Lorberg Company produces a variety of products, including some that require the use of a… 1 answer below »

 

Lorberg Company produces a variety of products, including some that require the use of a specialized forming machine. Lorberg can rent forming machines for

$10,000 per year. Each machine can produce as many as 20,000 units per year.

  Required

1.    Prepare a table that shows the total cost of forming equipment rental and unit cost for units ranging from 0 to 50,000, using increments of 10,000 units.

2.    How would you describe the behavior of the forming equipment rental cost?

 

 

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