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Cost Classifications (Algo) [The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 24,000 to 31,000 units. When
Cost Classifications (Algo) [The following information applies to the questions displayed below.) Kubin Company's relevant range of production is 24,000 to 31,000 units. When it produces and sells 27.500 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 Cust per Unit $8.40 $5.40 $2.90 $6.00 $4.90 $ 3.90 $2.40 $ 1.90 Exercise 1-10 (Algo) Differential Costs and Sunk Costs (LO1-5] Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 27,500 to 27,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 27,500 to 27,501 units? 3. Assume that Kubin Company produced 27,500 units and expects to sell 27160 of them. If a new customer unexpectedly emerges i and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 27.500 units and expects to sell 27.160 of them. If a new customer unexpectedly emerges and expresses interest in buying the 340 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Help Save & Exit Check m
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