Answered step by step
Verified Expert Solution
Question
1 Approved Answer
B Corporation's relevant range of activity is 9,000 units to 13,000 units. When it produces and sells 11,000 units, its average costs per unit
B Corporation's relevant range of activity is 9,000 units to 13,000 units. When it produces and sells 11,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 7.00 $ 3.80 $ 2.10 $14.00 $ 3.10 $ 1.90 $ 0.60 $ 0.50 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 11,000 units? (Do not round intermediate calculations.) b. If 10,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations. Round "Per unit" answer to 2 decimal places.) d. If the selling price is $19.80 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) e. What incremental manufacturing cost will the company incur if it increases production from 11,000 to 11,001 units? (Round "Per unit" answer to 2 decimal places.)
Step by Step Solution
★★★★★
3.49 Rating (159 Votes )
There are 3 Steps involved in it
Step: 1
a To calculate the total amount of product costs incurred to make 11000 units we need to sum up the ...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