Listed here are the total costs associated with the production of 10,000 Blu-ray Discs (BDs) manufactured by New Age. The BDs sell for $15 each.
1. Classify each cost and its amount as
(a) Either fixed or variable and
(b) Either product or period.
2. Compute the manufacturing cost per BD.
3. Assume that 12,000 BDs are produced in the next month. What do you predict will be the total cost of plastic for the BDs and the per unit cost of the plastic for the BDs? Explain.
4. Assume that 12,000 BDs are produced in the next month. What do you predict will be the total cost of factory rent and the per unit cost of the factory rent?Explain.
This question was answered on: Jul 11, 2017
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