# Chapter_4 - Exercise46(20minutes 1 \$150,000 = \$2.50perunit...

This preview shows pages 1–2. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 11/11/2011 for the course ACC 202 taught by Professor Sue during the Summer '10 term at Michigan State University.

### Page1 / 5

Chapter_4 - Exercise46(20minutes 1 \$150,000 = \$2.50perunit...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online