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2. A business produces one product which requires the following inputs:
Direct Materials 6 kg at $ 4,80 per kg
Direct labour 4 hour at $7 per hour
Building cost $18.000 per period
Leased machine $600 for every 600 units (each machine has a capacity of 600 units)
Store Cost $3.000 per period plus $3 per unit
a. What is the total cost of production and the cost per unit at each of the following production levels: (20 points) -1000 units -2000 units
b. Explain why the cost per unit is different at each level of production (10 points).
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