Question

London Plastics sells a product for $15.00 per unit. The product requires $4.00 per unit in...

London Plastics sells a product for $15.00 per unit. The product requires $4.00 per unit in variable costs to produce it. The company plans on selling 12,000 units of this product. If the monthly fixed costs are $584,000. the company's average fixed costs per unit will be

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Average fixed cost per unit is calculated by dividing fixed costs by the number of units the company plans on selling.

Average fixed cost per unit = $ 48.67

Add a comment
Know the answer?
Add Answer to:
London Plastics sells a product for $15.00 per unit. The product requires $4.00 per unit in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • value: 4.00 points Lynch Company manufactures and sells a single product. The following costs were incurred...

    value: 4.00 points Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 13 7 1 1 $ 288,000 $ 198,000 During the year, the company produced 24,000 units and sold 20,000 units. The selling price of the company's...

  • Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...

    Shelhorse Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 190 100 % Variable expenses 76 40 % Contribution margin $ 114 60 % Fixed expenses are $343,000 per month. The company is currently selling 3,800 units per month. Required: The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 120 unit increase in monthly sales. What should be the overall...

  • Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning...

    Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount Per Unit $8.00 $5.00 $1.00 $6.00 $3.50 $2.50 $4.00 $1.00 Required: 1. For financial...

  • The Colin Division of Mochrie Company sells its product for $37 per unit. Variable costs per unit are...

    The Colin Division of Mochrie Company sells its product for $37 per unit. Variable costs per unit are: manufacturing, $14; and selling and administrative, $4. Fixed costs are: $420000 manufacturing overhead, and $57000 selling and administrative. There was no beginning inventory. Expected sales for next year are 60000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 60000 units or 70000 units. What would the manufacturing...

  • Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...

    Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $240 100 % Variable expenses 48 20 % Contribution margin $192 80% Fixed expenses are $160,000 per month. The company is currently selling 1,500 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $65. Since the new component would improve the company's product, the marketing manager predicts that monthly...

  • Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit...

    Nice Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 290 100 % Variable expenses 58 20 % Contribution margin $ 232 80 % Fixed expenses are $210,000 per month. The company is currently selling 2,000 units per month. Required: Management is considering using a new component that would increase the unit variable cost by $64. Since the new component would improve the company's product, the marketing manager...

  • Maple Enterprises sells a single product with a selling price of $75 and variable costs per...

    Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. C. Prepare a contribution margin income statement for the month of September when they will sell 900 units. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. d. How many units will Maple need to sell in...

  • Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning...

    Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount Per Unit $8.00 $5.00 $1.00 $6.00 $3.50 $2.50 $4.00 $1.00

  • Rhand Company has received an offer to supply 2,000 units of Product A to Ray Company...

    Rhand Company has received an offer to supply 2,000 units of Product A to Ray Company at a selling price of$15.00 per unit. Rhand company is already operating at full capacity. Manufacturing costs per unit of Product A are as follows – Direct manufacturing costs $5.00 Variable manufacturing overheads $2.00 Fixed manufacturing overheads $3.00 (at full capacity of 10,000 units) Variable selling costs $4.00 The firm currently sells its product in the regular market at $20.00 per unit. What is...

  • Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the...

    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 uniti Manufacturings Direct naterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expense 21 10 2 4 $1,060,000 557,000 The company sold 36,000 units...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT