1000 points The following data apply to the provision of psy

10.00 points The following data apply to the provision of psychological testing services $ 350 Sales price per unit (1 unit = 1 test plus feedback to client) Fixed costs (per month) Selling and administration Production overhead (eg., rent of testing facilities) 18,000 22,000 Variable costs (per test) 130 21 Labor for oversight and feedback Outsourced test analysis Materials used in testing Production overhead Selling and administration (e.g., scheduling and billing) Number of tests per month 15 500 tests Required: Calculate the amount for each of the following (one unit = one test) if the number of tests is 50 Also caiculate if the number of tests decreases to 400 per month. 500 Tests400 Tests a Variable production cost per unit b Variable cost per unit. c Full cost per unit d Full absorption cost per unit e Prime cost per unt. tConversion cost per unit - Icontribution margin per unit h Gross maroin per unit

Solution

Solution:

Calculation of the Amount for each of the following, if the Number of Tests if 500 Per Month:

Calculation of the Amount for each of the following, if the Number of Tests if 400 Per Month:

		500 Tests
a	Variable Production Cost Per Unit ($130 + $21 + $3 + $8)	$162
b	Variable Cost Per Unit ($162 + $15)	$177
c	Full Cost Per Unit [$177 + ($40,000/500 Units)]	$257
d	Full absorption cost per unit [$162 + ($22,000/500 Units)]	$206
e	Prime cost per unit (Materials + Labor + Outsource) ($130 + $21 + $3)	$154
f	Conversion cost per unit (Labor + Overhead + Outsource) ($130 + $8 +($22,000 / 500) + $21)	$203
g	Contribution margin per unit ($350 - $177)	$173
h	Gross margin per unit ($350 - full absorption cost of $206)	$144