Topic 1 (25 units)Topic 1 (25 units)the production range of the Martinez Company ranges from 7,500 units to12,500 product units. When it produces and sells 10,000 units, the unit cost is as follows: Unit CostDirect Materials6,00€Direct Work3,50€Metavlita G.B.E.1,50€Stathera G.B.E.4,00€Fixed cost of sales3,00€Stable administrative expenditure2,00€ Sales commissions1,00€Variable administrative expenditure0,50€They ask:Calculate the total cost of the period incurred for the sale of10,000 units.Calculate the variable and the total period cost if 8,000 units were sold .Calculate the variable and total period cost if 12,500 units were sold .

When we say 10,000 units sold it is presumed as per given info 10,000…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Topic 1 (25 units)

the production range of the Martinez Company ranges from 7,500 units to

12,500 product units. When it produces and sells 10,000 units, the unit cost is as follows:

	Unit Cost
Direct Materials	6,00€
Direct Work	3,50€
Metavlita G.B.E.	1,50€
Stathera G.B.E.	4,00€
Fixed cost of sales	3,00€
Stable administrative expenditure	2,00€
Sales commissions	1,00€
Variable administrative expenditure	0,50€

They ask:

Calculate the total cost of the period incurred for the sale of

10,000 units.

Calculate the variable and the total period cost if 8,000 units were sold .
Calculate the variable and total period cost if 12,500 units were sold .

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