Exercise 3Costs for a month in which it produced 800 units. The production manager was asked toreview these costs and provide her best guess as to how they should be categorized.He responded with the following information:Total CostsVariable CostsFixed CostsMaterial used in ProductionOMR 420000420000Labour, used in Production214000100000114000(Assembly and supervisor)Production Facilities cost( rent11500090000250000„Insurance, Utilities,.)Total production cost749000610000139000Required:A. Describe the production costs in the equation form Y = f + vXB. Assume Company intends to produce 1200 units next month. Calculate totalproduction costs for the month.

Name: Exercise 3Costs for a month in which it produced 800 units. The produ
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Description: Exercise 3Costs for a month in which it produced 800 units. The production manager was asked toreview these costs and provide her best guess as to how they should be categorized.He responded with the following information:Total CostsVariable CostsFi

The total price paid for the resources used to manufacture a product or create a service, such as…

Business

Operations Management

Costs for a month in which it produced 800 units. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. He responded with the following information: Total Costs Variable Costs Fixed Costs Material used in Production Labour used in Production OMR 420000 420000 214000 100000 114000 (Assembly and supervisor) Production Facilities cost( rent 90000 250000 115000 „Insurance, Utilities,..) Total production cost 749000 610000 139000 Required: A. Describe the production costs in the equation form Y = f+ X B. Assume Company intends to produce 1200 units next month. Calculate total production costs for the month.

Costs for a month in which it produced 800 units. The production manager was asked to review these costs and provide her best guess as to how they should be categorized. He responded with the following information: Total Costs Variable Costs Fixed Costs Material used in Production Labour used in Production OMR 420000 420000 214000 100000 114000 (Assembly and supervisor) Production Facilities cost( rent 90000 250000 115000 „Insurance, Utilities,..) Total production cost 749000 610000 139000 Required: A. Describe the production costs in the equation form Y = f+ X B. Assume Company intends to produce 1200 units next month. Calculate total production costs for the month.

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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