3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.) 6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.) 7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate values.)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing
cost per unit produced? (Round your answers to 2 decimal places.)
4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of
production?
5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your
answer to 2 decimal places.)
6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2
decimal places and "Contribution margin ratio" to 1 decimal place.)
7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate
values.)
8. How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units?
9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.)
10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.)
Transcribed Image Text:3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) 4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? 5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.) 6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.) 7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediate values.) 8. How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units? 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.)
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and
its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as
follows:
Amount
Per Unit
Direct materials
$8.00
$5.00
$1.00
$6.00
$3.50
$2.50
$ 4.00
$1.00
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Transcribed Image Text:Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials $8.00 $5.00 $1.00 $6.00 $3.50 $2.50 $ 4.00 $1.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
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