Homework Answers
| Variable cost of Goods Sold per Unit= 380545/62900=6.05 per unit |
| Part-5 |
| Additional Contribution per Unit from sales of Addition al unit= Selling Price- Variable cost per Unit |
| =$11-$6.05=$4.95 per Unit |
| Firm Profit would be increased by ( $4.95X4320)=$21384 |
| Part-6 |
| Revised Variable cost= $6.05+0.76+0.27=$7.08 |
| Additional Contribution per Unit from sales of Addition al unit= Selling Price- Variable cost per Unit |
| =$11-$7.08=$3.92 per Unit |
| Firm Profit would be increased by ( $3.92X4320)- 1500=$15434 |
| Part-7: |
| Selling Price reduced by= $18-$17.53=$0.47 |
| Xompany profit would be reduced by ( 62900X0.47)=$29563 |
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Last year, X Company sold 62,900 units of its only product for $18.00 each. Total costs were as follows: Cost of go...
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Last year, X Company sold 64,900 units of its only product for
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Fixed
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Selling and administrative
Variable
$86,966
Fixed
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Last year, X Company sold 64,300 units of its only product for $18.00 each. Total costs...
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Last year, X Company sold 67,200 units of its only product for
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5. If X Company had accepted the special order, firm profits would
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Last year, X Company sold 64,900 units of its only product for
$18.00 each. Total costs were as follows:
Cost of goods sold
Variable
$425,095
Fixed
145,376
Selling and administrative
Variable
$86,966
Fixed
79,827
At the end of the year, a company offered to buy 4,170 units of the
product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected...
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Last year, X Company sold 67,200 units of its only product for
$17.00 each. Total costs were as follows:
At the end of the year, a company offered to buy 4,780 units of
the product but only for $12.00 each. X Company had the capacity to
produce the additional units, and even though there would have been
no additional selling and administrative costs, it rejected the
offer.
5. If X Company had accepted the special order, firm profits would
have...
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