[SOLVED] Cost-Volume-Profit
I need help with a Accounting question. All explanations and answers will be used to help me learn.
Sandhill Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
|
Output |
Rent |
Direct |
||
|
1,000 |
$6,550 |
$5,240 |
||
|
2,000 |
6,550 |
6,900 |
||
|
3,000 |
10,480 |
6,900 |
||
|
4,000 |
10,480 |
9,200 |
||
|
5,000 |
10,480 |
11,500 |
||
|
6,000 |
10,480 |
13,800 |
||
|
7,000 |
10,480 |
16,100 |
||
|
8,000 |
10,480 |
18,400 |
||
|
9,000 |
13,100 |
38,383 |
||
|
10,000 |
13,100 |
45,850 |
||
|
11,000 |
13,100 |
57,640 |
- Determine the relevant range of activity for this product.
A. The relevant range of activity for this product $,3000- 8,000 units
Just answer B and C only down below
B. Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places e.g. 2.25.)
Variable costs per unit $_________
C .Indicate the fixed cost within the relevant range
Fixed cost $_________
Show the calculation in a word document
