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Hixson Company manufactures and sells one product for $ 3 4 per unit. The company maintains no beginning or ending inventories and its relevant range
Hixson Company manufactures and sells one product for $ per unit. The company maintains no beginning or ending inventories and
its relevant range of production is units to units. When Hixson produces and sells units, its unit costs are as
follows:
Required:
For financial accounting purposes, what is the total amount of product costs incurred to make units? What is the total amount
of period costs incurred to sell units?
If 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 decimal places.
If 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 decimal places.
If units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level of
production?
What total incremental manufacturing cost will Hixson incur if it increases production from to units? Round your
answer to decimal places.
What is Hixson's contribution margin per unit? What is its contribution margin ratio? Round "Contribution margin per unit" to
decimal places and "Contribution margin ratio" to decimal place.
What is Hixson's breakeven point in unit sales? What is its breakeven point in dollar sales? Do not round your intermediate
values.
How much will Hixson's net operating income increase if it can grow production and sales from units to units?
What is Hixson's margin of safety at a sales volume of units? Do not round your intermediate values.
What is Hixson's degree of operating leverage at a sales volume of units? Round your answer to decimal places.
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