What is the unit product cost under variable costing

Assignment Help Operation Management

Reference no: EM131866013

Question: Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. Variable costs per unit: Manufacturing: Direct materials $ 21 Direct labor $ 10 Variable manufacturing overhead $ 2 Variable selling and administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 1,060,000 Fixed selling and administrative expenses $ 557,000 _______. The company sold 36,000 units in the East region and 12,000 units in the West region. It determined that $270,000 of its fixed selling and administrative expenses is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

1. What is the unit product cost under variable costing?

2. What is the unit product cost under absorption costing?

3. What is the company's total contribution margin under variable costing?

4. What is the company's net operating income (loss) under variable costing?

5. What is the company's total gross margin under absorption costing?

6. What is the company's net operating income (loss) under absorption costing?

7. What is the company's break-even point in unit sales?

8. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit sales?

9. What would have been the company's variable costing net operating income (loss) if it had produced and sold 48,000 units?

10. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 48,000 units?

Reference no: EM131866013

Questions Cloud

How does antibiotic resistance develop : How does antibiotic resistance develop? What complications can occur from antibiotic resistance, both in humans and in livestock?

What is the expected return of the portfolio : Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom. What is the expected return of the portfolio?

What cause multiple sclerosis : What cause multiple sclerosis and how does it affect the nervous system? What are the treatments and how many treatment options

Discuss myopia-hyperopia-presbyopia and astigmatism : Discuss myopia, hyperopia, presbyopia, and astigmatism and explain what occurs within each condition.

What is the unit product cost under variable costing : Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and West regions. The following information pertains.

What is heuser after-tax cost of debt : If its marginal tax rate is 40%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places

Describe the clinical signs that would be associated : Describe the clinical signs that would be associated with blockage of the deep branches of the right posterior spinal artery in the mid thoracic region

What is the yield on four year security with no maturity : An analyst is evaluating securities in a developing nation where the inflation rate is very high. what is the yield on a 4-year security with no maturity,

Determine possible conditions that might develop in a baby : Prenatal and genetic testing are both used to help determine possible conditions that might develop in a baby.

User Account

All Pages