Reference no: EM13878615

The following data apply to the provision of psychological testing services.

Sales price per unit (1 unit _ 1 test plus feedback to client).................... $ 600
Fixed costs (per month):
Selling and 
administration....................................................................... 40,000
Production overhead (e.g., rent of testing 
facilities)................................ 60,000
Variable costs (per test):
Labor for oversight and 
feedback.......................................................... 240
Outsourced test 
analysis......................................................................... 40
Materials used in 
testing......................................................................... 10
Production 
overhead............................................................................... 20
Selling and administration (e.g., scheduling and billing)........................ 30
Number of tests per 
month......................................................................1,000 tests

Required:
Give the amount for each of the following (one unit = one test):
a. Variable production cost per unit.
b. Variable cost per unit.
c. Full cost per unit.
d. Full absorption cost per unit.
e. Prime cost per unit.
f. Conversion cost per unit.
g. Contribution margin per unit.
h. Gross margin per unit.
i. Suppose the number of units decreases to 800 tests per month, which is within the relevant range. Which parts of (a) through (h) will change? For each amount that will change, give the new amount for a volume of 800 tests.