Question

What if 32,000 cell phones could be manufactured next year? Explain in words how that would affect the unit prime cost, the unit conversion cost, the unit variable product cost, and the unit total product cost.

Answer 1

If 32,000 cell phones could be manufactured next year, it would affect the unit prime cost, unit conversion cost, unit variable product cost, and unit total product cost.

Step-by-step explanation:

The unit prime cost is the direct cost of producing one unit of a product. If 32,000 cell phones could be manufactured next year, the unit prime cost would depend on the manufacturing costs associated with producing the cell phones. The unit conversion cost refers to the indirect costs related to converting raw materials into finished products. The unit variable product cost is the sum of the direct and indirect costs associated with manufacturing one unit of a product. The unit total product cost is the sum of the unit variable product cost and the fixed costs associated with manufacturing the cell phones.