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Current Manufacturing Costs $ 6.00 14.50 30.00 40.00 Proposed Manufacturing Costs $ 15.00 12.50 25.00 20.00 Materials and purchased parts Direct labor Variable overhead Fixed
Current Manufacturing Costs $ 6.00 14.50 30.00 40.00 Proposed Manufacturing Costs $ 15.00 12.50 25.00 20.00 Materials and purchased parts Direct labor Variable overhead Fixed overhead Manufacturing information for CB3668: Number of setups Batch size Cost per setup Machine hours 3,170 50 $ 300 94,000 2,470 50 $ 300 63,000 General, selling, and administrative costs are $10 variable cost per unit and $1,250,000 fixed; these costs are not expected to differ for either the current or the proposed manufacturing plan. Required 1. Compute the contribution margin per unit and the breakeven point in units for CB3668, both before and after the proposed reengineering project. Assume all setup costs are included in fixed overhead. 2. Determine the number of sales units at which CG would be indifferent as to the current manufacturing plan or the proposed plan. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the contribution margin per unit and the breakeven point in units for CB3668, both before and after the proposed reengineering project. Assume all setup costs are included in fixed overhead. (Round "Contribution margin per unit" to 2 decimal places and "Breakeven" answers to the nearest dollar amount.) Current Plan Proposed Plan Contribution margin per unit Breakeven units units Determine the number of sales units at which CG would be indifferent as to the current manufacturing plan or the proposed plan. (Do not round intermediate calculations. Round your final answer to the nearest whole number.) Indifference point units
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