Calculate the unit costs of wine production and sales

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Problem

Wine Output (750 Milliliter Bottles) 10,000 Bottles 15,000 Bottles 20,000 Bottles Variable production costs $37,000 $55,500 $74,000 Fixed production costs $100,000 $100,000 $100,000 Fixed selling and administrative costs $40,000 $40,000 $40,000 Total $177,000 $195,500 $214,000 Wine Sales Sales price per 750 milliliter bottle $18.00 $15.00 $12.00 1. Get the instant assignment help. Calculate the unit costs of wine production and sales at each level of output. At what level of output is the unit cost minimized?

Reference no: EM133920101

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