Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Phoenix Corporation manufactures smartphones, generally selling from 200,000 to 300,000 units per year. The following cost data apply to the activity levels shown: Number

image text in transcribedimage text in transcribedimage text in transcribed

Phoenix Corporation manufactures smartphones, generally selling from 200,000 to 300,000 units per year. The following cost data apply to the activity levels shown: Number of Units Total costs Fixed Variable Total costs Cost per Unit Fixed Variable Total cost per unit Required 200,000 250,000 300,000 $ 17,000,000 26,000,000 43,000,000 $ 85 130 $215 a. Complete the table by filling in the missing amounts for 250,000 and 300,000 units. b. Assume that Phoenix actually makes 280,000 units. What would be the total costs and the cost per unit at this level of activity? c. If Phoenix sells each unit for $240, what is Phoenix's magnitude of operating leverage at sales of 280,000 units? Complete this question by entering your answers in the tabs below. Required A Required B Required C Complete the table by filling in the missing amounts for 250,000 and 300,000 units. Note: Round "Cost per Unit" to 2 decimal places. Number of Units 200,000 250,000 300,000 Total costs Fixed $ 17,000,000 Variable 26,000,000 43,000,000 0 0 Total costs Cost per Unit Fixed $ 85.00 Variable $ 130.00 Total cost per unit $ 215.00 $ 0.00 $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting and Analysis

Authors: David Alexander, Anne Britton, Ann Jorissen

5th edition

978-1408032282, 1408032287, 978-1408075012

More Books

Students also viewed these Accounting questions

Question

Using a graphing utility, graph y = cot -1 x.

Answered: 1 week ago