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: $ 2,000 65,000 92,500 400 190 160 170 180 2,500 reviews 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 2,500 Reviews 2,000 Reviews a. Variable review (production) cost per unit $ 920 $ 920 b. Variable total cost per unit $ 1,100 $ 1,100 c. Full cost per unit $ 1,163 $ 1,179 d. Full absorption cost per unit $ 777 $ 786 e. Prime cost per unit $ 560 $ 560 f. Conversion cost per unit $ 627 $ 636 g. Contribution margin per unit $ 1,080 $ 1,080 h. Gross margin per unit $ 1,054 $ 1,047

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Topic Video
Question

Rahul 

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:
$ 2,000
65,000
92,500
400
190
160
170
180
2,500 reviews
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.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
2,500
Reviews
2,000
Reviews
a. Variable review (production) cost per unit
$
920 $
920
b. Variable total cost per unit
$
1,100 $
1,100
c. Full cost per unit
$
1,163 $
1,179
d. Full absorption cost per unit
$
777 $
786
e. Prime cost per unit
$
560 $
560
f. Conversion cost per unit
$
627 $
636
g. Contribution margin per unit
$
1,080 $
1,080
h. Gross margin per unit
$
1,054
$
1,047
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: $ 2,000 65,000 92,500 400 190 160 170 180 2,500 reviews 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 2,500 Reviews 2,000 Reviews a. Variable review (production) cost per unit $ 920 $ 920 b. Variable total cost per unit $ 1,100 $ 1,100 c. Full cost per unit $ 1,163 $ 1,179 d. Full absorption cost per unit $ 777 $ 786 e. Prime cost per unit $ 560 $ 560 f. Conversion cost per unit $ 627 $ 636 g. Contribution margin per unit $ 1,080 $ 1,080 h. Gross margin per unit $ 1,054 $ 1,047
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education