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 a. Variable review (production) cost per unit b. Variable total cost per unit c. Full cost per unit d. Full absorption cost per unit e. Prime cost per unit f. Conversion cost per unit g. Contribution margin per unit h. Gross margin per unit Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: 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 $ 500 50,000 70,000 2,000 Reviews 250 40 10 20 30 2,500 reviews

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 a. Variable review (production) cost per unit b. Variable total cost per unit c. Full cost per unit d. Full absorption cost per unit e. Prime cost per unit f. Conversion cost per unit g. Contribution margin per unit h. Gross margin per unit Review overhead Selling and administration (e.g., scheduling and billing) Number of reviews per month Required: 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 $ 500 50,000 70,000 2,000 Reviews 250 40 10 20 30 2,500 reviews

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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