Falcon Manufacturing, which uses the high-low method, reported total costs of $12.80 per unit at its lowest production level of 5,000 units. When production tripled to its highest level, the total cost per unit dropped to $7.90. Falcon Manufacturing would estimate its variable cost per unit as: a. $5.45 b. $17.20 c. -$0.001024 d. $7.90

Falcon Manufacturing, which uses the high-low method, reported total costs of $12.80 per unit at its lowest production level of 5,000 units. When production tripled to its highest level, the total cost per unit dropped to $7.90. Falcon Manufacturing would estimate its variable cost per unit as: a. $5.45 b. $17.20 c. -$0.001024 d. $7.90

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter10: Cost Analysis For Management Decision Making

Section: Chapter Questions

Problem 8E: The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is...

See similar textbooks

Similar questions

The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.
During the month of August, Amer Corporation produced 12,000 units and sold them for P20 per unit. Total fixed cost for the period were P 154,000, and the operating profit was P 26,000. 9. Based on the foregoing information, the variable cost per unit is a. P 4.50 b. P 5.00 с. Р 6.00 d. P 7.17 Data to be used in applying the high-low method shows the highest cost of P69,000 and the lowest cost of P52,000. The data show P148,000 as the highest level of sales and P97,000 as the lowest level. 10. What is the variable cost per peso sales? c. P 0.54 d. P 3.00 a. P 0.33 h. P 0.47
Reynold's Company has a product with fixed costs of $279,000, a unit selling price of $27, and unit variable costs of $22. The break-even sales (units) if the variable costs are decreased by $3 is a.14,684 units b.12,682 units c.55,800 units d.34,875 units
Crane Corporation has fixed costs of $226800 and variable costs of $8.50 per unit. It has a target income $337680. How many units must it sell at $12 per unit to achieve its target net income? a.64800 units. b.161280 units. c.26682 units. d.96480 units.
Zhao Company has fixed costs of $455,600. Its single product sells for $191 per unit, and variable costs are $124 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. $ a. Margin of safety (in dollar) 611,200 b. Margin of safety (%)
Ivanhoe, Inc. has a unit selling price of $580, variable cost per unit of $340, and total fixed costs of $264,000. Compute the break-even salesunits and sales dollars. Break-even point (in units) Break-even point (in dollar) units
Need help
Drake Company produces a single product. Last year's income statement is as follows: Sales (23,000 units) $1,384,600 Less: Variable costs 938,400 Contribution margin $ 446,200 Less: Fixed costs 258,500 Operating income $ 187,700 Required: 1. Compute the break-even point in a) units and b) sales revenue. (In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar.) 2. What was the margin of safety in dollars for Drake Company last year? (Round your final answer to the nearest whole dollar.) 3. Suppose that Drake Company is considering an investment in new technology that will increase fixed costs by $227,800 per year, but will lower variable costs to 48 percent of sales. Units sold will remain unchanged. a) Prepare a budgeted income statement assuming Drake makes this investment. (Round all amounts to the nearest dollar.) b) What is the new…
Drake Company produces a single product. Last year's income statement is as follows: Sales (21,000 units) $1,278,900 Less: Variable costs 879,900 Contribution margin $399,000 Less: Fixed costs 259,800 Operating income $139,200 Required: Question Content Area 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal places. Round your final answers to the nearest whole unit or dollar. Break-even units units Break-even dollars 2. What was the margin of safety in dollars for Drake Company last year? Round your final answer to the nearest whole dollar.
During its first year, Yutsang Enterprises showed a $22 per-unit profit under absorption costing but would have reported a total profit of $20,000 less under variable costing. Suppose production exceeded sales by 600 units and an average contribution margin of 58% was maintained. a. What is the fixed cost per unit? b. What is the sales price per unit? c. What is the variable cost per unit? d. What is the unit sales volume if total profit under absorption costing was $240,000?
Crawford Industries
A recent income statement of Benton Corporation reported the following data: Sales revenue $ 8,000,000 Variable costs 5,000,000 Fixed costs 2,200,000 If these data are based on the sale of 20,000 units, the contribution margin per unit would be: Multiple Choice S40. $150. $290. S360. None of the answers is correct.