Reference no: EM132960138
For 20,000 units, Total Fixed Cost of a Product is $3.335,000, Total Variable Cost is 6,420,000, and Total cost is 9,755,000. For 30,000 units, Total cost is $12,965,000. For 40,000 units, Total cost is $16,175,000. For 50,000 units, Total cost is $19,385,000.
Problem a. Typically, is there price efficiency (savings) in bulk production?
Problem b. Is there increased price efficiency as the production in units increases? Why?
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