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Managerial Accounting ACC105101 06/07/2009 Week 3 Homework Assignment E5-6 1. Units produced and sold 60,000 80,000 100,000 Total costs: (80,000/60,000*150,00 0) (100,000/80,000*200,0 00) Variable costs $150,000 * $200,000 $250,000 Fixed costs 360,000 * 360,000 360,000 Total costs $510,000 * $560,000 $610,000 Cost per unit: (150,000/60,000) (510,000/60,000)- 2.50 (150,000/60,000) (560,000/80,000)-2.50 (150,000/60,000) (610,000/100,000)-2.50 Variable cost $2.50 $2.50 $2.50 Fixed cost 6.00 4.50 3.60 Total cost per unit $8.50 $7.00 $6.10 2. Sales (90,000 units $7.50 per unit)............................................. $675,000 Variable expenses (90,000 units $2.50 per unit)........................- 225,000 Contribution margin........................................................................ 450,000 Fixed expenses..............................................................................-360,000 Net operating income..................................................................... $ 90,000 P5-17 1. a. 6 b. 11 c. 1 d. 4 e. 2 f. 10 g. 3 h. 7 i. 9 2. Without knowing the behavior of cost patterns, a manager cant analyze it. The cost are always different. Cause and effect, something might occur to initiate a change in a pattern. Also allot of the times you are not going to know something until after it has occurred. E6-3 Total sales......................................... $300,000 Total variable expenses...................Total variable expenses.... View Full Document

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