You 35 4 If 25000 units are cost per 6 M 25000 units are to

You 35 4. If 25,000 units are cost per 6. M 25,000 units are to support this level of production? TOSHIBA

Solution

1. Variable cost per unit = 19.5

2. variable cost per unit will not change with production volume, hence it is = 19.5

3. 409500

4. 487500

5.  

Step 1 total fixed costs:

since number of units produced = 21000, fixed manufacturing overhead per unit= 140300/21000=

6.

7. 140300

Since production volume level is 21000 to 25000 fixed costs in total will not change with in this production level

8. 140300

Since production volume level is 21000 to 25000 fixed costs in total will not change with in this production level

Variable cost per unit	Amount
Direct material	8.1
Direct labor	5.1
Variable manufacturing overhead	2.6
Sales commission	2.1
Variable administration overhead	1.6
Variable cost per unit	19.5