Answered: In 2023, the variable cost per unit is…

In 2023, the variable cost per unit is 10 and fixed cost per unit is 12 based on 1,000 units. IF in 2024, total units produced will increase by 20%, compute the total cost for 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: if a product total fixed cost is 50,000 and its variable cost is 28500 for 9500 units what should be…

A: Variable costs per unit = Total variable cost / no. of units = 28500/9500 = 3 per unit

Q: If the unit selling price is P16, the unit variable cost is P12, and fixed costs are P160,000, how…

A: The question is related to Cost Volume Profit Analysis. The Basic Sales equation is as under Sales…

Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…

A: Formula: Contribution margin = Selling price - variable cost

Q: You just graduated and started your new job. Your starting salary is $70,000/year. Your…

A: Given that, Starting salary = $70000 per year To 401(k) plan, Employer contributes = 2% of salary…

Q: A company is considering a project with a breakeven point of 18,000 units. The selling price is $22…

A: Formula:

Q: What is the earning before interest and taxes under the BEST case scenario?

A: The income statement is a financial statement which shows the company's profit over a period of…

Q: The Nature and Wildlife Corporation has manufacturing facilities in country A and an assembly plant…

A: Transfer price is the price at which one department of a company transfers its final product to…

Q: Hudson Co. predicts fixed costs of $400,000 for 2019. Its one product sells for $170 per unit, and…

A: Contribution margin per unit = Selling price per unit - Variable cost per unit…

Q: In 2024, Sunland Company had a break-even point of $372,000 based on a unit selling price of $6.00…

A: Variable cost is the cost which changes with the change in the level of production. This cost…

Q: Oriole Bucket Co., a manufacturer of rain barrels, had the following data for 2024 Sales quantity…

A: The contribution margin is calculated as the difference between the sales and variable costs. The…

Q: On 1 April 2019, Magnolia Ltd was incorporated and a prospectus was issued inviting applications for…

A: The journal entries to record the issuance and receipt of money are prepared as follows:

Q: A company has estimated its economic order quantity for Part A at 2,400 units for the coming year.…

A: Economic order quantity indicates the level of units that should be ordered to get the least cost of…

Q: Spice Inc.'s unit selling price is $51. the unit variable costs are $38, fixed costs are $102.000,…

A: Operating income involves the income generated by normal business transactions. This means that the…

Q: In respect of a factory the following figures have been obtained for the year 2020: Cost of material…

A: 1. Calculation of sales when profit is 20% of sales : Let sales be X , therefore profit will be X *…

Q: Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2021: Sales quantity…

A: Contribution margin is the difference of sales and variable cost. It is directly proportional to the…

Q: Fraser Manufacturing is considering producing two new products. Product 11-A will generate revenues…

A: Given:Product 11-A revenues (R11A) = $84,000Product 22-B revenues (R22B) = $98,000

Q: Garcia Corporation manufactures a drink bottle, model CL24. During 2020, Garcia produced 190,000…

A: Cost of production is the amount that a firm is required to incur in producing the required number…

Q: During March, a firm expects its total sales to be $162,000, its total variable costs to be $95,200,…

A: Ans. Contribution margin is calculated by deducting variable cost from total sales.

Q: Al Khalid LLC are the manufacturers of Lamps. The following are the details of their operation…

A: Reorder level = Maximum lead time * maximum consumption = 10 weeks * 200 lamp per week Reorder level…

Q: Kairos, Inc. produces three products namely, Product X, Product Y, and Product Z. The following data…

A: Product mix refers to the combination of different products that a company produces and sells. It is…

Q: Xyz Company sells 20000 units SP per unit is 12= VC per unit is 9/= Fixed cost for the period…

A: Variable costs are those costs which changes with change in activity level. Fixed costs are costs…

Q: Frey Auto makes and sells batteries. In 2020, it made 90.000 batteries and sold 54,000 of them, at…

A: Under the variable costing, fixed manufacturing cost is considered as a period cost and not added to…

Q: Willie Company sells 28,000 units at $36 per unit. Variable costs are $20.16 per unit, and fixed…

A: The Break-even point is that level of sales, where the total cost i.e variable and fixed both are…

Q: Tamarisk Inc is a company that manufactures and sells a single product. Unit sales for each of the…

A: Profitability means revenue minus expenses, whatever is left over is the profit. Businesses can’t…

Q: In 2020, Canada's population was 37.62 million, out of which the population under the age of 15 was…

A: Labor force participation rate is referred to as a metric that is used at the time of an analysis of…

Q: In 2021, Blossom Company had a break-even point of $331,700 based on a selling price of $5 per unit…

A: The breakeven point is when a business covers all its costs, where total revenue equals total…

Q: Variable cost is 5 per unit and Fixed cost is 10,000 per month. In Calendar Year 2023, the company…

