Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,800 and the total manufacturing overhead cost is...


Company XYZ is currently producing and selling 100 units. At this level, the<br>total direct materials cost is $500, the total direct labor cost is $1,800 and<br>the total manufacturing overhead cost is $1,260, which includes $800 fixed<br>manufacturing overhead cost. The company's total selling and<br>administrative expenses are $2,800, which include $1,500 fixed selling and<br>Finis<br>administrative costs. Assume that the company wishes to increase the<br>number of units produced and sold to 102 units, what would be the<br>incremental cost? (rounded to nearest ($) value)<br>O a.<br>41<br>O b. 55<br>O c. 81<br>O d. None of the given answers<br>O e. 71<br>DAGE<br>

Extracted text: Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,800 and the total manufacturing overhead cost is $1,260, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,800, which include $1,500 fixed selling and Finis administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) O a. 41 O b. 55 O c. 81 O d. None of the given answers O e. 71 DAGE

Jun 11, 2022
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