Ridez Manufacturing Currently Produces 1,000 Bicycles Per Month The Plant Has Capacity for 3,000 Bicycles and Is Considering

question 51

Multiple Choice

Ridez Manufacturing currently produces 1,000 bicycles per month.The following per unit data apply for sales to regular customers: $\begin{array}{lr}\text { Direct materials } & \$ 50 \\\text { Direct manufacturing labor } & 8 \\\text { Variable manufacturing overhead } & 12 \\\text { Fixed manufacturing overhead } & \underline{15} \\{\text { Total manufacturing costs }} & \$ 85\end{array}$ The plant has capacity for 3,000 bicycles and is considering expanding production to 2,000 bicycles.What is the per unit cost of producing 2,000 bicycles?

• A) $78.50 per unit
• B) $170 per unit
• C) $72.50 per unit
• D) $77.50 per unit

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Definitions:

Spot Trade

A transaction for the immediate delivery of a currency, financial instrument, or commodity.

Business Days

Days of the week excluding weekends and public holidays when businesses and government offices are typically open.

Forward Trade

Agreement to exchange currency at some time in the future.

Agreed-upon

Something that has been mutually accepted or concurred by all parties involved.