Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units. When it ...

90.2K

Verified Solution

Question

Accounting

Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units. When it
produces and sells 9,000 units, its average costs per unit are as follows:
If the number of units Balerio produces more than 11,000(outside its relevant range)
Total fixed manufacturing overhead cost is $180,000.
Balerio believes that it can currently sell 12,000 units this year up from the 9,000 units
it produced last year.
If the per-unit selling price is $36.00.
Required
Which unit production level (9,000 units or 12,000 units) creates the higher net income
(lower net loss) for Balerio?
Note: Round "Per unit" answer to 2 decimal places.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students