mpany currentiy proaucir I sellih airect materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest (S) value) Оа. 46 O b. 25 c. None of the given answers O d. 50 Ое. 30

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Company XYZ is currently producing and selling 100 units. At this level, the total direct materials
cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is
$1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and
administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs.
Assume that the company wishes to increase the number of units produced and sold to 102 units,
what would be the incremental cost? (rounded to nearest ($) value)
О а. 46
Оь. 25
None of the given answers
O d. 50
O e.
30
Transcribed Image Text:Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) О а. 46 Оь. 25 None of the given answers O d. 50 O e. 30
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