The Colin Division of Crane Company sells its product for $30.00 per unit. Variable costs per unit include: manufacturing, $13.80; and selling and administrative, $4.00. Fixed costs are: $322000 manufacturing overhead, and $54000 selling and administrative. There was no beginning inventory. Expected sales for next year are 46000 units. Matthew Young, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 46000 units or 54000 units next year. What would the manufacturing cost per unit be under variable costing for each alternative? 46000 units 54000 units $13.80 $13.80 $17.80 $17.80 $19.55 $20.80 $20.80 $19.55
The Colin Division of Crane Company sells its product for $30.00 per unit. Variable costs per unit include: manufacturing, $13.80; and selling and administrative, $4.00. Fixed costs are: $322000 manufacturing overhead, and $54000 selling and administrative. There was no beginning inventory. Expected sales for next year are 46000 units. Matthew Young, the manager of the Colin Division, is under pressure to improve the performance of the Division. As part of the planning process, he has to decide whether to produce 46000 units or 54000 units next year. What would the manufacturing cost per unit be under variable costing for each alternative? 46000 units 54000 units $13.80 $13.80 $17.80 $17.80 $19.55 $20.80 $20.80 $19.55
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Colin Division of Crane Company sells its product for $30.00 per unit. Variable costs per unit include: manufacturing, $13.80; and selling and administrative, $4.00. Fixed costs are: $322000 manufacturing
What would the
46000 units 54000 units
$13.80 $13.80
$17.80 $17.80
$19.55 $20.80
$20.80 $19.55
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