Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Balerio Corporation's relevant range of activity is 6,000 units to 10,000 units When it produces and sets 000 units average costs per unit are

image text in transcribed

Balerio Corporation's relevant range of activity is 6,000 units to 10,000 units When it produces and sets 000 units average costs per unit are as follows 51 points 00:28:07 Skipped Direct materials Direct labor Variable manufacturing overhead Fixed selling expense Fixed manufacturing overhead Fixed administrative expense Sales commissions Variable administrative expense Required: Average Cost per Unit 5.6.40 $ 3.00 $1.30 $.13.20 a. For financial reporting purposes, what is the total amount of product costs incurred to make 8,000 units? (Do not round I intermediate calculations.) b. If 9,000 units are sold, what is the variable cost per unit sold? (Round Per unit" answer to 2 decimal places.) c. If 9,000 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 $18.00 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 8,000 to 8.001 units? (Round "Per unit" answer to 2 decimal places.) a. Total product cost b. Variable cost per unit sold c. Total variable costs d. Contribution margin per unit e. Incremental manufacturing cost

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_2

Step: 3

blur-text-image_3

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

Intermediate Accounting

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

16th edition

1118742974, 978-1118743201, 1118743202, 978-1118742976

More Books

Students also viewed these Accounting questions