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Question # 2: Using the information in the following table, answer the following questions. Answer each question independently. Show all your work. Average Cost per
Question # 2: Using the information in the following table, answer the following questions.
Answer each question independently. Show all your work.
Average Cost per Unit Direct materials $7.00 Direct labor $4.00 Variable manufacturing overhead $ [.50 Fixed manufacturing overhead $5.00 Fixed selling expense $3.50 Fixed administrative expense $2.50 Sales commissions $ [.00 Variable administrative expense $0.50 i. What is the incremental manufacturing cost incurred if the company increases production from 20.000 to 20.001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20000 to 20.00] units? 3. Assume that Kubin Company produced 20.000 units and expects to sell 19.800 of' them. Ifa new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold. what is the incremental manu'rctnring cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 20.000 units and expects to sell l9.800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold. what incremental selling and administrative cost per unit is incurred to sell these units to the customerStep by Step Solution
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