I don't understand how to compete the production cost per unit View PoliciesShow Attempt HistoryCurrent Attempt in ProgressCarla Vista Industries had sales in 2021 of $6,528,000 and gross profit of $1,056,000. Management is considering two alternativebudget plans to increase its gross profit in 2022.Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 120,000 units from its 2021level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume wouldincrease by 124,800 units.At the end of 2021, Carla Vista has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be36,000 units. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.50 in directlabor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,820,000.(a)Your answer is correct.Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.) (c1)X Your answer is incorrect.Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.)Plan APlan BProduction cost per unit4,002$4,00Save for LaterAttempts: 1 of 2 usedSubmit AnswerUsing multiple attempts will impact your score.25% score reduction after attempt 1OneDrive(d)Screenshot saThe screensho

Production cost refers to the amount that is raised from producing a product that includes the cost…

(c1) * Your answer is incorrect. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg. 1.25.) Plan A Plan B Production cost per unit 4.00 4.00 Attempts: 1 of 2 used Submit Answer Save for Later Using multiple attempts will impact your score. 25% score reduction after attempt 1 %24

(c1) * Your answer is incorrect. Compute the production cost per unit under each plan. (Round answers to 2 decimal places, eg. 1.25.) Plan A Plan B Production cost per unit 4.00 4.00 Attempts: 1 of 2 used Submit Answer Save for Later Using multiple attempts will impact your score. 25% score reduction after attempt 1 %24

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

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I don't understand how to compete the production cost per unit

View Policies
Show Attempt History
Current Attempt in Progress
Carla Vista Industries had sales in 2021 of $6,528,000 and gross profit of $1,056,000. Management is considering two alternative
budget plans to increase its gross profit in 2022.
Plan A would increase the selling price per unit from $8.00 to $8.40. Sales volume would decrease by 120,000 units from its 2021
level. Plan B would decrease the selling price per unit by $0.50. The marketing department expects that the sales volume would
increase by 124,800 units.
At the end of 2021, Carla Vista has 40,000 units of inventory on hand. If Plan A is accepted, the 2022 ending inventory should be
36,000 units. If Plan B is accepted, the ending inventory should be equal to 64,000 units. Each unit produced will cost $1.50 in direct
labor, $1.30 in direct materials, and $1.20 in variable overhead. The fixed overhead for 2022 should be $1,820,000.
(a)
Your answer is correct.
Prepare a sales budget for 2022 under each plan. (Round Unit selling price answers to 2 decimal places, e.g. 52.70.)

(c1)
X Your answer is incorrect.
Compute the production cost per unit under each plan. (Round answers to 2 decimal places, e.g. 1.25.)
Plan A
Plan B
Production cost per unit
4,00
2$
4,00
Save for Later
Attempts: 1 of 2 used
Submit Answer
Using multiple attempts will impact your score.
25% score reduction after attempt 1
OneDrive
(d)
Screenshot sa
The screensho

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