Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. Sales volume (units) direct material 4000 1000 48000$ $12000 5000$ 84000$ 240004 direct employment additional industrial 20000$ costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1 Calculate the initial costs at the level of 4000 units 2_ Calculate period costs at the level of 1000 units 3 Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units
Noor Company provided data for the total cost of two levels of monthly production volume. The company produces one product. Sales volume (units) direct material 4000 1000 48000$ $12000 5000$ 84000$ 240004 direct employment additional industrial 20000$ costs 9000$ 6000$ Total marketing costs 2000$ 2000$ total administrative costs Required : 1 Calculate the initial costs at the level of 4000 units 2_ Calculate period costs at the level of 1000 units 3 Using the upper bound method, calculate the unit variable cost component of the additional industrial costs and the fixed cost component of the additional industrial costs. 4 What is the total cost when the company produces 2500 units
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Noor Company provided data for the total cost of two levels of monthly
production volume. The company produces one product.
4000
1000
Sales volume (units)
48000$ $12000
direct material
direct employment
additional industrial
20000$
5000$
84000$ 24000$
costs
9000$
6000$
Total marketing
costs
2000$
2000$
total administrative
costs
Required :
1. Calculate the initial costs at the level of 4000 units
2 Calculate period costs at the level of 1000 units
3 Using the upper bound method, calculate the unit variable cost
component of the additional industrial costs and the fixed cost component
of the additional industrial costs.
4 What is the total cost when the company produces 2500 units
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