Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12.500 units, its average costs per unit are as
Kubin Company's relevant range of production is 11,000 to 14,000 units. When it produces and sells 12.500 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed Manufacturing overhead Fixed selling expense Fixed adninistrative expense Sales commissions Variable initiative expenze Amount per that $7.20 $ 4.20 $ 1.70 $ 5.20 $ 3.TO $ 2.70 $ 1.20 $ 0.70 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 12,500 to 12,501 units? 2. What is the incremental cost incurred if the company increases production and sales from 12.500 to 12.501 units? 3. Assume that Kubin Company produced 12,500 units and expects to sell 12.280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 12,500 units and expects to sell 12.280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Assume that Kubin Company produced 12,500 units and expects to sell 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? incremental manufacturing cost Required 1 Required 2 Required Required 4 Assume that Kubin Company produced 12,500 units and expects to sel 12,280 of them. If a new customer unexpectedly emerges and expresses interest in buying the 220 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? (Round your answers to 2 decimal places.) Show less Sales commission Variable adminative expanse Variable cost per unit bold 0.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started