
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
expand_more
expand_more
format_list_bulleted
Question
None

Transcribed Image Text:When Addams Corporation produces and sells 4,200 units, its average costs per unit are shown in the table below. The company's
relevant range of activity is 3,000 to 7,000 units.
Average Cost per Unit
Direct materials
Direct labor
$6.60
$3.40
Variable manufacturing overhead $1.40
Fixed manufacturing overhead
$4.50
Fixed selling expense
$0.65
Fixed administrative expense
$0.50
Sales commissions
$0.40
Variable administrative expense $0.40
Required:
a. If 5,200 units are sold, what is the variable cost per unit sold?
b. If 5,200 units are sold, what is the total amount of variable costs related to the units sold?
c. If 5,200 units are produced, what is the average fixed manufacturing cost per unit produced?
d. If 5,200 units are produced, what is the total amount of fixed manufacturing cost incurred?
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by stepSolved in 2 steps with 1 images

Knowledge Booster
Similar questions
- Jeff, a 56 year old professor is subject to a 28% tax rate. He has had a family emergency and must withdraw $5,000 from his IRA to fund it. How much money will he owe the government for this withdrawal?arrow_forwardA compulsary legal and unilateral payment made to the government is known as _______arrow_forwardAnalyse how macro environmental factors ( PESTLE) affect a hotel organization.arrow_forward
Recommended textbooks for you
- Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSONEngineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
- Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage LearningManagerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage LearningManagerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education


Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education