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please explain how you got your answer Branden wilcox- shot 9.28 PM Cost Formula Princeton Manufacturing Company summarizes the following total cost data for the
please explain how you got your answer
Branden wilcox- shot 9.28 PM Cost Formula Princeton Manufacturing Company summarizes the following total cost data for the month of March. Prin normal capacity per month of 25,000 units of product that sell for $40 each. For the foreseeable future,sales volume should ceton has a 0.00 points out of 1.00 equal normal capacity of production. $295,000 165,000 85,000 140,000 80,000 Administrative expense (fixed) 56,000 $821,000 Direct material Direct labor Variable overhead Fixed overhead (Note 1) Selling expense (Note 2) Notes 1. Beyond normal capacity, fixed overhead cost increases $6,350 for each 1,000 units or fraction thereof until a maximum capacity of 30,000 units is reached. 2. Selling expenses are a 5% sales commission plus shipping costs of $1.20 per unit. a. Using the information available, prepare a formula to estimate Princeton's total cost at various production volumes up to normal capacity Total cost-0 |+s0 x # of units. b. Prove your answer in requirement (a) relative to the total cost figure for 25,000 units Total cost Fixed cost Variable cost 0 c. Calculate the planned total cost at 20,000 units. $ d. If Princeton were operating at normal capaci the order to earn a net income before income tax of $8 per unit on the new sale? Required selling prices 0 per unit ty and accepted an order for 500 more units, what would it have to charge for ver It t Foddy CheckStep by Step Solution
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