Karpowicz Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Required:
a. If the selling price is $21.40 per unit, what is the contribution margin per unit sold?
b. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
c. If 8,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
d. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Question

Karpowicz Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
  Required:
a. If the selling price is $21.40 per unit, what is the contribution margin per unit sold?
b. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
c. If 8,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
d. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Quizplus · Accepted Answer

The Answer of Karpowicz Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
  Required:
a. If the selling price is $21.40 per unit, what is the contribution margin per unit sold?
b. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
c. If 8,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
d. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Karpowicz Corporation's Relevant Range of Activity Is 7,000 Units to 11,000