Cost Problem 12-24 - Problem 12-24 Cost II Selling price...

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Problem 12-24 Cost II Selling price per unit $40 Variable Expenses per unit ($9.50+10+2.80+1.70) 24 Contribution Margin per unit $16 Increased unit sales (80,000x25%) 20,000 Contribution margin per unit x $16 Incremental contribution margin $320,000 Less: added fixed selling expense -$150,000 Incremental NOI $170,000 Yes, the increase in fixes selling expense would therefore be justified. 2) The break-even price per unit Variable production cost per unit $22.30 Import duties ($14,000/20,000 units) $0.70 Shipping cost per unit $1.50 Break-even price per unit $24.50 3) Determine impact on NOI Keep the Plant Open Close the Plant Sales (5,000units x $40 per unit) $200,000 $0 Variable expenses (5,000 units x $24 per unit) -$120,000 $0 Contribution margin $80,000 $0 Fixed expenses: Fixed manufacturing overhead cost: $400,000 x 3/12 100,000 $400,000 x 3/12 x 60% 60,000 Fixed selling expense:

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