Chapter_4 - Exercise46(20minutes) 1....

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Exercise 4-6  (20 minutes) 1. The company’s variable cost per unit would be: $150,000 =$2.50 per unit. 60,000 units Taking into account the difference in behavior between variable and  fixed costs, the completed schedule would be: Units produced and sold 60,000 80,000 100,000 Total costs: 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: 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 *Given. 2. The company’s income statement in the contribution format would be: 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
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Chapter_4 - Exercise46(20minutes) 1....

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