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Sandford Company Manufactures One Product

question 25

Essay

Sandford Company manufactures one product.Its variable manufacturing cost is $16 per unit; total fixed manufacturing cost is $600,000.
Required:
1.Calculate Sandford's total manufacturing costs if it produces 10,000 units.
2.What would be the total cost per unit (including both fixed and variable costs)assuming that Sandford produces 10,000 units?
3.Calculate Sandford's total manufacturing costs if it produces 20,000 units.
4.What would be the total cost per unit assuming that Sandford produces 20,000 units?
5.Compare your answers from parts 2 and 4.If the cost per unit is different at 10,000 units than at 20,000 units,explain why.

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Definitions:

Maslow's Hierarchy of Needs

A theory in psychology proposed by Abraham Maslow that categorizes human needs into a five-level pyramid, with physiological needs at the bottom and self-actualization at the top.

Realizing Potential

The process or act of achieving one's full ability or capacity through personal development and growth.

Self-actualizing

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Humanistic Psychologist

A professional in psychology who focuses on individual potential and stresses the importance of growth and self-actualization.

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