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Please show all of the steps so I can understand how you arrived at the answer. This was all of the information that was given.
Please show all of the steps so I can understand how you arrived at the answer.
This was all of the information that was given.
Some Company makes and sells a product for $37. The company sells everything it makes. The relevant range for its production is 15,000 units to 28,000 units. When the company makes and sells 20,000 units, the cost per unit is as follows: 1. What is the total amount of product costs to make 20,000 units? 2. What is the total amount of period costs to make 20,000 units? 3. If the company makes and sells 22,000 units, what is the variable manufacturing cost per unit? 4. If the company makes and sells 22,000 units, what is the fixed manufacturing costs per unit? 5. If the company makes and sells 24,500 units, what is the variable manufacturing cost per unit? 6. If the company makes and sells 24,500 units, what is the fixed manufacturing cost per unit? 7. If the company makes and sells 27,000 units, what are the total amount of direct and indirect manufacturing costs incurred? 8. What is the amount of incremental manufacturing costs the company incurs by increasing production from 20,000 to 20,001? 9. What is the company's contribution margin per unit? What is the contribution margin ratio? 10. What is the break-even point in units? What is its break-even point in sales dollars? 11. By how much will the operating income increase if it can grow production from 20,000 to 21,700 units? 12. What is the company's margin of safety at a sales volume of 24,000 ? 13. What is the company's degree of operating leverage at a sales volume of 24,000 ? 14. Using the DOL from $13, by what percent will operating income change if the 24,000 sales volume increases by 5% ? Prove your answer with a contribution income statement Step by Step Solution
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