Build_a_Spreadsheet_14_54

Build_a_Spreadsheet_14_54 - $825,000 $212,500 $1,037,500...

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DATA INPUT Monthly capacity 10000 medals per month Current production 7500 medals per month Price per medal $175.00 Variable Costs Manufacturing Direct Labor $375,000 Direct Material $262,500 Marketing $187,500 Total Variable Costs $825,000 Fixed Costs Manufacturing $275,000 Marketing $175,000 Total Fixed Costs $450,000 Total Costs $1,275,000 Variable cost per unit $110.00 Fixed cost per unit $60.00 Average unit cost $170.00 Special Order 2500 medals ordered $100 per medal SOLUTION Current Monthly Production Special Order Combined Production Units produced 7500 2500 10000 Sales $1,312,500 a $250,000 b $1,562,500 Variable costs: Direct labor $375,000 $125,000 c $500,000 Direct material $262,500 $87,500 d $350,000 Marketing $187,500 $- $187,500 Total Variable Costs
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Unformatted text preview: $825,000 $212,500 $1,037,500 Fixed Costs Manufacturing $275,000 $- $275,000 Marketing $175,000 $- $175,000 Total Fixed Costs $450,000 $- $450,000 Total Costs $1,275,000 $212,500 $1,487,500 Income before tax $37,500 $37,500 $75,000 Cost per units Variable e $110.00 $85.00 $103.75 Fixed f $60.00 $- $45.00 Average unit cost g $170.00 $85.00 $148.75 a $175 x 7500 units = $1312500 b $100 x 2500 units = $250000 c ($375000 / 7500 units) x2500 units = $125000 d ($262500 / 7500 units) x2500 units = $87500 e Total variable cost / units produced = variable incremental cost per unit f Total fixed cost / units produced = fixed cost per unit g Total cost / units produced = average cost per unit...
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This note was uploaded on 02/29/2012 for the course E 101 taught by Professor Sfere during the Spring '12 term at Abilene Christian University.

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