2.Tynex, Inc., a manufacturing company produces 80,000 units of product A at a t
ID: 2634370 • Letter: 2
Question
2.Tynex, Inc., a manufacturing company produces 80,000 units of product A at a total cost of $2.4 million. Total fixed costs are $1.4 million. If the company increases production by 25% and uses a 19% markup, the price per unit will be: A) $31.54 B) $37.10 C) $30.80 D) $51.80
Use the following to answer questions 3-4:
XTZ Company's market for the Model 55 has changed significantly, and XTZ has had to drop the price per unit from $265 to $125. There are some units in the work in process inventory that have costs of $150 per unit associated with them. XTZ could sell these units in their current state for $100 each. It will cost XTZ $10 per unit to complete these units so that they can be sold for $125 each.
3. A new employee looks at the analysis and exclaims,
Explanation / Answer
2) C.$30.80
3) A- Net income will increase by $35 per unit for each unit discarded.
4) C- $10 per unit if they sell the units in their current state.
10) D- All three components have equal importance.
12) D- 20,000 units
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