The following information is available for each unit of the finished product pro

Question

The following information is available for each unit of the finished product produced and sold:
Sales price
55SR
Variable manufacturing cost
15
Fixed manufacturing cost
10
Variable marketing and administrative cost
4
Fixed marketing and administrative cost
2
The unit fixed manufacturing cost and fixed marketing and administrative cost are based on an estimated volume of 4,000 units produced and sold.
Determine full absorption cost, variable cost, full cost, gross margin, and operating profit per unit.

Explanation / Answer

All the expenditure cost will add to the production cost. And if its per unit thn multiply with no. of units. Fixed cost will be fixed..n independent of any variables...ie. units produced.

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