Question: A company has a product with variable costs per unit of $5 and fixed costs per unit of $10. They expect to produce and sell

A company has a product with variable costs per unit of $5 and fixed costs per unit of $10. They expect to produce and sell 10.000 units per month, at a selling price of $20 per unit. They have capacity to produce and sell 20.000 units per month. What is the company's total cost each month?

Step by Step Solution

★★★★★

3.43 Rating (153 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

variable cost per unit of 5 Fixed cost pe... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Given the following reaction and concentration of reagents and product from time 1 to time 4 A + B Y Elaborate on how you will determine reaction order and calculate the reaction rate constant for...

The variable manufacturing costs per unit of Nascar Motors are: 1. Prepare income statements for Nascar Motors in April and May of 2008 under throughput costing. 2. Contrast the results in...

The variable manufacturing costs per unit of BigScreen Corporation are: 1. Prepare income statements for BigScreen in January, February, and March of 2009 under throughput costing. 2. Contrast the...

Omega Widget Manufacturers has variable costs (of making 10,000 widgets) that equal $20 per widget.Omega's total fixed costs equal $100,000. Currently, the selling price is $32 per widget...

Zee-Drive Ltd. is a computer manufacturer. One of the items they make is monitors. Zee-Drive has the opportunity to purchase 16,400 monitors from an outside supplier for $205 per unit. One of the...

Details of Troy Horse Ltds income statement for the past year are as follows. Required Consider each of the following independent situations. (a) Determine the companys break-even point in units and...

The Gearing Company has provided you with the following information regarding their operating and financing costs: a. Calculate its degree of operating leverage at 10,000 units sold. b. Calculate its...

A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed costs of $3,000 and desires a target income of $10,000. What will be...

A company has a product with variable per unit production costs of $5, and fixed production costs of $35,000. If the company plans to sell 5,000 units, what must the sales price be in order to break...

Aravan Company purchases 4,000 units of Product Beta each year in lots of 400 units per order. The cost of placing one order is $20, and the cost of carrying one unit of product in inventory for a...

Suppose a bank in the island republic of Banana Land, known as Banana Bank has $20 million in reserves, $80 million in loans, $10 million in securities, $100 million in deposits and $10 million in...

Find the equivalent capacitance of the group of capacitors shown infigure. 5.00 F 3.00 2.00 4.00 ,3.00 F 6.00 .00 48.0 V

If force is being applied at the specified points which of the boards will be the most likely to cu

On July 24 of the current year, Sam Smith was involved in an accident with his business use automobile. Sam had purchased the car for $30,000. The automobile had a fair market value of $20,000 before...

The board of directors at Freeman-Brown Private School (FBPS) has hired you as part of a consulting team to review the situation and present your findings and recommendations. Write a paper...

David Andrews works at the Neal Company where he makes $10 per hour with "time-and-a-half" for overtime. For the week ended January 8, David worked 45 hours as follows: Job 417.34 hours Job 532.11...

A 1. CH,COCI, AICI, 2. NH,NH, cat. H 3. , ,. 90

solve Write the chemical formula of the following metal complexes or complex ions: formula name tetraaquacobalt(II) dicarbonyldicyanovanadium(II) dibromobis(ethylenediamine )nickel(II)

Five departments of National Training Institute, a nonprofit organization, share a rented building. Four of the departments provide services to educational agencies and have little or no competition...

Brehm Vineyards grows a unique white pinot noir grape that they use to produce a white wine that is in high demand. Brehm uses all the grapes they can grow to produce their own white pinot noir wine....

You work in the finance department of a telecommunications firm with a large direct sales force selling high- speed fiber optics access lines to companies wanting telephone and Internet access. Your...

Twelve tasks, with times and precedence requirements as shown in the following table, are to be assigned to workstations using a cycle time of 1.5 minutes. Two heuristic rules will be tried: (1)...

As part of a major plant renovation project, the industrial engineering department has been asked to balance a revised assembly operation to achieve an output of 240 units per eight- hour day. Task...

A producer of inkjet printers is planning to add a new line of printers, and you have been asked to balance the process, given the following task times and precedence relationships. Assume that cycle...