AGER?AL ACCOUNTING (ACCT 1 Assignment Gradebook ORIONDownloadable eTextbook ent

Question

AGER?AL ACCOUNTING (ACCT 1 Assignment Gradebook ORIONDownloadable eTextbook ent FULL BACK CALCULA NEXT Question 1 Appliance Possible Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP's expected costs at production levels of 80,000, 95,000, and 110,000 units. Variable costs Manufacturing Administrative Selling $6 per unit $3 per unit $2 per unit Fixed costs Manufacturing Administrative $139,000 $79,000 get for each of the possible production levels: 80,000, 95,000, and 110,000 units. (List variable costs before fixed costs.)

Explanation / Answer

Activity level 80,000 95,000 110,000 production levels Variable costs manufacturing 6 480000 570000 660000 Administrative 3 240000 285000 330000 Selling 2 160000 190000 220000 total variable costs 11 880000 1045000 1210000 Fixed costs Manufacturing 139,000 139,000 139,000 administrative 79,000 79,000 79,000 total fixed costs 218,000 218,000 218,000 total costs 1,098,000 1,263,000 1,428,000 2) units to be sold = (fixed cost + target profit)/contribution margin per unit contribution margin per unit= SP - VC 16-11 5 per unit (218000+330500)/5 109700 units

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.