[shariarmohammad]

Production costs per unit
$
Direct material
3.00
Direct labour
2.50
Direct machining
5.05
Set-up
0.45
Inspection and testing
4.30

Total non-production costs
$000
Design (salaries and technology)
2,500
Marketing consultants
1,700
Distribution
1,400

Add all production costs to arrive at 15.3
Add all non prod. cost to arrive at 16 (5600000/350000)
Total unit cost is therefore 31.3

[shariarmohammad]

this seems to b a question from the kaplan text book, i did it a few days back. Although a few areas did seem confusing at first but i figured it out eventually. you can ask me where you have doubts, i will try to help you out

[Author]

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