Xyz company produces models x y z model x incurs 50000 in

Reference no: EM13394896

XYZ Company produces Models X, Y, Z. Model X incurs $50,000 in labor costs and $60,000 in direct material costs. XYZ Company also incurs fixed costs for rent in the amount of $500,000, quality control in the amount of $1 million, and human resources in the amount of $600,000.The company allocates rent based on the space allocated to each product line.The total amount of occupied space is 500,000 square feet of which Model X occupies 50,000 square feet.The company allocates quality control expenses based upon the number of inspections.The company had total of 200,000 inspections of which Model X has had 10,000 inspections.The company allocates human resource expenses based upon the number of employees in each department.The company has 30 employes of which 5 employees are employed for the Model X product line.The company expects to produce 100, 000 units of Model X.What is the cost per unit to produce Model X given the company's variable and fixed costs?

Reference no: EM13394896

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