Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What will be the monthly margin of safety (in dollars) if 1,800 units are sold each month? ( )
A: $82,500.
B: $70,500.
C: $12,000.
D: $16,500.
A: $82,500.
B: $70,500.
C: $12,000.
D: $16,500.
举一反三
- Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. What<br/>will be Mitchell's monthly operating income if 1,800 units are sold<br/>each month? ( ) A: $153,000. B: $136,500. C: $30,600. D: $14,100.
- Perez Company had the following information available: Expected Costs and Selling Price Based on 5,000 Units: Variable manufacturing costs per unit $32 Fixed manufacturing costs per unit $20 Selling price per unit $70 Expected production level 5,000 units In the flexible budget at 15,000 units, what is the total manufacturing cost?
- Beckham Company has the following information available: Selling price per unit $100 Variable cost per unit $55 Fixed costs per year $400,000 Expected sales per year 20,000 units What is the expected operating income for a year?
- An organisation manufactures a single product. The total cost of making 4,000 units is $20,000 and the total cost of making 20,000 units is $40,000. Within this range of activity the total fixed costs remain unchanged.What is the variable cost per unit of the product?
- Division Big does have excess capacity to produce Product XX. The division can sell Product XX for $10 per unit outside the company. Variable costs are $6 per unit. Division Small wants to purchase Product XX from Division Big to use in Product ZZ. The selling price of Product ZZ is $25 per unit and variable costs to finish the product after the transfer are $12 per unit. An outside supplier will sell Product XX for $12. What is the minimum transfer price for Division Big?