Question

Chapter 6- HW 1. Crystal Co, a jewelry manufacturer, separated variable costs from fixed costs in order to conduct CVP analysis. Total fixed costs for the period were $3,800. Total costs for the period were $9,000. Total units produced during the period were 100. What would the variable cost per unit have been if Crystal had produced 125 units? A) S5/unit B) $36/unit C) $52/ unit D) $60/unit E) $8,700 2. Speedy Shipping is a trucking company that transports goods nationwide. After an analysis of its costs, Speedy has determined that it incurs a total of $85,000 of costs at the lowest level of service (200 shipments / year), and $425,000 of costs at the highest level of shipment:s (1,800/year). What are Speedy's total fixed costs? A) SO B) S36,000 C) S42,500 D) $54,250 E) $58,020

Answer 1

ans.4 is as follows-

"Total deal- 5200 Reuven uhun 12s unus art 340600 leos mit 阜

requirements 1 to 4 has been solved correctly. Please give positive ratings.

Contribution margin Sales -variable cost $150000 $0000 $60000 And No. Of units value selling price per u sales $150000 $12 per unit 12500 units nit Hence contribution margin per unit $60000 12500 units $4.80 per unit And Break even point (units)- Fixed cost + contribution margin per unit $27000 ÷ 4.8 5625 units So option b is correct answer