The following annual per unit cost data at an activity level of 4,000 units has

Question

The following annual per unit cost data at an activity level of 4,000 units has been provided below The company produces and sells only one product 9 poires Per Unit 400 00 18 00 Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 20.00 2.00 5.00 3.00 Take each Option ndpe dnt ofthe mers esta' wnne Us? the tacts gven calculate amounts as d ected below unts You will be given facts for three dfferert options The relevat tange is 250-5 You must enter your answer in the following format: Sx,xxx Total fixed expenses believes

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Part-1 Total Units at current activity level 4000 Per Unit Total a Sales Revenue 400 1600000 b Sales Revenue 400 1600000 Less: Variable Cost: Direct Labor 18 72000 Direct Material 22 88000 Variable Manufacturing Overhead 4 16000 Variable Selling Expense 2 8000 Contribution Margin 1416000 c Total Fixed Expense: Fixed Manufacturing Overhead 20 80000 Fixed Selling Expense 5 20000 Fixed Administrative Expense 3 12000 Total Fixed Expense 112000 Part-2 Total Units at current activity level 4800 4000+(4000*20%) Per Unit Total a Sales Revenue (400-10%) 360 1728000 b Sales Revenue 360 1728000 Less: Variable Cost: Direct Labor 18 86400 Direct Material (22-15%) 18.7 89760 Variable Manufacturing Overhead 4 19200 Variable Selling Expense 2 9600 Contribution Margin 1523040 c Total Fixed Expense: Fixed Manufacturing Overhead 80000 Fixed Selling Expense 20000 Fixed Administrative Expense 12000 Total Fixed Expense 112000

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