Question
Pleas help me with the bellow Basic Electric Motors is a division of Basic Electric Products Corporation. The division manufactures and sells an electric switch
Pleas help me with the bellow
Basic Electric Motors is a division of Basic Electric Products Corporation. The division manufactures and sells an electric switch used in a wide variety of applications. During the coming year, it expects to sell 210,000 units for $8 per unit. Ester Madden is the division manager. She is considering producing either 210,000 or 240,000 units during the period. Other information is as follows:
Division Information for 2020Beginning inventory0Expected sales in units210,000Selling price per unit$8Variable manufacturing cost per unit$2.30Fixed manufacturing cost (total)
$504,000
Fixed manufacturing overhead costs per unit
Based on 210,000 units
$2.40per unit ($504,000 210,000)Based on 240,000 units
$2.10per unit ($504,000 240,000)
Manufacturing cost per unit
Based on 210,000 units
$4.70
per unit ($2.30 variable + $2.40 fixed)
Based on 240,000 units
$4.40
per unit ($2.30 variable + $2.10 fixed)Variable selling and administrative expenses
$0.30per unit
Fixed selling and administrative expenses (total)
$11,100
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