| Requirement 1 | ||||||
| Units produced and sold | ||||||
| 80,000 | 100,000 | 120,000 | ||||
| Total costs: | ||||||
| Variable Costs | $240,000 | (100,000x3) | $300,000 | (120,000x3) | $360,000 | |
| Fixed Costs | 320,000 | 320,000 | 320,000 | |||
| Total Costs | $560,000 | $620,000 | $680,000 | |||
| Cost per unit: | ||||||
| Variable Cost | (240,000/80,000) | 3.00 | (300,000/100,000) | 3.00 | (300,000/120,000) | 3.00 |
| Fixed Cost | (320,000/80,000) | 4.00 | (320,000/100,000) | 3.20 | (320,000/120,000) | 2.67 |
| Total cost per unit | 7.00 | 6.20 | 5.67 |
| Requirement 2 | ||
| Income statement for the year | ||
| Sales | (110,000*6.5) | 715,000 |
| Variable costs | (110,000*3) | 330,000 |
| Contribution | 385,000 | |
| Fixed costs | 320,000 | |
| Net Income | 65,000 |
Hough Company manufactures and sells a single product. A partially completed schedule of the company's total...
Hough Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units produced and sold 80,000 100,000 120,000 Total costs: Variable costs $240,000 ? ? Fixed costs 320,000 ? ? Total costs $560,000 2 ? Cost per unit: Variable cost ? ? ? Fixed cost ? ? 2 Total cost per unit 2 2...
Fuided Example connec Hough Company manufactures and sells a single product. A partially completed schedule of the company's total and per unit costs over a relevant range of 80,000 to 120,000 units produced and sold each year is given below: Units produced and sold 80,000 100,000 120,000 $240,000 320,000 $560,000 ? ? ? Total costs: Variable costs Fixed costs Total costs Cost per unit: Variable cost Fixed cost Total cost per unit ? ? 2 ? ? ? ? ?...
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