The LCC for a product that the manufacturing materials costs are $20k, process and system costs are $10k, operating costs during 10 years $25k, and the disposal costs $5k, is: O a. $60k O b. $55K O c. $45k O d. $50k

The LCC for a product that the manufacturing materials costs are $20k, process and system costs are $10k, operating costs during 10 years $25k, and the disposal costs $5k, is: O a. $60k O b. $55K O c. $45k O d. $50k

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter5: Activity-based Costing And Management

Section: Chapter Questions

Problem 16MCQ: Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000...

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Question

The LCC for a product that the manufacturing materials costs are $20k, process and system costs are $10k,
operating costs during 10 years $25k, and the disposal costs $5k, is:
O a. $60k
O b. $55K
O c. $45k
O d. $50k

The total cost when the demand that is maximized profit is $1800, fixed cost (CF) = $5500, Cv = $15.5:
O a. TC=$550
O b. TC=$5515.5
O c. TC=$33400
O d. TC=$15.5

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