What is the total cost of the product

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Problem - A product that a company manufactures requires 3 kg of material A costing $6.20 per kg and 4 kg of material B costing $5.60 per kg. The product requires 2 hours of labour at a cost of $7.40 per hour. The product is sold in packs of 10 and the packaging for 10 units costs $22. Fixed production costs are $60,000 per annum and selling, distribution and administration costs are $24,000 per annum. The company makes 15,000 units of the product each year. What is the total cost of the product?

a) $62.00

b) $63.60

c) $81.80

d) $83.40

Reference no: EM132917583

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