FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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- If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $245,100, what is the manufacturing cost per unit if a. 4,300 units are manufactured and the company uses the variable costing concept?arrow_forwardCardinal uses the high-low method of estimating costs. Cardinal had total costs of $26,450 at its lowest level of activity, when 7,100 units were sold. When, at its highest level of activity, sales equaled 12,700 units, total costs were $39,890. What would be the estimated variable cost per unit be?arrow_forwardA paper published in the Harvard Business Review points out a new way to calculate economic profit that could be more appropriate for service firms and other people-intensive companies. Instead of focusing on investment and return on investment, the focus is on employee productivity, in terms of both generating revenues and reducing costs. The approach is to first determine economic profit in the conventional way, except that we ignore taxes, so that economic profit is before tax, as follows: Economic profit = Operating profit − Capital charge Assume the following information for a hotel chain that wishes to adopt the new method. The firm has $100 million in operating profit, has $1 billion in investment, and uses a cost of capital rate of 5%, so the capital charge is $50 million and the economic profit is $50 million. Relevant calculations are contained in Part 1 of the following schedule: Part 1: Economic Profit (in thousands, except cost of capital rate) Revenue $…arrow_forward
- Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 7,425 $415,800 2,925 267,300 4,860 348,380 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) $ per unit Total fixed cost: $ b. Based on part (a), estimate the total cost for 3,730 units of production. Total cost for 3,730 units: $arrow_forwardIf variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $626,400, what is the manufacturing cost per unit if: a. 7,200 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 8,700 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 7,200 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 8,700 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4arrow_forwardComplete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: E (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A Number of units 1,510 units Sale price per unit $ 1,600 Variable costs per unit 1, 120 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Data Table A Number of units 1,510 units 14,390 units 2,450 units Sale price per unit 1,600 $ 4.400 5,000 Variable costs per unit 1,120 880 3,750 Calculate: Contribution margin per unit Total contribution margin Contribution margin ratio Print Done Enter any number in the edit fields and then click Check Answer. parts remaining Clear All Final Checkarrow_forward
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