ABC Company has the following cost structure per unit: Selling price: $30.00 Variable costs per unit: ⚫ Direct materials: $6.00 Direct labor: $5.50 Variable manufacturing overhead: $2.00 • ⚫ Sales commission: $0.75 ⚫ Variable administrative: $0.25 Fixed costs per unit: ⚫ Manufacturing overhead: $8.00 . Selling expense: $4.00 ⚫ Administrative expense: $2.00 What is the contribution margin per unit?
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- The following product Costs are available for Haworth Company on the production of chairs: direct materials, $15,500; direct labor, $22.000; manufacturing overhead, $16.500; selling expenses, $6,900; and administrative expenses, $15,200. What are the prime costs? What are the conversion costs? What is the total product cost? What is the total period cost? If 7,750 equivalent units are produced, what is the equivalent material cost per unit? If 22,000 equivalent units are produced, what is the equivalent conversion cost per unit?Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter $ 130 1,500,000 4,500,000 a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. 16 19 17 13 500,000 units 500,000 units 600,000 unitsKimball Company has developed the following cost formulas: Material usage: Ym = $80X; r = 0.95 Labor usage (direct): Yl = $21X; r = 0.96 Overhead activity: Yo = $358,000 + $100X; r = 0.72 Selling activity: Ys = $46,000 + $14X; r = 0.93 where X = Direct labor hours The company has a policy of producing on demand and keeps very little, if any, finished goods inventory (thus, units produced equals units sold). Each unit uses one direct labor hour for production. The president of Kimball Company has recently implemented a policy that any special orders will be accepted if they cover the costs that the orders cause. This policy was implemented because Kimball's industry is in a recession and the company is producing well below capacity (and expects to continue doing so for the coming year). The president is willing to accept orders that minimally cover their variable costs so that the company can keep its employees and avoid layoffs. Also, any orders above variable costs will increase…
- narubhaiHi expart Provide solutionKesterson Corporation has provided the following information: Cost per Cost per Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense Unit Period $ 6.20 $ 3.10 $ 1.35 $ 14,000 $ 1.50 $ 0.40 $ 4,500 If the selling price is $21.90 per unit, the contribution margin per unit sold is closest to: Multiple Choice $9.35 $12.60 $8.45 $5.65
- UrmilabenNet income under variable costing is P 30,000. Data shows: the total manufacturing cost per unit is P 20; total variable cost per unit is P 15 per unit and variable period cost is P 3 per unit. Beginning and ending inventories are 1,000 units and 1,500 units, respectively. What is the income under absorption costing?Harrington Corporation produces three products, A, B, and C. Pertinent information on these products is as follows: Product Selling Price per Unit Variable Cost per Unit Fixed Costper Unit DL Hoursper Unit A $ 4.00 $ 1.00 $ 2.00 2 B $ 3.50 $ 0.50 $ 2.00 2 C $ 6.00 $ 2.00 $ 3.00 3 The objective function for a linear program to maximize contribution margin from the set of three products is: Multiple Choice Z = $3A + $2.50B + $5C. Z = A + B + C. Z = A + $0.50B + $2C. Z = $3A + $3B + $4C. Z = $4A + $3.50B + $6C.
- Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit $ 140 1,500,000 4,500,000 $ 17 20 18 14 500,000 units 500,000 units 600,000 units 37.00 $ $ 37.00 55.00 $ 55.00Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A Product B C $ 90.00 $ 52.00 $ 80.00 27.00 15.00 12.00 27.00 24.00 40.00 54.00 $ 36.00 40% 39.00 $ 13.00 52.00 $ 28.00 25% 35% The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? Answer is complete but not entirely correct. Complete this…The following costs are for Optical View Incorporated, a contact lens manufacturer: Output in Units Fixed Costs Variable Costs Total Costs 250 $ 4,750 $ 7,500 $ 12,250 300 4,750 9,000 13,750 350 4,750 10,500 15,250 400 4,750 12,000 16,750 Required: 2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost. (IMAGE ATTACHED) 3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unit fixed cost. (Use the line tool to draw the per-unit total cost, per-unit variable cost, and per-unit fixed cost. To earn full credit for this graph you must plot all required points for each curve. While plotting the points a tool icon will pop up. You can use this to enter exact co-ordinates for your points as needed.)