BarGraphs Corp. had capacity to produce4,000 units of L3 using40,000 kg of direct materials. BarGraphs...
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BarGraphs Corp. had capacity to produce4,000 units of L3 using40,000 kg of direct materials. BarGraphs produced3,850 units of L3 by processing35,500 kg of direct materials. Conversion cost per unit is$7.00. BarGraphs can add or reduce manufacturing capacity in increments of4,500 kgs.
What would be the cost savings if BarGraphs decides to reduce manufacturing capacity by4,500 kgs?
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