01:4634 Subn his Question: 2 pts 23 of 27 (19 complete) This Quiz: 55 pts po The

Question

01:4634 Subn his Question: 2 pts 23 of 27 (19 complete) This Quiz: 55 pts po The manager at Screaming Trees has been trying to calculate the portion of the company's overhead expenses that is foxed and the portion that is variable Over the past twelve months, the number of yards of mulch processed was highest in July, when the total monthly overhead costs totaled $31,000 for 35 000 yards of muich processed The lowest number of yards of mulch processed in the last twelve months occurred in October when total overhead costs ere S21.000? 26000 yards of nichprocessed What was the variable cost per yard? OA, SO89 Cs08 OD S0 90 2 8 5 6 3 2

Explanation / Answer

1) yards overhead cost highest 35,000 31,000 lowest 26,000 21,000 difference 9,000 10,000 variable cost per unit = 10,000/9000 1.111111 answer) option B $1.11 2) Variable cost per unit = 150,000/60,000 2.5 per unit fixed cost = 380,000-150,000 230000 production cost when 105,000 toys are produced variable cost (2.5*105,000)= 262500 Fixed cost 230,000 total production cost 492500 Answer) option A 492,500 3) Sales (300*740)= 222000 less:Variable expense cost of goods sold (300*500) 150000 sales commission 11100 161100 contribution margin 60900 less:fixed expense Rent expense 2,000 staff expense 2,100 4,100 net income 56,800 Answer ) option D $56,800

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