the rate under the regular. The company will be losing money if they are going to be charging less than $224 of the cost of the regular. That is possibility that would explain the Companys declining profits....
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This note was uploaded on 02/25/2010 for the course MAT 443 taught by Professor Roberts during the Winter '10 term at University of Arizona- Tucson.
- Winter '10