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The following data apply to the provision of psychological testing services: Sales price per unit (1 unit = 1 test plus feedback to client) $
The following data apply to the provision of psychological testing services:
Sales price per unit (1 unit = 1 test plus feedback to client) | $ | 310 | |
Fixed costs (per month): | |||
Selling and administration | 14,000 | ||
Production overhead (e.g., rent of testing facilities) | 20,000 | ||
Variable costs (per test): | |||
Labor for oversight and feedback | 140 | ||
Outsourced test analysis | 19 | ||
Materials used in testing | 6 | ||
Production overhead | 8 | ||
Selling and administration (e.g., scheduling and billing) | 19 | ||
Number of tests per month | 2,000 | tests | |
Required:
Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month.
2,000 Tests | 1,250 Tests | ||
a. | Variable production cost per unit. | ||
b. | Variable cost per unit. | ||
c. | Full cost per unit. | ||
d. | Full absorption cost per unit. | ||
e. | Prime cost per unit. | ||
f. | Conversion cost per unit. | ||
g. | Contribution margin per unit. | ||
h. | Gross margin per unit. |
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