Cours Print 1. MC. 19-089 Shot The manufacturing cost of Calico Industries fethr
ID: 2572058 • Letter: C
Question
Cours Print 1. MC. 19-089 Shot The manufacturing cost of Calico Industries fethree months of the year are provided below: Production (units) Total Cost April ssi May June $120,000 74,000 90,900 280,000 165,000 230,000 Hom Using the high-low method, the variable cost per unit and the total fixed costs are a. $0.40 per unit and $8,000 b. $4.00 per unit and $800 c. $0.78 per unit and $4,000 d. $7.80 per unit and $4,000 Cha 2. MC.19-087 Hom As production increases, the fixed cost per unit a. decreases b. remains the same C. increases d. either increases or decreases, depending on the variable costsExplanation / Answer
We are advised to solve only 1 question per submission. there are multiple question. i have tried to answer 6 of your questions:
Solution 1 Total Cost Production April 120,000 280,000 Highest production May 74,000 165,000 Lowest production June 90,900 230,000 Difference in Cost 46,000 Difference in Production 115,000 Variable cost per unit =46000/115000 Variable cost per unit 0.400 Toal Cost @ 280000 units Variable cost @ 0.4 112,000 Fixed csot Total Cost less variable cost Fixed csot =120000-112000 8,000 So option A is correct Solution 2 Option A is correct as fixed cost remains same at every production level like factory rent Solution 3 Total Untis Cost per unit tota cost 1 6,000 6,000 2 3,000 6,000 3 2,000 6,000 4 1,500 6,000 Since total cost is same at every production level, the cost nature is fixed cost Solution 4 Variable cost Fixed cost 1,200,000 expected profit 200,000 Total Contribution required 1,400,000 Sale price 240 Variable cost 110 Contribution per unit 130 Sale units =1400000/130 10,769 So option A is correct Solution 5 Total Sale 4,000,000 Margin of safety 25% MOS =4000000*25% 1,000,000 Breakeven sale 3,000,000 So option C is correct Solution 6 Fixed cost 750,000 Variable csot 60% Contribution 40% Breakeven sale =750000/40% 1,875,000 So option b is correct