Venus Computer can produce 23,000 personal computersa year on its daytime shift. The fixed manufacturing costs per yearare $2million and the total labor cost is $9,109,000. To increaseits production to 46,000 computers per year, Venus is consideringadding a second shift. The Unit labor cost for the second shiftwould be 25% higher then the day shift, but the total fixedmanufacturing costs would increase only to $2.4 million from $2million.
(a) Compute the unit manufacturing cost for the daytime shift.
(b) would adding a second shift increase or decrease the unitmanufacturing cost at the plant?