Question
In: Accounting
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological testing services:
| Sales price per unit (1 unit = 1 test plus feedback to client) | $ | 320 | |
| Fixed costs (per month): | |||
| Selling and administration | 18,000 | ||
| Production overhead (e.g., rent of testing facilities) | 22,500 | ||
| Variable costs (per test): | |||
| Labor for oversight and feedback | 165 | ||
| Outsourced test analysis | 19 | ||
| Materials used in testing | 7 | ||
| Production overhead | 9 | ||
| Selling and administration (e.g., scheduling and billing) | 14 | ||
| Number of tests per month | 2,000 | tests | |
Required:
Calculate the amount for each of the following (one unit = one test) if the number of tests is 2,000 per month. Also calculate if the number of tests decreases to 1,250 per month. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)
2,000 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 unit.=
f.Conversion cost per unit.=
g.Contribution margin per unit.=
h.Gross margin per unit.=
1250 Test
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 unit.=
f.Conversion cost per unit.=
g.Contribution margin per unit.=
h.Gross margin per unit.=
Solutions
ekkarill92 answered 9 months agoRelated Solutions
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)
$
320
Fixed costs (per month):
Selling and administration
16,000
Production overhead (e.g., rent of testing facilities)
20,000
Variable costs (per test):
Labor for oversight and feedback
160
Outsourced test analysis
19
Materials used in testing
6
Production overhead
15
Selling and administration (e.g., scheduling and billing)
16
Number of tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)
$
330
Fixed costs (per month):
Selling and administration
20,000
Production overhead (e.g., rent of testing facilities)
20,000
Variable costs (per test):
Labor for oversight and feedback
170
Outsourced test analysis
21
Materials used in testing
5
Production overhead
15
Selling and administration (e.g., scheduling and billing)
17
Number of tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit (1...
The following data apply to the provision of psychological testing
services:
Sales price
per unit (1 unit = 1 test plus feedback to client)
$
340
Fixed costs
(per month):
Selling and
administration
16,000
Production
overhead (e.g., rent of testing facilities)
25,000
Variable costs
(per test):
Labor for
oversight and feedback
145
Outsourced
test analysis
15
Materials used
in testing
6
Production
overhead
11
Selling and
administration (e.g., scheduling and billing)
20
Number of
tests per month
2,000
tests
Required:...
The following data apply to the provision of psychological testing services: Sales price per unit...
The following data apply to the provision of psychological
testing services:
Sales price per unit (1 unit = 1 test plus feedback to
client)$300
Fixed costs (per month):
Selling and administration 20,000
Production overhead (e.g., rent of testing facilities)
17,500
Variable costs (per test):
Labor for oversight and feedback 165
Outsourced test analysis 17
Materials used in testing 7
Production overhead 12
Selling and administration (e.g., scheduling and billing) 14
Number of tests per month 2,000tests
Required:
Calculate the...
Martin Mfg produces 1000 lens per month. The following per unit data apply for sales. Direct...
Martin Mfg produces 1000 lens per month. The following per unit
data apply for sales.
Direct materials$400; Direct labor$25; Variable overhead $50 and
Fixed overhead $60.
The plant has capacity for 1500 lens.
Solve:
(a)What is the total cost of producing 1000 lens?
(b) What is the total cost of producing 1200 lens and
(c) What is the per unit cost of producing 1200 lens? (Budgeted
overhead is $90,000).
1.A company has provided the following data: Sales 12,000 units Sales price $100 per unit Variable...
1.A company has provided the following
data:
Sales
12,000 units
Sales price
$100 per unit
Variable cost
$50 per unit
Fixed cost
$300,000
If
the dollar contribution margin per unit is increased by 10%, total
fixed cost is decreased by 20%, and all other factors remain the
same, by how much will net income increase?
2. Hamada Company
sells a single product. The product has a selling price of $100 per
unit and variable expenses of 80% of sales. If the...
A company has the following information: Unit sales 13,400 Sales price per unit $...
A company has the following information:
Unit sales
13,400
Sales price per unit
$ 90.00
Variable costs per unit $ 40.00
Fixed costs $
500,000
A. What is the company’s contribution margin per unit? B. What
is the company’s total contribution margin? C. What is the
company’s operating income? D. What is the company’s margin of
safety in units? E. If the company had a target operating income of
$636,000, what would be the target sales in...
CVP Analysis Data Unit sales 20,000 units Selling price per unit $60 per unit Variable...
CVP Analysis
Data
Unit sales
20,000
units
Selling price per unit
$60
per unit
Variable expenses per unit
$45
per unit
Fixed expenses
$240,000
Enter a formula into each of the cells marked with a ?
below
Review Problem: CVP Relationships
Compute the CM ratio and variable expense
ratio
Selling price per unit
?
per unit
Variable expenses per unit
?
per unit
Contribution margin per unit
?
per
unit
CM ratio
?
Variable expense ratio
?
Compute the...
Data 4 Unit sales 30,000 units 5 Selling price per unit $60 per unit 6 Variable...
Data
4
Unit sales
30,000
units
5
Selling price per unit
$60
per unit
6
Variable expenses per unit
$30
per unit
7
Fixed expenses
$810,000
What is the break-even in dollar
sales?
(b)
What is the margin of safety percentage?
(c)
What is the degree of operating leverage? (Round your
answer to 2 decimal places.)
3.
Using the degree of operating leverage and without changing
anything in your worksheet, calculate the percentage change in net
operating...
Intercontinental, Inc., provides you with the following data for its single product: Sales price per unit...
Intercontinental, Inc., provides you with the following data for
its single product:
Sales price per unit
$
51.00
Fixed costs (per month):
Selling, general, and administrative (SG&A)
900,000
Manufacturing overhead
1,800,000
Variable costs (per unit):
Direct labor
6.00
Direct materials
13.00
Manufacturing overhead
9.00
SG&A
5.00
Number of units produced per month
300,000
units
Required:
Compute the amounts for each of the following assuming that both
production levels are within the relevant range. (Do not
round intermediate calculations. Round your...
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