(a)
The cost to produce each unit.
Answer to Problem 35P
The total cost per unit is,
Explanation of Solution
Given:
Production is,
The number of run required are
Cost per machine hour is,
Cost per set-ups is,
Cost per inspection hour is,
The material and labor cost per sundial is,
Calculation:
Indirect expenses are
Calculate the indirect expenses.
Calculate the material and labor cost.
Substitute
Calculate the machine cost.
Substitute
Calculate the total set-ups cost.
Substitute
Calculate the inspection cost.
Substitute
Calculate the total cost.
Substitute
Calculate the cost per unit.
Substitute
Conclusion:
Therefore, the total cost per unit is,
(b)
The unit sales
Answer to Problem 35P
The unit sales price is,
Explanation of Solution
Given:
The profit percentage is
Calculation:
Calculate the unit sale price.
Conclusion:
Therefore, the unit sales price is,
(c)
The total annual profit for the product.
Answer to Problem 35P
The total annual profit for the product is,
Explanation of Solution
Given:
The number of runs are,
Calculation:
Calculate the profit per unit.
Substitute
Calculate the total production in six runs.
Calculate the total profit.
Substitute
Conclusion:
Therefore, the total annual profit for the product is,
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Chapter 17 Solutions
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