Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $81 per-unit profit under absorption costing but would have reported a total profit

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $81 per-unit profit under absorption costing but would have reported a total profit $72,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62.5% was maintained, what is the apparent:

a. Fixed cost per unit?

$Answer per unit

b. Sales price per unit?

$Answer per unit

c. Variable cost per unit?

$Answer per unit

d. Unit sales volume if total profit under absorption costing was $567,000?

Answer units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we need to understand the difference between absorption costing and variable costing Key Concepts Absorption Costing Includes al... 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

Sound Investing, Chapter 11 - Crafty Comprehensive Income

Authors: Kate Mooney

1st Edition

0071719334, 9780071719339

More Books

Students also viewed these Accounting questions

Question

What is meant by enterprise architecture?

Answered: 1 week ago