A: Total cost refers to the sum of all the expenses incurred by a company to produce and sell a…

Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…

A: Lets start with basic understanding. Contribution is a sales less variable cost. In other words it…

Q: Waterway Industries has 24000 units in beginning finished goods. If sales are expected to be 130000…

A: Number of units to be produced takes into consideration, the units available for sale at the…

Q: Spice Inc.'s unit selling price is $51, the unit variable costs are $38, fixed costs are $102,000,…

A: Formula: Contribution margin = selling price - variable cost Deduction of variable cost from selling…

Q: If fixed costs are $1,252,000, the unit selling price is $225, and the unit variable costs are $106,…

A: Operating income: Operating income refers to the income generated from the operation of business,…

Q: The annual production capacity of a facility is 60,000 units. Assuming that the current annual…

A: The year in which the capacity increase should be made is shown hereunder : Annual production…

Q: Analyze the many ways in which an audit committee might help the internal auditors do their job…

A: An audit committee receives all internal and external audit reports, a board of directors committee…

Q: If fixed costs are $1,289,000, the unit selling price is $226, and the unit variable costs are $110,…

A: Break-even analysis is a technique widely used by the production department. It helps to determine…

Q: During 2020, X corp produced 70,000 units and sold 65,000 units at 50 per unit. Variable…

A: Lets understand the basics. There are generally two methods are followed which are, (1) Variable…

Q: iyadh computers planned and actually manufactured 200,000 units of its single product in 2020, its…

A: Riyadh Computers Traditional Income Statement Sales (120,000*40) 4800,000 Less: Cost of…

Q: The contribution margin ratio is 50%. If total fixed costs are \$21,000 , then what is the total…

A: Total cost is the sum of fixed cost and variable cost. Variable costs are those costs that change on…

Question

In 2023, the variable cost per unit is 10 and fixed cost per unit is 12 based on 1,000 units. IF in 2024, total units produced will increase by 20%, compute the total cost for 2024.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define Fixed Cost per unit

VIEW

Step 2: Calculation of Total Cost for Year 2024

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Al Khalid LLC are the manufacturers of Lamps. The following are the details of their operation during 2020. Average monthly market demand is 2,000 lamps, ordering cost is RO 200 per order, inventory carrying cost is 20 percent per annum, cost of lamps is RO 1,000 per lamp, normal usage is 100 lamps per week, minimum usage is 50 lamps per week, maximum usage is 200 lamps per week and lead time to supply 4 -6 weeks. You are required to calculate the maximum level of stock. a. 1120 units b. 1102 units c. 1063 units d. 1302 units
Apple company has the following information: Annual sales= 7.5 Million, annual interest rate amount= 729166, variable costs = 35% of sales, DFL=6. Based on these details, the total fixed cost will be approximately:
The Nature and Wildlife Corporation has manufacturing facilities in country A and an assembly plant in country B. In June 2020, the company will ship 1,000 units with a production cost of $65 per unit to its plant in country B. Its operating expenses in country A are $15,000 for the month. The income tax rate in country A is 20% and in country B it is 40%. The company plans to have a transfer price of $100 per unit. The final product can be sold in country B for $140. Country B’s operating expenses are $10,000 during the month. How much will the combined profits of the two operations be in April 2021?
Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated to increase the unit selling price to $1,600. Compute the current break-even sales (units).Answer Check Figure: 15,000 units Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $1,600, and all costs remain constant.
If the unit production is (700), direct labor wages (300) and energy cost (500), what productivity of labor and energy? she is the 0.85 0.87 0.75 If the total productivity for the year (2019) is (0.77) and for the year (2018) it is (0.71), what is the change in productivity for two years? 2.5 0.7 0.08
Please help me Thankyou.
In the year 2020, kim plastics sold 100,000 units of its product. Selling price per unit was 100. Standard and actual costs per unit based on production of 100,000 units were variable cost=P25, Fixed costs=P50. Find operating income as per direct costing, break even point in value.
fixed cost per unit is $1 when 100000 units are profuced and $2 per unit when 50,000 units are produced. what is the total fixed cost when nothing is produced? answer to the nearest whole dollar.
3. Patriot Oman predicts that it will use 360,000 kgs of materials during the year. The material is expected to cost OMR 5 per kg. Patriot Oman anticipates that it will cost OMR 72 to place each order. The annual carrying cost is OMR 4 per kg. Determine the Economic ordering quantity.
Predict future total costs when sales volume is (a) 378,000 units and (b) 418,000 units.
The company is looking to invest $800,000 for two addition lines for production. Our current ROI targets are at 15%. These two lines would then produce annual profits of $65,000 for each line. Do you think the company should move forward with this purchase?
Revenues generated by a new fad product are forecast as follows: Year Revenues $45,000 1 2 35,000 3 25,000 4 20,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment.