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Unformatted text preview: (c) For the two noted cost items, how much was variable cost per unit and how much was fixed cost per unit? (d) Repeat requirements (b) and (c), assuming production was only 20,000 units (and wire usage was reduced proportionately). (e) For the following year, if the company acquired an additional machine to enable production of 40,000 total units, what would happen to the expected total and per unit variable and fixed cost? (f) If the company experiences significant growth, and finds it necessary to continue to add additional machines, how would the machine cost be characterized (hint: fixed, variable, or something else)? In theory, at what production level(s) would per unit cost be minimized?...
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- Spring '11