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James Tire Manufacturing Company currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers:

Direct materials

$20

Direct manufacturing labor

$3

Variable manufacturing overhead

$6

Fixed manufacturing overhead

$10

Total manufacturing costs

$39

The plant has capacity for 3,000 tires per month. James is considering expanding production to 2,500 tires. Compute total manufacturing cost per unit of tire if production is increased to 2,500 tires per month?

If Logan increases sales volume by 8,000 units, what would be net profit (loss)? Example of Answer: 4000 or -4000 No comma, space, decimal point, or $ sign. Show loss with a minus " =. Answer: 45600 Question 5 0/8 points James Tire Manufacturing Company currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: The plant has capacity for 3,000 tires per month. James is considering expanding production to 2,500 tires. Compute total manufacturing cost per unit of tire if production is increased to 2,500 tires per month. Example of Answer: 25.00 or 25.15 (Two decimal points. No comma, space, or $ sign) Answer: 33.0 Question 6 0/8 points Alex Happy has developed a new product that he is considering the production and selling of it. To proceed with this project, Alex will be renting a small building to rent for $1,800 a month that will house production facilities. One major piece of equipment that will be used to manufacture the product will be rented for $750 a month. Alex purchased all of the other needed tools for $7,200 which will last for two years (depreciation will be $300 per month). Utility cost of building is expected to be $330 per month. Material costs to make the product are estimated at $12.00 per unit. Monthly

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