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First Question: ABC Company, reports the following per unit revenues and per unit costs at two levels of production: No Beginning inventory, No Ending
First Question: ABC Company, reports the following per unit revenues and per unit costs at two levels of production: No Beginning inventory, No Ending Inventory 1000 2000 Variable Fixed Mixed Per unit Units Units cost cost cost Sales Revenue 120 120 Costs: Direct Materials 30 30 Maintenance 12 7.5 Direct Labor 25.5 25.5 Indirect 1.5 1.5 Material Depreciation 6 3 Utilities 4.5 3.75 Rent 9 4.5 Total Cost Required: Do the following in detail: 1. According to classifying costs as variable, fixed, and mixed. What is the type of these costs above? 2. Find ABC company total cost formula. 3. Compute ABC company total cost at level of production of 1400 units? 4. Compute ABC company net income at level of production of 2000 units? 5. Compute ABC company contribution margin at level of production of 1500 units?
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