Pietro Frozen Foods, Inc., produces frozen pizzas. For next year, Pietropredicts that 50,000 units will be produced, with the following totalcosts:
Required:1. Calculate the prime cost per unit.2. Calculate the conversion cost per unit.3. Calculate the total variable cost per unit.4. Calculate the total product (manufacturing) cost per unit5. What if the number of units increased to 55,000 and all unitvariable costs stayed the same? Explain what the impact would beon the following costs: total direct materials, total direct labor,total variable overhead, total fixed overhead, unit prime cost, andunit conversion cost. What would the product cost per unit be inthis case?
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