Differential Costs and Sunk Costs Show
Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 20,000 to 20,001 units? 2. What is the incremental cost incurred if the company increases production and sales from 20,000 to 20,001 units? 3. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 20,000 units and expects to sell 19,800 of them. If a new customer unexpectedly emerges and expresses interest in buying the 200 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? 'Hixson Company manufactures and sells one product for $34 per unit The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units its unit costs are as follows: Amount Per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? What is the total amount period costs incurred to sell 25,000 units? 2. If 24,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places:) 3. If 26,000 units are produced, what is the variable manufacturing cost per unit produced? What is the average fixed manufacturing cost per unit produced? (Round your answers to 2 decimal places:) 4. If 27,000 units are produced what are the total amounts of direct and indirect manufacturing costs incurred t0 support this level of production? What - total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round your answer t0 2 decimab places ) 6. What is Hixson'$ contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2 decimal places and "Contribution margin ratio" to decimal place:)' Recommended textbook solutions Essentials of Investments9th EditionAlan J. Marcus, Alex Kane, Zvi Bodie 689 solutions Intermediate Accounting14th EditionDonald E. Kieso, Jerry J. Weygandt, Terry D. Warfield 1,471 solutions
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Fundamentals of Financial Management, Concise Edition10th EditionEugene F. Brigham, Joel Houston 777 solutions 6.Award: 10 out of 10.00 points10 out of 10.00 pointsKubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs perunit are as follows:Amount per UnitDirect materials$8.80Direct labor$5.80Variable manufacturing overhead$3.30Fixed manufacturing overhead$6.80Fixed selling expense$5.30Fixed administrative expense$4.30Sales commissions$2.80Variable administrative expense$2.30Required:1. What is the incremental manufacturing cost incurred if the company increases production from 29,750 to 29,751 units?2. What is the incremental cost incurred if the company increases productionandsales from 29,750 to 29,751 units?3. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges andexpresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, whatis the incremental manufacturing cost per unit incurred to sell these units to the customer?4. Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedly emerges andexpresses interest in buying the 380 extra units that have been produced by the company and that would otherwise remain unsold, whatincremental selling and administrative cost per unit is incurred to sell these units to the customer?Score:Score:80/80Points100%±Required 2Required 4²Complete this question by entering your answers in the tabs below.Assume that Kubin Company produced 29,750 units and expects to sell 29,370 of them. If a new customer unexpectedlyemerges and expresses interest in buying the 380 extra units that have been produced by the company and that wouldotherwise remain unsold, what is the incremental manufacturing cost per unit incurred to sell these units to the customer?Required 1Required 2Required 3Required 4Incremental manufacturing cost$0³Garrison 16e Rechecks 2017-09-18ReferencesWorksheetDifficulty: 1 EasyLearning Objective: 01-05 Understand cost classificationsused in making decisions: differential costs, sunk costs,and opportunity costs. What is the incremental manufacturing cost incurred if the company increases production?Incremental cost is the total cost incurred due to an additional unit of product being produced. Incremental cost is calculated by analyzing the additional expenses involved in the production process, such as raw materials, for one additional unit of production.
How do you calculate incremental manufacturing cost?To determine the incremental cost, calculate the cost difference between producing one unit and the cost of producing two of them. Take the total cost of producing two units ( $180.00) and subtract the cost of producing one unit ($100.00) = $80.00.
What total incremental manufacturing cost will Martinez incur if it increases production from 10000 to 10001 units?The total incremental costs Martinez will incur if it increases production from 10,000 to 10,001 units is $11. The next step is to determine the incremental cost: Incremental cost of production = Unit variable cost × (Units increased) Incremental cost of production = $11 × 1 unit.
How do you calculate total fixed manufacturing cost incurred?To calculate total manufacturing cost you add together three different cost categories: the costs of direct materials, direct labour and manufacturing overheads. Expressed as a formula, that's: Total manufacturing cost = Direct materials + Direct labour + Manufacturing overheads.
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What is the incremental manufacturing cost incurred if the company increases production from 20 000
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