=+EX 25-19 Target costing obj. 2 b. $16 Armstrong Alloys Inc. has three grades of metal

Question:

=+EX 25-19 Target costing obj. 2

b. $16 Armstrong Alloys Inc. has three grades of metal product, Type 5, Type 10, and Type 20.

Financial data for the three grades are as follows:

Type 5 Type 10 Type 20 Revenues $36,000 $40,000 $22,000 _______ _______ _______ Variable cost $22,500 $20,000 $15,000 Fixed cost 6,000 6,000 6,000 _______ _______ _______ Total cost $28,500 $26,000 $21,000 _______ _______ _______ Income from operations $ 7,500 $14,000 $ 1,000 Number of units ÷ 5,000 ÷ 5,000 ÷ 5,000 _______ _______ _______ Income from operations per unit $ 1.50 $ 2.80 $ 0.20 _______ _______ _______ _______ _______ _______ Armstrong’s operations require all three grades to be melted in a furnace before

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting

ISBN: 978-1111001346

23rd Edition

Authors: Carl S. Warren

Question Posted: