During its first year of operations, Nickelback Company paid $11,000 for direct material, $20,000 in wages for production workers, and $30,000 wages for administrative and sales personnel. Lease payments and utilities on the administrative building and production facilities amounted to $5,000 and $7,000, respectively. General, selling, and administrative expenses were $6,000. The company owns a delivery car and manufacturing equipment. The annual depreciation on the car is $ 1,000. The original cost of the equipment is $10,000 and has a salvage value of $2,000 after 4 years. The company produced 5,000 units and sold 4,000 units at a price of $15 a unit. Indicate the average cost to produce one unit Indicate the cost of goods sold Which of the following transactions would reduce net income for the period and WHY? a. Paid $1,600 cash for raw material cost b. Paid administrative salaries of $2,500 c. Depreciated production equipment for $3,000 d. Purchased $5,000 of merchandise inventory What is an upstream and downstream cost? and give an example of each that a bakery would have? Cost #1 Cost #2 100 $12 per unit $5 per unit UNITS SOLD 200 $6 per unit 300 400 $4 per unit $3 per unit $5 per unit $5 per unit $5 per unit Indicate whether fixed or variable for Cost #1 and Cost#21 Butters Corporation recently noticed an increase in its fixed cost. All other costs and revenues were unchanged. What impact will this have on break-even point and the margin of safety (increase, decrease, or stay the same) (1) Breakeven: (2) Margin of Safety