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1 Wolverine Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit. Assume that all of the activity levels mentioned in this problem are within the relevant range. Predict the following items for Wolverine Company: Required: 1. Variable cost per unit. 2. Total fixed cost per period. 3. Total expected costs at the 18,000-unit level of activity. 4. Total Contribution Margin at the 18,000 unit level of production and sales.

1 Wolverine Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit. Assume that all of the activity levels mentioned in this problem are within the relevant range. Predict the following items for Wolverine Company: Required: 1. Variable cost per unit. 2. Total fixed cost per period. 3. Total expected costs at the 18,000-unit level of activity. 4. Total Contribution Margin at the 18,000 unit level of production and sales.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1

Wolverine Company's average cost per unit is $1.425 at the 16,000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit.

Assume that all of the activity levels mentioned in this problem are within the relevant range.

Predict the following items for Wolverine Company:

Required:

1. Variable cost per unit.

2. Total fixed cost per period.

3. Total expected costs at the 18,000-unit level of activity.

4. Total Contribution Margin at the 18,000 unit level of production and sales.

 

 

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