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Could someone please let me know how they arrived at the estimated cost of 31.30?
Production costs per unit
$
Direct material
3.00
Direct labour
2.50
Direct machining
5.05
Set-up
0.45
Inspection and testing
4.30Total non-production costs
$000
Design (salaries and technology)
2,500
Marketing consultants
1,700
Distribution
1,400Add 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
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