Answer the following questions using the Information below: Crynton Company make

Question

Answer the following questions using the Information below: Crynton Company makes a household appliance with modal number L800. The goal for 2015 is to reduce direct materials usage per unit. No defective unto are currency produced. Manufacturing conversion costs depend on production capacity defined In terms of L800 units that can be produced. The industry market size for appliances Increased 5% from 2014 to 2015. The following additional data are available for 2014 end 2015: What is the cost affect of the growth component for conversion costs?

Explanation / Answer

The answer is C) $0

As the per unit conversion cost remains the same, the total conversion cost has increased due to increase in sales.

SO the change in per unit convesrion change is $0

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