Question: Johnson manufactures a single product and sells it at $30 per unit. Variable cost: Production $8 Selling and administrative $5 Fixed costs: Production $80,000 Selling and administrative $60,000 20,000 units were produced and 17,000 sold. Absorption cost would be: A. $20 per unit B. 12 per unit C. 13 per unit D. 8 per unit

Question: Johnson manufactures a single product and sells it at $30 per unit. Variable cost: Production $8 Selling and administrative $5 Fixed costs: Production $80,000 Selling and administrative $60,000 20,000 units were produced and 17,000 sold. Absorption cost would be: A. $20 per unit B. 12 per unit C. 13 per unit D. 8 per unit

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
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If fixed costs are $1,200,000, the unit selling price is $240, and the unit variable costs are $110, what is the amount of sales required to realize an operating income of $200,000? Answer a. 12,000 units b. 5,833 units c. 10,769 units d. 9,231 units
If fixed costs are $1,500,000, the unit selling price is $232, and the unit variable costs are $105, what is the amount of sales in units (rounded to a whole number) required to realize a target profit of $240,000? Oa. 13,701 units Ob. 14,286 units Oc. 6,466 units Od. 2,286 units
Revenue Variable costs: Direct labor Direct materials Contribution margin Fixed costs Profit margin $0 O $10,000 ($25,000) ($10,000) product X $50,000 O $50,000 $20,000 $30,000 ? ? ? product Y $80,000 $30,000 $20,000 ? ? ? a total $130,000 The company allocates fixed costs based on direct labor dollars. Compute the profit margin for product line X. $50,000 $50,000 $30,000 $25,000 $5,000
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