A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor is $500,000. If it is to increase production by 5,000 and that requires and additional labor and raw material expense of $100,000, what is the best estimate of costs of the increase production? a. $5b. $10c. $20d. $50e. $100

Question

Business

Zachery Hobbs

1 October, 04:24

A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor is $500,000. If it is to increase production by 5,000 and that requires and additional labor and raw material expense of $100,000, what is the best estimate of costs of the increase production? a. $5b. $10c. $20d. $50e. $100

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Answers (1)

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Emilee Gibbs · Answer 1

Cost per unit = $50

Explanation:

Giving the following information:

A small clothing firm currently produces 50,000 shirts and blouses per month. The cost of its factory, raw materials, and labor is $500,000.

If it is to increase production by 5,000 and that requires additional labor and raw material expense of $100,000.

Cost per unit = Total cost/Q=100000/5000 = $50