(2015-) (5). At A d.ecu.edu/webapps/assess ment/ta ake/launch.jsp?course assessm

Question

(2015-) (5). At A d.ecu.edu/webapps/assess ment/ta ake/launch.jsp?course assessment_id- 500536 18course QUESTION 3 445464-1 &content-d-101; 16666-lastepa null At a production and sales level of 3,000 units, Munro Company incurred When 4,000 units of product are produced and sold the company's cost per unit is 32 027 O 24 O 29 QUESTION 4 Teiaz Co oMaikas Co 25,000 . 25,000 S 75,000 70,000 25,000 25,000 $100,000S Unit Sales Fized Cost Variable Cost Total Cost 0.0 130,000 $130,000 $130,000 130,000 Assume that al companies charge the same price per unit lf unit sales volume increases by 20% who has the largest prom? Kalan

Explanation / Answer

1. The answer is 27 per unit, see how it comes,

Variable cost per unit = 36000/3000 = 12

Cost / per unit at 4000 units level = ( 4000x12+60000 )/4000

= 27/unit

2. The answer is Tejay Co

When the sales volume increases the variable cost will also will increase. The revised variable and fixed will be

The Lowest Total cost is in Tejay Co. Given that selling price per unit and Sales quantity is same..So thi gives largest profit

Tejay Kalan Maria Mahkas Revised variable cost 30000x120%=36000 45000x120%=54000 55000x120%=66000 60000x120%=72000 Fixed cost 100000 85000 75000 70000 Total cost 136000 139000 141000 142000

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