Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balerio Corporation's relevant range of activity is 10,000 units to 14,000 units. When it produces and sells 12,000 units, its average costs per unit are

image text in transcribed
Balerio Corporation's relevant range of activity is 10,000 units to 14,000 units. When it produces and sells 12,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing over head Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 6.80 $ 3.40 $ 1.70 $13.60 $ 2.40 $ 2.00 $ 0.50 $ 0.40 Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 12,000 units? (Do not round intermediate calculations.) b. If 13,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If 13,000 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 $18.40 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 12,000 to 12,001 units? (Round "Per unit answer to 2 decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fair Value Measurement Practical Guidance And Implementation

Authors: Mark L. Zyla

3rd Edition

1119191238, 9781119191230

More Books

Students also viewed these Accounting questions

Question

What a re va lues? (p. 5 2)

Answered: 1 week ago