106 a firm has fixed costs of 200000 and variable

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Chapter 2 / Exercise 2a
Exploring Macroeconomics
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106. A firm has fixed costs of $200,000 and variable costs per unit of $6. It plans on selling 40,000 units in the coming year. To realize a profit of $20,000, the firm must have a sales price per unit of at least a. $11.00. b. $11.50. c. $10.00. d. $10.50.
Hahn Corporation Hahn Corporation produces a single product that sells for $7.00 per unit. Standard capacity is 100,000 units per year; 100,000 units were produced and 80,000 units were sold during the year. Manufacturing costs and selling and administrative expenses are presented below. There were no variances from the standard variable costs. Any under- or overapplied overhead is written off directly at year-end as an adjustment to cost of goods sold. Fixed costs Variable costs Direct material $0 $1.50 per unit produced Direct labor 0 1.00 per unit produced Manufacturing overhead $150,000 0.50 per unit produced Selling & Administration expense 80,000 0.50 per unit sold Hahn Corporation had no inventory at the beginning of the year. 107. Refer to Hahn Corporation. In presenting inventory on the balance sheet at December 31, the unit cost under absorption costing is
108. Refer to Hahn Corporation. What is the net income under variable costing?
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Chapter 2 / Exercise 2a
Exploring Macroeconomics
Sexton
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109. Refer to Hahn Corporation. What is the net income under absorption costing?

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