Elmo Security Consultants (ESC) offer a standardized review of data security for small business owners. The following data apply to the provision of these reviews: Sales price per unit (1 unit = 1 review with recommendations) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of facilities) Variable costs (per review): Labor for oversight and feedback Outsourced security analysis Materials used in reviews Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: d. Full absorption cost per unit e. Prime cost per unit t Conversion cost per unit 9. Contribution margin per unit h. Gross margin per uni! Calculate the amount for each of the following (one unit = one review) if the number of reviews is 2.500 per month. Also calculate if the number of reviews decreases to 2.000 per month. 2,500 Reviews $ 508 50,000 70,000 2,000 Reviews 250 48 18 28 38 2,508 reviews

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Elmo Security Consultants (ESC) offer a standardized review of data security for small business owners. The following data apply to the
provision of these reviews:
Sales price per unit (1 unit = 1 review with recommendations)
Fixed costs (per month):
Selling and administration
Production overhead (e.g., rent of facilities)
Variable costs (per review):
Labor for oversight and feedback
Outsourced security analysis
Materials used in reviews
Review overhead
Selling and administration (e.g., scheduling and billing)
Number of reviews per month
Required:
d. Full absorption cost per uni!
e. Prime cost per unit
t Conversion cost per unit
9. Contribution margin per unit
h. Gross margin per uni!
2,500
Reviews
$ 508
50,000
70,000
Calculate the amount for each of the following (one unit = one review) if the number of reviews is 2.500 per month. Also calculate if the
number of reviews decreases to 2,000 per month.
2,000
Reviews
250
43
10
28
38
2,508 reviews
Transcribed Image Text:Elmo Security Consultants (ESC) offer a standardized review of data security for small business owners. The following data apply to the provision of these reviews: Sales price per unit (1 unit = 1 review with recommendations) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of facilities) Variable costs (per review): Labor for oversight and feedback Outsourced security analysis Materials used in reviews Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: d. Full absorption cost per uni! e. Prime cost per unit t Conversion cost per unit 9. Contribution margin per unit h. Gross margin per uni! 2,500 Reviews $ 508 50,000 70,000 Calculate the amount for each of the following (one unit = one review) if the number of reviews is 2.500 per month. Also calculate if the number of reviews decreases to 2,000 per month. 2,000 Reviews 250 43 10 28 38 2,508 reviews
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