XYZ Company produces Models X, Y, Z. Model X incurs $50,000 in labor costs and $60,000 in direct material costs. XYZ Company also incurs fixed costs for rent in the amount of $500,000, quality control in the amount of $1 million, and human resources in the amount of $600,000. The company allocates rent based on the space allocated to each product line. The total amount of occupied space is 500,000 square feet of which Model X occupies 50,000 square feet. The company allocates quality control expenses based upon the number of inspections.  The company had total of 200,000 inspections of which Model X has had 10,000 inspections.  The company allocates human resource expenses based upon the number of employees in each department. The company has 30 employes of which 5 employees are employed for the Model X product line.  The company expects to produce 100, 000 units of Model X. What is the cost per unit to produce Model X given the company's variable and fixed costs?

    • 10 years ago
    PERFECT ANSWER .
    NOT RATED

    Purchase the answer to view it

    blurred-text