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Tubalcain manufactures brass and iron instruments. Their newest instrument has variable material costs of $44.88, and variable labor costs of $43.53. Fixed costs per year
| Tubalcain manufactures brass and iron instruments. Their newest instrument has variable material | |||||||||
| costs of $44.88, and variable labor costs of $43.53. Fixed costs per year are $323,000 and expected | |||||||||
| total production is 36,000 units. The up front costs are -$4,121,480 deprectiated straight line over 11 years, | |||||||||
| the length of the project. Salvage value is zero. The required rate is 11.40% | |||||||||
| a. | What is the varibable cost per unit? | ||||||||
| b. | What are the expected total costs for the year? | ||||||||
| c. | If the selling price is $115.81 per unit, what is the cash break-even point? If depreciation is | ||||||||
| $374,680, what is the accounting break-even point? What is financial break even point? Does Tubalcain | |||||||||
| break even for these measures? | |||||||||
| d. | What is the average cost per unit of production? | ||||||||
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School Finance A Policy Perspective
Authors: Allan Odden, Lawrence Picus
6th Edition
1259922316, 9781259922312
