Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, itsaverage costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30 Variablemanufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrativeexpense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: If 23,000 units are producedand sold, what is the variable cost per unit produced and sold? If 27, 500 units are produced and sold, what is thevariable cost per unit produced and sold? If 23,000 units are produced and sold, what is the total variable cost related tothe units produced and sold? If 27, 500 units are produced and sold, what is the total variable cost related to the unitsproduced and sold? If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced? If27, 500 units are produced, what is the average fixed manufacturing cost per unit produced? If 23,000 units areproduced, what is the total fixed manufacturing overhead incurred to support this level of production? If 27, 500 units areproduced, what is the total fixed manufacturing overhead incurred to support this level of production?

The relevant range of production defines the range within which a company's assumptions about cost…

Answered: expense $ 3.80 Sales commissions $ 2.30…

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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39. If fixed costs are $288,000, the unit selling price is $35, and the unit variable costs are $15, what are the break-even sales (units) if fixed costs are reduced by $39,600? a.18,630 units b.9,936 units c.14,904 units d.12,420 units
If fixed costs are $1,260,000, the unit selling price is $202, and the unit variable costs are $110, the break-even sales (units) if fixed costs are increased by $43,800 is a.14,172 units b.17,006 units c.11,337 units d.21,258 units
Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: A B C Number of units 1,720 units 14,920 units 4,620 units Sales price per unit $ 1,800 $ 4,500 $ 5,550 Variable costs per unit 720 3,600 1,665 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio
Given the following information, find dollar sales: a. Fixed costs, $60,000; profit, $18,000; sales price per unit, $8.00; variable cost per unit, $5.00 b. Variable rate, .45; profit, $21,578.10; fixed costs, $58,382 c. Sales price per unit, $16.60; profit, $21,220; contribution margin, $9.29; fixed costs, $126,000
3. Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced? PLEASE NOTE: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67).
Thornton Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44. 12 Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 17 per unit 6 per unit $152,000 per year $102,100 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $178,500. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 21,400 units, how much could it pay in salaries for salespeople and still have a profit of $178,500? (Hint Use the equation method.) a. Break-even point in units Break-even point in dollars b Required sales in units Required sales in dollars C Fixed cost of salaries
Variable costs: Manufacturing Sales commission Total variable costs Fixed costs (allocated): Manufacturing Selling and administrative Total fixed costs Total costs Variable manufacturing cost per unit E20.24 Absorption cost per unit Total variable cost per unit = = $400 $192000-480 = ($192000-$120000)- 480 = ($192000-124000)-480 =$450 = 5650 $192 000 $ 24 000 $120 000 $48 000 $216 000 $168 000 $384 000 Determining markup percentage; target ROI: manufacturer LO 20.3 Refer to the cost and production data for the Wave Darter in Exhibit 20.4. The target profit is $110 000. Required Use the general formula to calculate the required markup percentages for each of the following cost- plus formulas: 1. variable manufacturing cost 2. absorption cost.
Three production processes - A, B, and C - have the following cost structure: the selling price is 5.26 per unit Process Fixed Cost per Year Variable Cost per Unit A 119164 2.54 B 80631 4.52 C 70617 5.27 1. What is the cost of process A for a volume of 7104 units? (round to the nearest cent).
If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $198,900, what is the manufacturing cost per unit if: a. 3,900 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 5,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 3,900 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 5,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
If fixed costs are $1,450,000, the unit selling price is $205, and the unit variable costs are $128, what are the break-even sales (units) if fixed costs are increased by $30,300? a. 28,837 units b. 23,070 units c. 19,225 units d. 15,380 units
If fixed costs are $1,300,000, the unit selling price is $208, and the unit variable costs are $105, what is the break-even point in sales units if fixed costs are increased by $42,600? a. 13,035 units b. 15,642 units c. 10,428 units d. 19,552 units
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…

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