Solution:
If the company volume doubles, the total cost per unit will decrease because, fixed cost per unit will decrease as total fixed cost will be applied on higher number of units.
Hence first option is correct.
Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of...
Wu Company incurred 540,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold. If the company's volume increases to 5,000 units, the total cost per unit will be Multiple Choice $18.00 O $20.00 $20 50 Wu Company incurred $103.600 of fixed cost and $118,400 of variable cost when 3,200 units of product were made and sold. if the company's volume increases to 3.700 units, the total cost per unit will be: Multiple...
Wu Company incurred $44,200 of fixed cost and $54,600 of variable cost when 2,100 units of product were made and sold. If the company's volume doubles, the total cost per unit will: Multiple Choice increase but will not double. stay the same. double as well. decrease.
Wu Company incurred $49,000 of fixed cost and $58,800 of variable cost when 4,900 units of product were made and sold. If the company's volume doubles, the company's total cost will: Multiple Choice stay the same double as well Increase but will not double decrease
Saved Wu Company incurred $124,000 of fixed cost and $140,000 of variable cost when 3,500 units of product were made and sold. If the company's volume increases to 4,000 units (within relevant range), the total cost per unit will be: Multiple Choice O $35.00
Wu Company incurred $73,600 of fixed cost and $86,400 of variable cost when 2,700 units of product were made and sold. If the company's volume increases to 3,200 units, the total cost per unit will be: Multiple Choice $50. $27. $23. $55.
QUESTION 9 Boomerang company sells a product at $100 per unit that has unit variable costs of $30. The company's break-even sales point in sales dollars is $150,000. How much profit will the company make if it sells 4,000 units? A. $120,000 B. $70,000 C.$175,000 D. $215,000 QUESTION 10 To find the break-even point for a company that sells several products, the analyst must make an assumption about what the sales mix will be and calculate a weighted average contribution...
Check my w AJ Manufacturing Company incurred $50,000 of fixed product cost and $40,000.of variable product cost during its first year of operation. Also during its first year, AJ incurred $16,000 of fixed and $13,000 of variable selling and administrative costs. The company sold all of the units it produced for $160,000. Required a. Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). AJ MANUFACTURING COMPANY Income Statement points b. Prepare an income statement using...
In September, Larson Inc. sold 50,000 units of its only product for $416,000, and incurred a total cost of $385,000, of which $41,000 was fixed costs. The flexible budget for September showed total sales of $460,000. Among variances of the period were total variable cost flexible-budget variance, 59,000U; total flexible-budget variance, $80,000U; and, sales volume variance, in terms of contribution margin, $43.000U. The sales volume variance, in terms of operating income, for September (to the nearest dollar) was: 2 00:50:15...
Pedregon Corporation has provided the following information: cost per UnitCost per PeriodDirect materials$6.35Direct labor$3.75Variable manufacturing overhead$1.50Fixed manufacturing overhead$15,000Sales commissions$0.50Variable administrative expense$0.55Fixed selling and administrative expense$4,500If 4,000 units are sold, the variable cost per unit sold is closest to:Multiple Choice $11.60 $14.60 $12.65 $16.55
Total Cost (@ 3,000 Units) Total Cost (@ 4,000 units) Variable Cost per Unit Total Fixed Cost Total Cost (@ 5,000 unit Direct labor (variable) $63,000 $84,000 ? ? Factory supervision (semi-variable) 50,000 65,000 ? ? Factory depreciation (fixed) 33,000 33,000 ? ? FIND FIXED AND TOTAL COST