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20. A company is classifying its costs. It discovers that for any level of output between...
19. The following information relates to a product Fixed costs Required profit Selling price per unit...
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
19. The following information relates to a product Fixed costs Required profit Selling price per unit...
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal?...
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal? a. Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are c. Order maybe accepted below the normal selling price when the order will d. manufactured or purchased, so we can ignore the marginal cost of sales. result...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
MULTIPLE CHOICES I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even...
MULTIPLE CHOICES
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in further contribution...
At its present level of output of 100 units, a perfectly competitive firm discovers that (i)...
At its present level of output of 100 units, a perfectly competitive firm discovers that (i) its total fixed costs are $200 and (ii) its marginal cost is $7 and equal to average total cost. At an output level of 50 units, marginal cost is $4 and equal to average variable cost. The price of the commodity being produced is $6. At present level of output, the firm experiences A) losses equal to its total fixed cost. B) zero profits....
2. XYZ Ltd is estimating its costs on past information. The total costs incurred by the...
2. XYZ Ltd is estimating its costs on past information. The total costs incurred by the company at different levels of output were as follows: Output (units) 160.000 185,000 190,000 Total costs (£) 2,420,000 2,775,000 2,840,000 The company uses the high-low method to separate total costs into their fixed and variable elements. Ignore inflation Required: Show your workings for all parts. a. Calculate the estimated total costs for an output of 205,000 units. Ensure you show the variable cost per...
Faster Company manufactures a product with the following costs per unit at the expected production level...
Faster Company manufactures a product with the following costs per unit at the expected production level of 45000 units: Direct materials $12 Direct labor $20 Variable manufacturing overhead $9 Fixed manufacturing overhead $7 The company has the capacity to produce 50000 units. The product regularly sells for $55. Refer to the Figure above. A wholesaler has offered to pay $45 a unit for 6000 units. If the special order is accepted, the effect on operating income would be a A...
The estimated unit costs for a company to produce and sell aproduct at a level...
The estimated unit costs for a company to produce and sell a product at a level of 12,000 units per month are as follows: Cost Item Estimated Unit Cost Direct material $ 32 Direct labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 6 Variable selling expenses 3 Fixed selling expenses 4 What are the estimated conversion costs per unit?
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
19. The following information relates to a product Fixed costs Required profit Selling price per unit Variable cost per unit 72000 30000 10 4 How many units must be produced and sold to cover fixed costs and make the required profit? a 12000 b. 17000 c. 18000 d. 25500 20. A company is classifying its costs. It discovers that for any level of output between 10000 and 15000 units the freight cost per unit is always the same figure of...
18. Which of the following statements is wrong regarding the break-even analysis approach to investment appraisal? a. Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are c. Order maybe accepted below the normal selling price when the order will d. manufactured or purchased, so we can ignore the marginal cost of sales. result...
18-Which of the following statements is wrong regarding the approach to investment appraisal? a Break-even analysis is used to find out how far off the estimates could be before the project begins to lose money b. The marginal cost of sales will have to be incurred whether the goods are manufactured or purchased, so we can ignore the marginal cost of sales. e. Order maybe accepted below the normal selling price when the order will result in further contribution to...
MULTIPLE CHOICES
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in...
I8 Which of the following statements is vw approach to investment appraisal? ล. Break-even innalysis isused 1o find ont how far off the ostimates could be b. The marginal cost of sales will have to be incurred whether the goods are c Order mayb d. Marginal costing can help management to decide on pricing policy, the f before the project begins to lose money manufactured or purchased, so we can ignore the marginal cost of sales result in further contribution...
2. XYZ Ltd is estimating its costs on past information. The total costs incurred by the company at different levels of output were as follows: Output (units) 160.000 185,000 190,000 Total costs (£) 2,420,000 2,775,000 2,840,000 The company uses the high-low method to separate total costs into their fixed and variable elements. Ignore inflation Required: Show your workings for all parts. a. Calculate the estimated total costs for an output of 205,000 units. Ensure you show the variable cost per...
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