Problem Information:

McDees Corporations relevant range of production is 10,000 15,000 units. Average per unit costs when producing 12,000 units is:

• Direct Materials $6.00
• Direct Labor $8.00
• Fixed MOH $3.00
• Fixed Selling and Administrative expense $4.00
• Variable MOH $5.00
• Variable Selling and Administrative expense $2.00

For each of the following questions show calculations to arrive at your answer.

1. Total manufacturing costs to produce 12,000 units is:

2. Total costs to produce and sell 12,000 units is:

3. If McDees sold all 12,000 units at a price of $35 each, McDees contribution margin would be:

4. If instead of 12,000 units, McDees manufactured 14,000 units, the total manufacturing costs would be:

5. If instead of 12,000 units, McDees manufactured 14,000 units, the total costs to produce and sell 14,000 units is: