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Please answer questions 8, 9, and 10. Thank you. :) expense. 350XT E$3500 8. 3-8 Page 82 If the air conditioners have an average sales
Please answer questions 8, 9, and 10. Thank you. :)
expense. 350XT E$3500 8. 3-8 Page 82 If the air conditioners have an average sales price of $5,000, variable manufacturing costs are $2,500 per unit, variable manufacturing overhead is $500 per unit, and variable selling and administration costs (excluding shipping) are $200 per unit, what is the contribution margin per unit? 9. 3-9 Given the facts in part 3-8, estimate the total contribution margin for August if seven air conditioners are produced and sold. 10. 3-10 Given the facts in part 3-8, if total fixed costs (excluding shipping) are $3,000 per month, estimate operating income for August if seven air conditioners are produced and sold. 11. 3-11 By how much would the total contribution margin decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 12. 3-12 By how much would operating income decrease in August if Phillips decides to offer its customers a 5% price discount on the seven units? 133-13 Estimate variable shipping expenses to ship 12 air conditioners if the shipping company reduces the variable cost per unit by 10% for each unit shipped in excess of 10 units. 3-14 Given the facts in part 3-13, estimate total shipping expenses for 12 air conditioners 3-15 Given the facts in part 3-13, are variable shipping expenses linear or non- linear? Explain Step by Step Solution
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