A Tyre company currently produces 2,000 tyres per month. The following per unit data apply...
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Accounting
A Tyre company currently produces 2,000 tyres per month. The following per unit data apply for sales to regular customers:
Direct materials | $25 |
Direct labour | $3 |
Variable manufacturing overhead | $5 |
Fixed manufacturing overhead | $12 |
Total manufacturing costs | $45 |
The plant has capacity for 8,000 tyres and is considering expanding production to 5,000 tyres. Compute the total cost of producing 5,000 tyres and enter the answer below.
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