TotalProduct JProduct KDirect material cost$700,000.00$400,000.00$300,000.00Overhead cost$280,000.00$160,000.00$120,000.00Selling & Administrative$140,000.00$80,000.00$60,000.00 Full Cost$1,120,000.00$640,000.00$480,000.00Profit (25% of full cost)$280,000.00$160,000.00$120,000.00 Sales$1,400,000.00$800,000.00$600,000.00 Selling price per unit $80.00$60.00 Using the prices calculated above, how much profit would result if the sales were 5,000 units of J and 15,000 units of K instead of 10,000 units of each?

Product J Full cost =640000 When there are 10000 units Cost per unit =640000/10000=64 Cost per unit…

Answered: Direct material cost $700,000.00…

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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	Total	Product J	Product K
Direct material cost	$700,000.00	$400,000.00	$300,000.00
Overhead cost	$280,000.00	$160,000.00	$120,000.00
Selling & Administrative	$140,000.00	$80,000.00	$60,000.00

Full Cost	$1,120,000.00	$640,000.00	$480,000.00
Profit (25% of full cost)	$280,000.00	$160,000.00	$120,000.00

Sales	$1,400,000.00	$800,000.00	$600,000.00

Selling price per unit		$80.00	$60.00

Using the prices calculated above, how much profit would result if the sales were 5,000 units of J and 15,000 units of K instead of 10,000 units of each?

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