Compute the unit manufacturing cost for the daytime shift

Reference no: EM13235527

Venus Computer can produce 23,000 personal computersa year on its daytime shift. The fixed manufacturing costs per yearare $2million and the total labor cost is $9,109,000. To increaseits production to 46,000 computers per year, Venus is consideringadding a second shift. The Unit labor cost for the second shiftwould be 25% higher then the day shift, but the total fixedmanufacturing costs would increase only to $2.4 million from $2million.

(a) Compute the unit manufacturing cost for the daytime shift.

(b) would adding a second shift increase or decrease the unitmanufacturing cost at the plant?

Reference no: EM13235527

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