Question
One tents has provided their per-unit sales and cost information for the year ended December 31, 2018. All per-unit costs below are based on the
One tents has provided their per-unit sales and cost information for the year ended December 31, 2018. All per-unit costs below are based on the production and sale of 3,000 name tents. the relevant range is 0 - 3,500 tents
Sales $45
Costs
variable costs
direct materials 5
direct labor 7
Manufacturing Overhead 13
Period Costs 4
Fixed Costs
Manufacturing Overhead 5
Period cost 7
1. if 2000 tents are produced and sold, what is the product cost per tent?
2. what is the fixed cost per tent at 1000 tents( including costs) produced and sold?
3. what are the total fixed costs in this example at 2000 name tent (produced and sold)?
4. what are the total variable costs in this example at 2000 name tents (produced and sold)?
5. what are the total period costs at 2000 name tents(produced and sold)?
6. will Nancy's turn a profit if they sell 2000 name tents?
7. what is the cost equation of nancy's?
8. what is the contribution margin per unit?
9. how many units does nancy need to sell in order to break even if she them at the price listed at above?
10. if nancy expects to sell only 2000 tents, what price should she charge to break even?
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