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e unit manufacturing cost for the day shift?

e unit manufacturing cost for the day shift?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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ePhone Incorporated can manufacture 23,000 units of ePhoneY smartphone annually during its day shift. Currently, the fixed manufacturing cost per year is P100,000,000 while the total labor cost is P455,450,000. The founders are deciding to double its current production by adding another shift. The unit labor cost for the additional shift is 25% more than the day shift but the total fixed manufacturing cost will only be P120,000,000. What is the unit manufacturing cost for the day shift?
Transcribed Image Text:ePhone Incorporated can manufacture 23,000 units of ePhoneY smartphone annually during its day shift. Currently, the fixed manufacturing cost per year is P100,000,000 while the total labor cost is P455,450,000. The founders are deciding to double its current production by adding another shift. The unit labor cost for the additional shift is 25% more than the day shift but the total fixed manufacturing cost will only be P120,000,000. What is the unit manufacturing cost for the day shift?
Would adding another shift increase or decrease the unit manufacturing cost of the company?
Transcribed Image Text:Would adding another shift increase or decrease the unit manufacturing cost of the company?
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