Hixson Company manufactures and sells one product for $34 per unlt. The company malntalns no beginning or ending Inventorles and Its relevant range of production is 20,000 unlts to 30,000 units. When Hixson produces and sells 25,000 unlts, Its unlt costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed nanufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable adninistrative expense Amount Per Unit $8.08 $5.88 $1.08 $6.88 $3.58 $2.58 $4.00 $1.88 Required: 1. For financlal accounting purposes, what Is the total amount of product costs Incurred to make 25,000 units? What Is the total amount of period costs Incurred to sell 25,000 unlts? 2lf 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unlt produced? (Round your answers to 2 decimal places.) 3. If 26,000 unlts are produced, what is the varlable manufacturing cost per unit produced? What Is the average fixed manufacturing cost per unlt produced? (Round your answers to 2 decimal places.) 4. If 27,000 unlts are produced, what are the total amounts of direct and Indirect manufacturing costs Incurred to support this level df production? 5. What total Incremental manufacturing cost wll Hixson Incur If It Increases production from 25,000 to 25,001 unlts? (Round your answer to 2 decimal places.) 6. What Is Hixson's contrlbution margin per unlt? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to 1 decimal place.) 7. What Is Hixson's break-even polnt In unit sales? What Is Its break-even polnt In dollar sales? (Do not round your Intermediate values.) 8. How much will Hixson's net operating Income Increase If It can grow production and sales from 25,000 unlts to 26,500 units? 9. What Is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your Intermediate values.) 10. What Is Hixson degree of operating leverage at a sales volume of 25,000 unlts? (Round your answer to 1 decimal places.) 1. Total product costs incurred Total period costs incurred 2. Variable manufacturing cost per unit produced Average fixed manufacturing cost per unit produced 3. Variable manufacturing cost per unit produced Average fixed manufacturing cost per unit produced 4. Total direct manufa g costs incurred Total indirect manufacturing costs incurred . Total incremental manufacturing cost incurred 8. Contribution margin per unit ntribution margin ratio Break-even point in unit sales 8. Increase in net operating income 10 Degree of operating leverage Units Break-even point in dollar sales 9. Margin of safety
