How to calculate fixed cost per unit
[DOC File]Chapter 11 Solutions
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Oct 21, 2008 · B) selling price minus fixed cost. C) variable cost. D) contribution margin. 35. Excerpts from a cost-volume-profit analysis indicate fixed costs of $50,000, a contribution margin per unit of $35, a selling price of $90, and a sales level of 4,000 units. What must be the targeted level of profit?
[DOC File]1
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d. total fixed costs increase and per-unit fixed costs increase. d 24. Which cost is NOT subtracted from selling price to. calculate contribution margin per unit? a. Variable manufacturing overhead. b. Variable selling expenses. c. Direct labor. d. Fixed manufacturing overhead. c 25. A committed fixed cost. a. can never be eliminated.
[DOCX File]University of Washington
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b. selling price is lower than variable cost per unit. c. selling price is less than average total cost per unit. d. fixed cost per unit is greater than variable cost per unit. b 6. As volume increases, average cost per unit. a. increases. b. decreases. c. remains constant. d. …
[DOC File]CHAPTER 13: INTRODUCTION TO PRODUCT COSTING
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Sep 02, 2010 · The best estimate of the total variable manufacturing cost per unit is: First, calculate the variable manufacturing overhead cost per unit: Variable manufacturing overhead cost = Change in cost Change in activity = ($1,015,000 - $1,003,200) (7,000 - 6,000) = $11.80 Fixed cost element of manufacturing overhead = Total cost - Variable cost element = $1,015,000 - ($11.80 x 7,000) = …
[DOC File]CHAPTER 1: INTRODUCTION
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6. Wheeler Inc. sold 125,000 units of product during the year. Variable cost per unit was $5, standard fixed manufacturing cost per unit was $8, and selling and administrative costs were $425,000. All costs were incurred as budgeted. Income was $175,000 after a favorable volume variance of $100,000. There were no changes in inventory during the ...
[DOC File]CHAPTER 1: INTRODUCTION - CPA Diary
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Cs = Cost of stockout = ($500 per day) (2 days) = $1000. Ce = Cost of excess inventory = Unit cost – Salvage Value = $200 – $50 = $150. Since 86.9% is between cumulative probabilities of 85% and 100%, we need to order 3 spares. Demand and the probabilities for the …
How to Calculate Fixed Cost per Unit | Double Entry Bookkeeping
Variable cost per unit is $20 and total fixed costs are $800,000. Required: Calculate contribution margin and operating income. Patel’s current manufacturing process is labor intensive. Patel’s production manager has proposed investing in a new machine, which will increase total fixed costs to $2,500,000 and decrease variable costs to $10 ...
[DOC File]Chapter 9 Making Capital Investment Decisions
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Average fixed cost per unit = Total fixed costs ÷ total units. Average fixed cost per unit = $31,200 ÷ 5,200 = $6.00. Use the following to answer questions 97-98: At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280. 97.
[DOC File]Cost Accounting
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Step 1: Calculate the sensitivity analysis variable. Price = 5 (1-10%) = $4.5/unit. Other variables remain the same as the base-case: Quantity = 10,000 units. Variable cost per unit = $3/unit. Fixed cost = $5,000. Step 2: Construct the Sensitivity Analysis Pro Forma Income Statement. Pro Forma Income Statement (10% price drop from base-case)
[DOC File]Cost Behavior: Analysis and Use
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or $5per unit per year * 50 units = $250 per year. To compute the annual cost of fixed setups, we have to know how many such setups were there in a year. If the annual demand D is 6000 units and each order size is Q=100 units, the book store must place D/Q = 6000/100 = 60 orders in a year.
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