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Answer the Following Questions Using the Information Below:
Axle and Wheel

question 292

Multiple Choice

Answer the following questions using the information below:
Axle and Wheel Manufacturing currently produces 1000 axles per month.The following per unit data apply for sales to regular customers:
 Direct materials $30 Direct manufacturing labour 5 Variable manufacturing overhead 10 Fixed manufacturing overhead 40 Total manufacturing costs $85\begin{array}{lr}\text { Direct materials } & \$ 30 \\\text { Direct manufacturing labour } & 5 \\\text { Variable manufacturing overhead } & 10 \\\text { Fixed manufacturing overhead } & \underline{40} \\{\text { Total manufacturing costs }} & \$ 85\end{array}
-The plant has capacity for 2000 axles and is considering expanding production to 1500 axles.What is the total cost of producing 1500 axles?

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Definitions:

Financial Data

Quantitative information pertaining to financial transactions, including revenues, expenses, profitability, and market performance.

Lowest Profit

This refers to the minimum amount of financial gain realized from business operations, investments, or other revenue-generating activities during a specific period.

Financial Data

Quantitative information pertaining to the financial health, performance, and transactions of an individual or organization.

Net Profit

The amount of money that remains from revenues after accounting for all costs and expenses, indicating the financial profitability of a business.

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