CASE/ PROJECT Help Save & E Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and Its relevant range of production is 20,000 units to 30,000 units. When Hlxson produces and sells 25,000 unlts, its unit costs are as follows $8.00 $5.00 $1.00 $6.00 $3.50 $2.50 $4.00 $1.00 Direct naterials Direct labor Variable manufacturing overhend Fixed ranufacturing overhead Fixed selling expense Pixed adninistrative expense Sales commissions Variable administrative expense 10 points eBook References Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount of period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places.) a ir 26,000 unts are produced, what s the variable manufocturing cost per unit produced? What igq the average fxed manufecturing cost per unit produced? (Round your answers to 2 decimal places.) 4. # 27000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level cf production? 5. What total incremental manufacturing cost will Hikson incur if it increases production from 25,000 to 25,001 units? (Round your answer to 2 decimal places.) ibution margin per unit' to 2 6. What is Hikson's contribution margin per unit? What is its contribution margin ratio? (Round "Cont decimal places and "Contribution margin ratio" to 1 decimal place.) Prev 2017 Next > 28 CASE/ PROJECT Help declmal places and "Contribution margin ratio" to 1 decimal place. 7. What is Hbxson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermedlate values.) 8. How much will Hlxson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units? 9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.) 10. What is Hlxson degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.) 10 points 1 Total product costs incurred Total period costs incurred Variable manufacturing cost per unilt produced Average fixed manufacturing cost per unit produced 2. 3. Variable manufacturing cost per unit produced Average foxed manufacturing cost per unit produced 4. Total direct manufacturing costs incurred Total indirect manufacturing costs incurred 5. Total incremental manufacturing cost incurred 6 Contribution margin per unit Units 7. Break-even point in unit sales Break-even point in dollar sales 8 Increase in net operating income 9. Margin of safety 10. Degree of operating leverage
