Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete) Direct Materials cost / each volume of concrete Manufacturing processing capcaity (volume of concrete) Conversion cost (all manufacturing cost except direct materials) Conversion cost per unit of capacity R&D employees R&D costs 20,000 2,400 2,500,000 11.50 3,000,000 18,000,000 6.00 5 500.000 22,000 2,200 2,300,000 12.00 2,900,000 17,000,000 5.86 100.000

Units of concrete panels produced and sold Sellling price Direct Materials (volume of concrete) Direct Materials cost / each volume of concrete Manufacturing processing capcaity (volume of concrete) Conversion cost (all manufacturing cost except direct materials) Conversion cost per unit of capacity R&D employees R&D costs 20,000 2,400 2,500,000 11.50 3,000,000 18,000,000 6.00 5 500.000 22,000 2,200 2,300,000 12.00 2,900,000 17,000,000 5.86 100.000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 10E

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