Acme computers produces 23,000 personal computers per year using its daytime shi

Question

Acme computers produces 23,000 personal computers per year using its daytime shift. The fixed costs per year to produce the computers is $2,000,000. The total labor costs are $9,109,000. Acme would like to increase their output to 49,000 computers by adding a second shift. They estimate that the cost to add another shift will have a 25% higher labor cost than the day shift. Total fixed costs would only increase to $2,400,000. What is Acmes per unit cost for the new shift.

The answer is $512.45

Please show work

Explanation / Answer

Total Cost of 49000 Unit Day Shift Labour cost 9109000 Night Shift Labour Cost (25% of 9109000 + 9109000 11386250 Day Shift Fixed cost 2000000 Night Shift Fixed cost 2400000 Total Cost 24895250 Per Unit Cost = 24895250/49000 Per Unit Cost =                            508.07 I think 512.45 not possiable so the answer is $508.07 per unit cost

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