Grover Company has the following data for the production and sale of 2,200 units. Sales price per unit Fixed costs: Marketing and administrative Manufacturing overhead Variable costs: Marketing and administrative Manufacturing overhead Direct labor Direct materials What is the contribution margin per unit? 950 per unit $396,000 per period $308,000 per period $ LA LA LA $ $ 60 per unit 85 per unit 95 per unit 290 per unit

Grover Company has the following data for the production and sale of 2,200 units. Sales price per unit Fixed costs: Marketing and administrative Manufacturing overhead Variable costs: Marketing and administrative Manufacturing overhead Direct labor Direct materials What is the contribution margin per unit? 950 per unit $396,000 per period $308,000 per period $ LA LA LA $ $ 60 per unit 85 per unit 95 per unit 290 per unit

Name: Grover Company has the following data for the production and sale of
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: Grover Company has the following data for the production and sale of 2,200 units.Sales price per unitFixed costs:Marketing and administrativeManufacturing overhead.Variable costs:Marketing and administrativeManufacturing overheadDirect laborDirect m

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 4.00 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 4.00 Fixed selling expense $ 3.50 Fixed administrative expense $ 2.20 Sales commissions $ 1.20 Variable administrative expense $ 0.45 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.)
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 4.50 $ 1.40 $ 4.00 $ 4.00 $ 2.10 $ 1.10 $ 0.55 13. If the selling price is $23.00 per unit, what is the contributian margin per unit? (Do not round intermediate calculatic your answer to 2 decimal places.) 14. If 12,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of production? (Do not round intermediate calculations.) Total direct manufacturing cost Total indirect manufacturing cost 15. What incremental manufacturing cost will Martinez…
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (200,000 units) Variable costs Direct materials Direct labor Overhead Contribution margin Fixed costs Fixed overhead Fixed general and administrative Income Per Unit $ 15.00 Annual Total $ 3,000,000 2.00 400,000 4.00 800,000 2.50 500,000 6.50 1,300,000 2.00 1.50 400,000 300,000 $ 3.00 $ 600,000 The company receives a special offer for 20,000 units at $13 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $80,000 and incremental fixed general and administrative costs of $86,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or loss for the special…
Skolnick Corporation has provided the following information: Cost per Unit Direct materials $ 5.20 Direct labor $ 4.70 Variable manufacturing overhead $ 1.80 Cost per Period Fixed manufacturing overhead $ 126,000 Sales commissions $ 1.40 Variable administrative expense $ 0.60 Cost per Period Fixed selling and administrative expense $39,600 Selling price $20.6 per unit. The value of break-even point sales is:
Please help me
Farrow Company reports the following annual results. Contribution Margin Income Statement Sales (420, 00 units) Variable costs Direct materials Direct labor Overhead Per Unit $ 15.00 Annual Total $ 6, 300, 000 2.00 4.00 2.50 840, 000 1,680, 000 1,050, 000 2,730, 000 Contribution margin Fixed costs Fixed overhead 6.50 2.00 840, 000 630, 000 Fixed general and administrative 1.50 Incone $ 3.00 $ 1, 260, 000 The company receives a special offer for 42,000 units at $12 per unit. The additional sales would not affect its normal sales. Variable costs per unit would be the same for the special offer as they are for the normal units. The special offer would require incremental fixed overhead of $168,000 and incremental fixed general and administrative costs of $181,000. (a) Compute the income or loss for the special offer. (b) Should the company accept or reject the special offer? ces Complete this question by entering your answers in the tabs below. Required A Required B Compute the income or…
Dake Corporation's relevant range of activity is 2,600 units to 7,000 units. When it produces and sells 4,800 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.45 Direct labor $ 3.30 Variable manufacturing overhead $ 1.20 Fixed manufacturing overhead $ 2.50 Fixed selling expense $ 0.80 Fixed administrative expense $ 0.50 Sales commissions $ 0.60 Variable administrative expense $ 0.50 For financial reporting purposes, the total amount of product costs incurred to make 4,800 units is closest to:
Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Amount per Unit $ 7.60 $ 4.60 $ 2.10 $ 5.60 $ 4.10 $ 3.10 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 19,000 units are produced,…
Required information [The following information applies to the questions displayed below.] Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost Per Unit $ 6.30 $ 3.80 $ 1.50 $ 4.00 $ 3.30 $ 2.00 $ 1.00 $ 0.50 3. If 8,000 units are produced and sold, what is the variable cost per unit produced and sold? (Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Variable cost per unit sold $ 12.50 X
Kubin Company's relevant range of production is 11,000 to 14,000'units. When it produces and sells 12,500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.20 $ 4.20 $ 1.70 $ 5.20 $ 3.70 $ 2.70 $ 1.20 $ 0.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 12,500 to 12,501 units? 3. Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell…