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Within the relevant range, the variable cost per unit. a. differs at each activity. b. remains constant at each activity. c. increases as production increases. d. decreases as production increases. There are 2 steps to solve this one.
Larcker Manufacturing's cost accountant has provided you with the following information for January operations: Direct materials 38 per unit Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor $225,000 S210 per unit $ 22 per unit 29 per unift $200,000 6,000 7 per unit Fixed marketing and administrative costs Units produced and sold Variable marketing and ...
Here’s how to approach this question. To determine what will happen to the breakeven point if a product's variable cost per unit increases while the selling price and fixed costs remain constant, calculate the contribution margin per unit by subtracting the variable cost per unit from the selling price. 1.Contribution margin=Sales-Variable ...
Business. Accounting. Accounting questions and answers. assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000. If no units are sold, how much cost would the company incur?A) ZeroB) The amount of variable costs at the breakeven point C) 18,000D) 27,000.
Step 1. 4) To calculate the price required to obtain a yearly profit of $20,000 with fixed costs of $20,000,... 4. Fixed costs are $20,000 per year, the variable cost per unit is $10, and the selling price per unit is $20. What price must each book be sold to obtain a yearly profit of $20,000. Assuming that an estimated demand is the same ...
Compute total variable cost per unit. 2. Compute total fixed costs. 3. Prepare a flexible budget at activity levels of 6,000 units and 8,000 units. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a flexible budget at activity levels of 6,000 units and 8,000 units.
5. As production increases, variable costs per unit a. stay the same b. increase c decrease d. either increase or decrease, depending on the fixed costs 6. Contribution margin is the excess of sales revenue over variable cost another term for volume in the "cost-volume-profit" analysis a. b. c. profit d. the same as sales revenue A firm ...
Accounting questions and answers. Assume a sales price per unit of $20, variable cost per unit $15, and total fixed costs of $22320. What is the breakeven point in units? 1116 units. 1488 units. 4464 units. None of these answer choices is correct.
Variable selling and administrative. $ 1. Fixed costs per year: Fixed manufacturing overhead. $ 340,000. Fixed selling and administrative. $ 250,000. During the year, the company produced 34,000 units and sold 16,000 units. The selling price of the company’s product is $54 per unit.
Accounting questions and answers. Within the relevant range, variable costs can be expected to: A) vary in total in direct proportion to changes in the activity level. B) remain constant in total as the activity level changes. C) increase on a per unit basis as the activity level increases. D) increase on a per unit basis as the activity level ...