How to calculate selling price per unit
[DOC File]CHAPTER 1: INTRODUCTION
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a. selling price per unit. b. variable cost as a percentage of selling price. c. contribution margin per unit. d. contribution margin percentage. c 39. Company A has a lower variable cost per unit and higher total fixed costs than Company B. The selling prices of their products are the same. Sales fluctuate considerably for both companies ...
[DOC File]Practice Problems: Chapter 7S, Capacity Planning
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Jack’s Grocery is manufacturing a “store brand” item that has a variable cost of $0.75 per unit and a selling price of $1.25 per unit. Fixed costs are $12,000. Current volume is 50,000 units. The Grocery can substantially improve the product quality by adding …
[DOC File]Chapter 9--Break-Even Point and Cost-Volume-Profit Analysis
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If sales price per unit is increased by 10 percent, less units will have to be sold to generate gross revenues of $200,000. Sales price per unit = $200,000/5,000 units = $40/unit. $40/unit * 1.10 = $44/unit $(200,000 / 44/unit) = 4,545 units DIF: Moderate OBJ: 9-3. 54. On a break-even chart, the break-even point is located at the point where ...
[DOC File]SSCC - Home
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Profit per unit = Price per unit – ATC per unit when producing 70 units of output Profit per unit = 380 –170.71 = $209.29 per unit To verify your answer, check that profit per unit times number of units yields the same profit as you got initially.
[DOC File]Cost-Volume-Profit Problems
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Selling price per unit $20.00 . Variable costs per unit: Direct materials $4.00 . Direct manufacturing labor $1.60 . Manufacturing overhead $0.40 . Selling costs $2.00 . Annual fixed costs $96,000. Calculate the contribution margin per unit. $20 - $4 - $1.60 - $0.40 - $2 = $12. Calculate the number of units Northenscold’s must sell each year ...
[DOC File]Chapter 5
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Its product currently sells for $5 per unit and has variable costs of $2.50 per unit. Mr. Bic, the head of manufacturing, proposes to buy new equipment that will cost $400,000 and drive up fixed costs to $120,000. Although the price will remain at $5 per unit, the increased automation will reduce costs per unit …
[DOC File]Cost-Volume-Profit Problems
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Selling price per unit $20.00 . Variable costs per unit: Direct materials $4.00 . Direct manufacturing labor $1.60 . Manufacturing overhead $0.40 . Selling costs $2.00 . Annual fixed costs $96,000. Calculate the number of units Northenscold’s must sell each year to break even. 20X - 8X - …
[DOC File]Solutions for Homework ** Accounting 311 Cost ** Winter 2009
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Budgeted selling price: 420,000 ÷ 120,000 = $3.50. Actual variable cost per unit: 515,000 ÷ 130,000 = $3.96. Budgeted variable cost per unit: 240,000 ÷ 120,000 = $2.00. 3. A zero total static-budget variance may be due to offsetting total flexible-budget and total sales-volume variances. In this case, these two variances exactly offset each ...
[DOCX File]9.1 Calculate Break Even Point
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Total Contribution Margin is the portion of Revenue that does not include variable costs. Unit Contribution Margin, then, represents the amount of Revenue that each unit sold contributes to profit: Unit Contribution Margin = Price per Unit – Variable Cost per Unit. If today’s price per gallon is $3, then: Unit Contribution Margin = $3 - $2
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