Exercise 3-4A (Algo) Determining variable cost from incomplete cost data LO 3-1Rundle Corporation produced 217,000 watches that it sold for $17 each during year 2. The company determined that fixedmanufacturing cost per unit was $7 per watch. The company reported a $1,085,000 gross margin on its year 2 financial statements.RequiredDetermine the variable cost per unit, the total variable cost, and the total contribution margin.Variable cost per unitTotal variable costTotal contribution margin$427

The variable expense is an expense that changes as per the proportion of production of output or…

Answered: Variable cost per unit Total variable…

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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Total variable costs are deducted from Total mixed costs to obtain which of these? Group of answer choices Budgeted costs. Mixed costs per unit. Fixed costs per unit. Total fixed costs.
Show how each of these costs will behave as the volume of activity decreases. Variable cost per unit Total variable cost Fixed cost per unit Total fixed cost A. Increase B. Decrease C. Remains the same
Contribution margin dividedt by Income is the: Multiple Choice Contribution margin ratio. Margin of safety. Degree of operating leverage. Sales mix. Break-even point in units.
Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable and Mixed Costs An appreciation of cost behavior is needed in order for management to understand and predict profitability as the costs of material, labor and other operating expenses and levels of production and sales change. It's important to review the cost behavior of fixed, variable and mixed costs before contribution margins, cost-volume-profit analysis, and break-even points. 1. In the table below, Have-A-Seat Inc. has outlined many of the costs associated with producing office chairs. With respect to the production and sale of office chairs, classify each cost as fixed, mixed, or variable. a. Pressure-molded plastic for chair frames b. Pension cost: $0.50 per employee hour on the job c. Insurance premiums for inventory: $2,100 per month plus $0.01 for each dollar of inventory over $2 million d. Property taxes: $120,000 per year for the factory building and…
How do you get the variable cost per unit produced and sold?
Increasing variable cost while decreasing fixed cost

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Variable cost per unit Total variable cost Total contribution margin $