Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost $8.00 per unit $5.00 per unit $23,000
A small business produces a single product and reports the following data: Sales price Variable cost Fixed cost $8.00 per unit $5.00 per unit $23,000 per month units per 10,500 month Volume The company believes that the volume will go up to 13,000 units if the company reduces its sales price to $7.25. How would this change affect operating income? A. It will increase by $2,250. OB. It will decrease by $2,250. OC. It will increase by $8,500. OD. It will decrease by $8,500. The budgeted production of Capricorn, Inc. is 12,000 units per month. Each unit requires 20 minutes of direct labor to complete. The direct labor rate is $70.00 per hour. Calculate the budgeted cost of direct labor for the month. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.) O A. $80,000.00 B. $280,000.00 O C. $840,000.00 OD. $42,000.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started