Grand minus Cola spends $ 1 on direct materials, direct labor, and variable manufacturing overhead...
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Grand minus Cola spends $ on direct materials, direct labor, and variable manufacturing overhead for every unitpack of soda it produces. Fixed manufacturing overhead costs $ million per year. The plant, which is currently operating at only of capacity, produced million units this year. Management plans to operate closer to full capacity next year, producing million units. Management doesn't anticipate any changes in the prices it pays for materials, labor, and manufacturing overhead.
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Requirement What is the current total product costfor the million units including fixed and variable costs?
Determine the formula, then calculate the current total product costfor the million units including fixed and variable costs.
Total product costs
million
million
million
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