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Bailey Company manufacturers and sells one product for $39 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 Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 3.75 Fixed administrative expense $ 2.25 Sales commissions $ 4.50 Variable administrative expense $ 1.50   I NEED HELP WITH QUESTIONS 6A-7A

Bailey Company manufacturers and sells one product for $39 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 Bailey Company produces and sells 24,000 units, its unit costs are as follows: Amount per Unit Direct materials $ 10.00 Direct labor $ 6.00 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 7.00 Fixed selling expense $ 3.75 Fixed administrative expense $ 2.25 Sales commissions $ 4.50 Variable administrative expense $ 1.50   I NEED HELP WITH QUESTIONS 6A-7A

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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Bailey Company manufacturers and sells one product for $39 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 Bailey Company produces and sells 24,000 units, its unit costs are as follows:

Amount per Unit
Direct materials $ 10.00
Direct labor $ 6.00
Variable manufacturing overhead $ 2.00
Fixed manufacturing overhead $ 7.00
Fixed selling expense $ 3.75
Fixed administrative expense $ 2.25
Sales commissions $ 4.50
Variable administrative expense $ 1.50

 

I NEED HELP WITH QUESTIONS 6A-7A

1a 1b 2a 3a 3b 2b If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced? Round answers to 2 decimal places 4a 4b 5 6a 6b 7a 7b 8 9 For financial accounting purposes, what is the TOTAL PRODUCT COSTS incurred to make 24,000 units? 10 What is the TOTAL PERIOD COSTS incurred to sell 24,000 units? If 23,000 units are produced, what is the variable manufacturing cost per unit produced? Round answers to 2 decimal places If 25,000 units are produced, what is the variable manufacturing cost per unit produced? Round answers to 2 decimal places If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced? Round answers to 2 decimal places If 26,000 units are produced, what are the TOTAL AMOUNT of direct manufacturing costs incurred to support this level of production? If 26,000 units are produced, what are the TOTAL AMOUNT of indirect manufacturing costs incurred to support this level of production? What total incremental manufacturing cost will Bailey incur if it increases production from 24,000 to 24,001? Round answer to 2 decimal places What is Bailey's contribution margin per unit? Round answer to 2 decimal places What is its contribution margin ratio? Round answer to 2 decimal places What is Bailey's break-even point in unit sales? Do not round your intermediate values What is Bailey's break-even point in dollar sales? Do not round your intermediate values How much will Bailey's net operating income increase if it can grow production and sales from 24,000 units to 25,500 units? What is Bailey's margin of safety at a sales volume of 24,000 units Do not round your intermediate values What is Bailey's degree of operating leverage at a sales volume of 24,000 units? Round your answer to 1 decimal place
Transcribed Image Text:1a 1b 2a 3a 3b 2b If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced? Round answers to 2 decimal places 4a 4b 5 6a 6b 7a 7b 8 9 For financial accounting purposes, what is the TOTAL PRODUCT COSTS incurred to make 24,000 units? 10 What is the TOTAL PERIOD COSTS incurred to sell 24,000 units? If 23,000 units are produced, what is the variable manufacturing cost per unit produced? Round answers to 2 decimal places If 25,000 units are produced, what is the variable manufacturing cost per unit produced? Round answers to 2 decimal places If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced? Round answers to 2 decimal places If 26,000 units are produced, what are the TOTAL AMOUNT of direct manufacturing costs incurred to support this level of production? If 26,000 units are produced, what are the TOTAL AMOUNT of indirect manufacturing costs incurred to support this level of production? What total incremental manufacturing cost will Bailey incur if it increases production from 24,000 to 24,001? Round answer to 2 decimal places What is Bailey's contribution margin per unit? Round answer to 2 decimal places What is its contribution margin ratio? Round answer to 2 decimal places What is Bailey's break-even point in unit sales? Do not round your intermediate values What is Bailey's break-even point in dollar sales? Do not round your intermediate values How much will Bailey's net operating income increase if it can grow production and sales from 24,000 units to 25,500 units? What is Bailey's margin of safety at a sales volume of 24,000 units Do not round your intermediate values What is Bailey's degree of operating leverage at a sales volume of 24,000 units? Round your answer to 1 decimal place
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