Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.2. (d) Unit variable cost for direct materials eTextbook and Media Indicate the fixed cost within the relevant range. Fixed cost SA $ 2.40 per unit

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.25.)
(d)
Unit variable cost for direct materials
e Textbook and Media
$
Indicate the fixed cost within the relevant range.
Fixed cost $
2.40
per unit
Transcribed Image Text:Calculate the unit variable costs within the relevant range. (Round answer to 2 decimal places eg. 2.25.) (d) Unit variable cost for direct materials e Textbook and Media $ Indicate the fixed cost within the relevant range. Fixed cost $ 2.40 per unit
Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or
output as follows.
Output
in Units
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Rent
Cost
11.000
$5,290
5,290
8,464
8,464
8,464
8,464.
8,464
8.464
10.580
10,000 10,580
10.580
Direct
Materials
$4,200
7,200
7,200
9,600.
12,000
14,400
16.800
19,200
30.999
37,030
46.552
Transcribed Image Text:Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 10.580 10,000 10,580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552
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