Variable manufacturing costs are $123 per unit, and fixed manufacturing costs are $55,000. Sales are estimated to be 4,000 units.If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar.How much would absorption costing operating income differ between a plan to produce 4,000 units and a plan to produce 5,000 units?Xa.$b. How much would variable costing operating income differ between the two production plans?

Absorption costing method is a method of costing in which product cost is calculated by adding…

Answered: Variable manufacturing costs are $123…

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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Compute the table below for the missing amounts. Compute the missing amounts, starting wit scenario A, then for the scenarios B and C
3. Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced? PLEASE NOTE: Costs per unit dollar amounts will be rounded to two decimal places and shown with "$" and commas as needed (i.e. $12,345.67).
Variable manufacturing costs are $120 per unit, and fixed manufacturing costs are $82,500. Sales are estimated to be 6,600 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,600 units and a plan to produce 7,500 units?fill in the blank 1 of 1$ b. How much would variable costing operating income differ between the two production plans?$fill in the blank 1 of 1
Atlantic Company sells a product with a break-even point of 6,148 sales units. The variable cost is $71 per unit, and fixed costs are $178,292. Determine the following:
urrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 units
Assume the following (1) variable expenses = $300,000, (2) unit sales = 10,000, (3) the contribution margin ratio = 20%, and (4) net operating income = $10,000. Given these four assumptions, which of the following is true? Multiple Choice The total fixed expenses = $60,000 The variable expense ratio is 400% The total contribution margin = $240,000 The total sales = $375,000
Using the high low method, Hadley Company calculated the variable cost as $2.5 per unit. The high level of the activity was 2320 units and $38325 of total cost. Total fixed costs equal $ your answer as a whole number. 32.525 Moving to another question will save this response. Ent << Question 4 of
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…

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