Balerio 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. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?
b. If 10,000 units are sold, what is the variable cost per unit sold?
c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold?
e. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

Question

Balerio 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. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?
b. If 10,000 units are sold, what is the variable cost per unit sold?
c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold?
e. 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 Balerio 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. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units?
b. If 10,000 units are sold, what is the variable cost per unit sold?
c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold?
d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold?
e. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

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