ANSWERS SHEET:

Ovation Company has a single product called a Bit. The company normally produces and sells 87,000 Bits each year at a selling price of S50 per unit. The company's unit costs at this level of activity are given below 8.50 Direct materials 8.00 Direct labour 1.80 Variable manufacturing overhead Fixed manufacturing overhead 5.00 ($435,000 total) Variable selling expenses 3.70 Fixed selling expenses 3.50 ($304,500 total) 30.50 Total cost per unit A number of questions relating to the production and sale of Bits follow. Each question is independent