Answer:
A. $29.85
B. $28.63
Explanation:
Manufacturing costs are costs that are incurred when creating or producing a product. It includes cost of machinery, cost of operating the machinery
A. manufacturing cost per good product
=[tex]\frac{27*150 + 8(15)}{139} =\frac{4170}{139}[/tex]
= $29.85 per cabinet when quality is 83%
B. manufacturing cost per product if the percentage of good-quality cabinets is increased from 83% to 90%.
=[tex]\frac{27*150 + 8(9)}{144} =\frac{4122}{144}[/tex]
=$28.63 per cabinet when quality is increased to 90%
