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Acme computers produce 23,000 personal computers per year using its daytime shift. The fixed cost per year to produce computers is $2,000,000. The total labor costs are $9,109,000. Acme would like to increase their output to $49000 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 cost would only increase to $2,400,000. What is Acme’s per unit cost for the new shift?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91232023

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