20 0mpany's average cost per unit is $1.425 at the 16.000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company: (a) Variable cost per unit. (b) Total fixed cost per period. (c) Total expected costs at the 18,000-unit level of activity. (d) Total Contribution Margin at the 18,000 unit level of production and sales.
20 0mpany's average cost per unit is $1.425 at the 16.000-unit level of activity and $1.38 at the 20,000-unit level of activity. The selling price is $3.00 per unit Assume that all of the activity levels mentioned in this problem are within the relevant range. Required: Predict the following items for Mateo Company: (a) Variable cost per unit. (b) Total fixed cost per period. (c) Total expected costs at the 18,000-unit level of activity. (d) Total Contribution Margin at the 18,000 unit level of production and sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mateo Company's average cost per unit is $1.425 at the 16.000-unit level of activity and $1.38 at
the 20,000-unit level of activity. The selling price is $3.00 per unit
Assume that all of the activity levels mentioned in this problem are within the relevant range.
Required:
Predict the following items for Mateo Company:
(a) Variable cost per unit.
(b) Total fixed cost per period.
(c) Total expected costs at the 18,000-unit level of activity.
(d) Total Contribution Margin at the 18,000 unit level of production and sales.
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