the machine to produce the units cost $400,000   the monthly operating and maintenance cost is: $1,000   cost of material and labour is: $60/unit   defective unit at a cost: $60/unit   nominal production of: 2,800 units/month   nominal defect rate: 3%   MARR is 10% compounded monthly   period of time 5 years

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 6PA: Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A...
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i need to find the average cost per unit?

 

if :

 

the machine to produce the units cost $400,000

 

the monthly operating and maintenance cost is: $1,000

 

cost of material and labour is: $60/unit

 

defective unit at a cost: $60/unit

 

nominal production of: 2,800 units/month

 

nominal defect rate: 3%

 

MARR is 10% compounded monthly

 

period of time 5 years

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