Reference no: EM132834389

Question - Electro Technologies, Inc. has just developed a technology to produce KKPITK, a cement-substitute, out of garbage. When a ton of garbage has been collected, it is processed in the machine and 100 lbs. of liquid form are normally extracted and dried to produce a hardened construction material, KKPITK. The following data were developed relative to this new technology:

Chemicals P2,000 per ton

Direct Labor 200 per ton

Electricity and Water 100 per ton

Supervisors' Salaries 500 per ton

Depreciation Expense 120,000 per month

Other Factory Costs 200,000 per month

The company is expected to process 200 tons of garbage a month. The supervisors are expected to remain in numbers regardless of fluctuations in the level of tons of garbage processed. The company's capacity is 500 tons of garbage a month.

Required -

1. Compute the total unit variable cost per pound.

2. Compute the total fixed costs per month.

3. How much would be total variable costs and total fixed costs if the company processes 300 tons in a month? 400 tons in a month? 500 tons in a month?

4. How much would be the total costs and total unit costs per pound if the company processes 300 tons in a month? 400 tons in a month? 500 tons in a month?