Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bakers's relevant range of activity is 6 units to 4 units. When it produces and sells 11 units, its average costs per unit are as
Bakers's relevant range of activity is 6 units to 4 units. When it produces and sells 11 units, its average costs per unit are as follows: 4 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 $ 1.50 $22.see.00 .50 .40 $ 7,500.00 $ 5.000.00 $ 23.10 $ 6000.00 00:38. 40 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 11 units? (Do not round intermediate calculations.) b. If 55,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If55.000 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 $77.500.00 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) a Total product (manufacturing) cost b. Total perod (nonmanufacturing) cost Contribution margin per unit Total direct manufacturing cost
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