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.)
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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Topic Video
Question
I need the answer to 4-6.
![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
$8.00
$5.00
$1.00
$6.00
$3.50
$2.50
$4.00
$1.00
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount
of period costs incurred to sell 25,000 units?
2. If 24,000 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.)
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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87f377c8-556b-40c3-ad73-583aac17d9d0%2Fb62f53bc-3952-40e4-a614-3c4834ed185f%2Fijxce2d_processed.png&w=3840&q=75)
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
$8.00
$5.00
$1.00
$6.00
$3.50
$2.50
$4.00
$1.00
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
Fixed selling expense
Fixed administrative expense
Sales commissions
Variable administrative expense
Required:
1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount
of period costs incurred to sell 25,000 units?
2. If 24,000 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.)
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.)
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