The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to elient) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analyais Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 24 320 16,000 20,000 160 18 6. 11 17 2,000 teato
The following data apply to the provision of psychological testing services: Sales price per unit (1 unit -1 test plus feedback to elient) Fixed costa (per month): Selling and administration Production overhead (e.g., rent of testing facilities) Variable costs (per test): Labor for oversight and feedback Outsourced test analyais Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 24 320 16,000 20,000 160 18 6. 11 17 2,000 teato
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Calculate the amount for each of the follow (one unit = one test_ if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
![The following data apply to the provision of psychological testing services:
Sales price per unit (1 unit -1 test plus feedback to client)
Fixed costa (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
%24
320
16,000
20,000
160
18
11
17
2,000 testo
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
c.
Full cost per unit.
d. Full absorption cost per unit.
Prime cost per unit.
e.
Conversion cost per unit.
Contribution margin per unit.
Gross margin per unit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F59e1e845-820e-4fe9-add9-1fc4529c88f2%2Fd0a7fcd8-fb83-4b2a-9266-2804c218275f%2Fg9tezq_processed.jpeg&w=3840&q=75)
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 costa (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
%24
320
16,000
20,000
160
18
11
17
2,000 testo
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
c.
Full cost per unit.
d. Full absorption cost per unit.
Prime cost per unit.
e.
Conversion cost per unit.
Contribution margin per unit.
Gross margin per unit.
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