Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Rose Company data Expense Average Cost per Unit Direct materials Direct labor Indirect materials $12 10 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 4 3 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?
Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Rose Company data Expense Average Cost per Unit Direct materials Direct labor Indirect materials $12 10 Fixed manufacturing overhead Variable manufacturing overhead Fixed selling and administrative expenses 4 3 8 Variable sales commissions 25 Using the cost data from Rose Company, answer the following questions: A. If 10,000 units are produced, what is the variable cost per unit? B. If 18,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I totally dont get how to get these answers no matter how hard i try! Can you please help
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Answer a:
Variable cost per unit:
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