Question

A company would like to produce 1000 products per week for 30 weeks. The Direct Material Cost for the raw materials used in the product is $1.50 per product. After producing 100 products, the company must stop production to replace a filter on the machine (the filter is replaced after producing every 100 products). The filter costs $50.00. What is the Total Cost Per Product

Answer 1

Answer:

$60000

Explanation:

Their are 1000 products to produce per week for 30 weeks.

Total of product = 30* 1000

= 30000

For every 100 products, the filter needs to be changed, and it cost $50.

The number of filter used is

= 30000/100

= 300.

So the product cost $1.5

Total cost =

($1.5*30000)+($50*300)

= $45000+$15000

= $60000