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.
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 4BE
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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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