Answer:
Jamison's current total cost of making and selling 10 million cans of paint is $75,000,000 and the current cost per can of paint is $7.5
Explanation:
For computing the current total cost, we need to apply the formula which is shown below:
Total cost = Fixed cost + variable cost
where,
Fixed cost = $15,000,000
And, the variable cost = Annual production × variable cost per plant
= 10,000,000 × $6
= $60,000,000
Now put these values to the above formula
So, the value would equal to
= $15,000,000 + $60,000,000
= $75,000,000
Now the current cost per can of paint would be
= (Total cost) ÷ (Annual production)
= ($75,000,000) ÷ (10,000,000)
= $7.5 per can of paint
