Question

Exercise 1-10 Differential Costs and Sunk Costs [L01-5 0.73 9.00 s 6.00 s 3.50 $ 7.00 s 5.50 s 4.50 s 3.00 2.50 d 32,500 units and expects to sell 32,100 of them, If a new customer unex interest in buying the 400 extra units that have been produced by the company and that would otherwise remain cost per unit incurred to sell these units to the customer? 32,500 units and expects to sell 32,100 of them. If a new t would

Answer 1

Answer 1
Incremental manufacturing cost incurred if the company increases production from 32500 to 32501 units
Direct Materials	$9.00
Direct Labor	$6.00
Variable Manufacturing Overhead	$3.50
Total Incremental cost	$18.50
Answer 2
Incremental cost incurred if the company increases productionand sales from 32500 to 32501 units
Direct Materials	$9.00
Direct Labor	$6.00
Variable Manufacturing Overhead	$3.50
Sales Commission	$3.00
Variable administrative expense	$2.50
Variable cost per unit sold	$24.00
Answer 3
Incremental manufacturing per unit cost incurred to sell extra 400 units to the customer.
Direct Materials	$9.00
Direct Labor	$6.00
Variable Manufacturing Overhead	$3.50
Incremental manufacturing per unit cost	$18.50
Answer 4
Incremental selling and administrative cost per unit cost incurred to sell extra 400 units to the customer.
Sales Commission	$3.00
Variable administrative expense	$2.50
Variable cost per unit sold	$5.50