Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit $ 170 Fixed costs (per quarter): Selling, general, and administrative (SG&A) 1,500,000 Manufacturing overhead 4,500,000 Variable costs (per unit): Direct labor 20 Direct materials 23 Manufacturing overhead 21 SG&A 17 Number of units produced per quarter 500,000 units Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit $ 170 Fixed costs (per quarter): Selling, general, and administrative (SG&A) 1,500,000 Manufacturing overhead 4,500,000 Variable costs (per unit): Direct labor 20 Direct materials 23 Manufacturing overhead 21 SG&A 17 Number of units produced per quarter 500,000 units Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Lillibridge & Friends, Incorporated provides you with the following data for its single product:
| Sales price per unit | $ 170 | |
|---|---|---|
| Fixed costs (per quarter): | ||
| Selling, general, and administrative (SG&A) | 1,500,000 | |
| Manufacturing |
4,500,000 | |
| Variable costs (per unit): | ||
| Direct labor | 20 | |
| Direct materials | 23 | |
| Manufacturing overhead | 21 | |
| SG&A | 17 | |
| Number of units produced per quarter | 500,000 | units |
Required:
Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Transcribed Image Text:a. Prime cost per unit
b. Contribution margin per unit
c. Gross margin per unit
d. Conversion cost per unit
e. Variable cost per unit
f. Full absorption cost per unit
g. Variable production cost per unit
h. Full cost per unit
500,000 units
600,000 units
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