Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Proctoring Enabled: Exam 11 1 Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces and sells 10,000 units,

image text in transcribed

Proctoring Enabled: Exam 11 1 Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces and sells 10,000 units, its average costs per unit are as follows: 51 points Direct naterials Direct labor Variable manufacturing overhead Fixed manufacturing overhead. Fixed selling expense 01:18:31 Fixed administrative expense Sales commissions Variable administrative expense Required: Average Cost per Unit 6.60 $3.20 $1.50 13.40 $2.30 $1.90 $0.80 $ 0.70 a. For financial reporting purposes, what is the total amount of product costs incurred to make 10,000 units? (Do not round intermediate calculations.) b. If 11,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.) c. If 11,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations. Round "Per unit" answer to 2 decimal places.) d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.) e. What incremental manufacturing cost will the company incur if it increases production from 10,000 to 10,001 units? (Round "Per unit" answer to 2 decimal places.) a. Total product cost b. Variable cost per unit sold c. Total variable costs d. Contribution margin per unit e. Incremental manufacturing cost

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions

Question

What can a corporation do to lower its cost of capital?

Answered: 1 week ago

Question

What is liquidity?

Answered: 1 week ago