2015 5 At A decueduwebappsassess mentta akelaunchjspcourse a

(2015-) (5). At A d.ecu.edu/webapps/assess ment/ta ake/launch.jsp?course assessment_id- 500536 18course QUESTION 3 445464-1 &content-d-101; 16666-lastepa null At a production and sales level of 3,000 units, Munro Company incurred When 4,000 units of product are produced and sold the company\'s cost per unit is 32 027 O 24 O 29 QUESTION 4 Teiaz Co oMaikas Co 25,000 . 25,000 S 75,000 70,000 25,000 25,000 $100,000S Unit Sales Fized Cost Variable Cost Total Cost 0.0 130,000 $130,000 $130,000 130,000 Assume that al companies charge the same price per unit lf unit sales volume increases by 20% who has the largest prom? Kalan

Solution

1. The answer is 27 per unit, see how it comes,

Variable cost per unit = 36000/3000 = 12

Cost / per unit at 4000 units level = ( 4000x12+60000 )/4000

= 27/unit

2. The answer is Tejay Co

When the sales volume increases the variable cost will also will increase. The revised variable and fixed will be

The Lowest Total cost is in Tejay Co. Given that selling price per unit and Sales quantity is same..So thi gives largest profit

	Tejay	Kalan	Maria	Mahkas
Revised variable cost	30000x120%=36000	45000x120%=54000	55000x120%=66000	60000x120%=72000
Fixed cost	100000	85000	75000	70000
Total cost	136000	139000	141000	142000