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 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 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 2,500 Reviews $1,100 2,000 Reviews 56,000 79,000 310 100 70 80 90 2,500 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
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
2,500
Reviews
$ 1,100
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.
Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
2,000
Reviews
56,000
79,000
310
100
70
80
90
2,500 reviews
4
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 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 2,500 Reviews $ 1,100 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. Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar. 2,000 Reviews 56,000 79,000 310 100 70 80 90 2,500 reviews 4
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