The following data apply to the provision of psychological testing services: Sales price per unit (1 unit = 1 test plus feedback to client) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analysis Materials used in testing $ 340 20,000 17,500 135 18 Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 5 14 19 2,000 tests Required: Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 2,000 Tests 1,250 Tests Variable production cost per unit. a. b. Variable cost per unit. C. Full cost per unit. d. Full absorption cost per unit. e. Prime cost per unit. f. Conversion cost per unit. g Contribution margin per unit. h. Gross margin per unit.
The following data apply to the provision of psychological testing services: Sales price per unit (1 unit = 1 test plus feedback to client) Fixed costs (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analysis Materials used in testing $ 340 20,000 17,500 135 18 Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 5 14 19 2,000 tests Required: Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) 2,000 Tests 1,250 Tests Variable production cost per unit. a. b. Variable cost per unit. C. Full cost per unit. d. Full absorption cost per unit. e. Prime cost per unit. f. Conversion cost per unit. g Contribution margin per unit. h. Gross margin per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Calculate the amount for each of the following (one unit=one test) if the number of tests is 2000 per month. Also calculate if the number of tests decreases to 1,250 per month. Do not round intermediate calculations. Round your final answers to the nearest whole dollar.
Transcribed Image Text:The following data apply to the provision of psychological testing services:
Sales price per unit (1 unit - 1 test plus feedback to client)
Fixed costs (per month):
Selling and administration
Production overhead (e.g., rent of testing facilities)
Variable costs (per test) :
Labor for oversight and feedback
Outsourced test analysis
Materials used in testing
Production overhead
Selling and administration (e.g., scheduling and billing)
Number of tests per month
340
20,000
17,500
135
18
14
19
2,000 tests
Required:
Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the
number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest
whole dollar.)
2,000 Tests
1,250 Tests
a,
Variable production cost per unit.
b.
Variable cost per unit.
Full cost per unit.
Pd.
d. Full absorption cost per unit,
e
Prime cost per unit.
f.
Conversion cost per unit.
1g.
Contribution margin per unit.
Gross margin per unit.
%24
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