Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned: PV Thickness Quantity 1 10 mm 15 000 2 20 mm 30 000 3 30 mm 15 000 The total manufacturing cost is estimated at SEK 3,000,000. Calculate the cost of the different product variants using an equivalent calculation
Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned: PV Thickness Quantity 1 10 mm 15 000 2 20 mm 30 000 3 30 mm 15 000 The total manufacturing cost is estimated at SEK 3,000,000. Calculate the cost of the different product variants using an equivalent calculation
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints
Section: Chapter Questions
Problem 16E
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Nisse AB manufactures insulating materials of different thicknesses in the same production facility. The company manufactures three different product variants (PV) in thicknesses of 10 mm, 20 mm and 30 mm. For the coming years, the following production is planned:
PV Thickness Quantity
1 10 mm 15 000
2 20 mm 30 000
3 30 mm 15 000
The total
Calculate the cost of the different product variants using an equivalent calculation
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