Answer:
$63
Step-by-step explanation:
Given:
Total units of cell phones produced = 12,000
Prime cost = $400,000
Number of machine hours = 2,500
Number of setup hours = 1,800
Cost per machine hour = $50
Cost per setup hour = $130
Now, total cost of all cell phones = Prime cost + machine hours cost + setup hours cost
So, Total cost = $400,000 + (2500 × $50) + (1800 × $130)
= $400,000 + $125,000 + $234,000
= $759,000
Now, total cost of 12,000 units = $759,000
∴ Cost of 1 unit = Total cost ÷ Number of units
⇒ Cost of 1 unit = [tex]\frac{\$759000}{12000}=\approx \$63[/tex]
Therefore, the unit cost of a cell phone is approximately 63 dollars.
