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 UnitDirect materials $ 10.00Direct labor $ 6.00Variable manufacturing overhead $ 2.00Fixed manufacturing overhead $ 7.00Fixed selling expense $ 3.75Fixed administrative expense $ 2.25Sales commissions $ 4.50Variable administrative expense $ 1.50 I NEED HELP WITH QUESTIONS 4A-5 1a1b2a3a3b2bIf 23,000 units are produced, what is the average fixed manufacturingcost per unit produced? Round answers to 2 decimal places4a4b56a6b7a7b89For financial accounting purposes, what is the TOTAL PRODUCT COSTSincurred to make 24,000 units?10What is the TOTAL PERIOD COSTS incurred to sell 24,000 units?If 23,000 units are produced, what is the variable manufacturing costper unit produced? Round answers to 2 decimal placesIf 25,000 units are produced, what is the variable manufacturing costper unit produced? Round answers to 2 decimal placesIf 25,000 units are produced, what is the average fixed manufacturingcost per unit produced? Round answers to 2 decimal placesIf 26,000 units are produced, what are the TOTAL AMOUNT of directmanufacturing costs incurred to support this level of production?If 26,000 units are produced, what are the TOTAL AMOUNT of indirectmanufacturing costs incurred to support this level of production?What total incremental manufacturing cost will Bailey incur if itincreases production from 24,000 to 24,001? Round answer to 2decimal placesWhat is Bailey's contribution margin per unit? Round answer to 2decimal placesWhat is its contribution margin ratio? Round answer to 2 decimalplacesWhat is Bailey's break-even point in unit sales? Do not round yourintermediate valuesWhat is Bailey's break-even point in dollar sales? Do not round yourintermediate valuesHow much will Bailey's net operating income increase if it can growproduction 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 Donot round your intermediate valuesWhat is Bailey's degree of operating leverage at a sales volume of24,000 units? Round your answer to 1 decimal place

The fixed manufacturing costs do not change with change in level of production. For incremental cost…

Answered: Bailey Company manufacturers and sells…

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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Question

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 4A-5

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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