Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and...

90.2K

Verified Solution

Question

Accounting

image
image
image
image
image
Kubin Company's relevant range of production is 20,000 to 23,000 units. When it produces and sells 21500 units,its average costs per unit are as follows: Amount per Unit Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $8.00 s 5.00 2.50 s 6.00 s 4.se 2.00 s 1.50 Required: 1. What is the incremental manufacturing cost incurred if the company increases production from 21,500 to 21,501 units? 2. What is the incremental cost Incurred if the company increases production and sales from 21,500 to 21,501 units? 3. Assume that Kubin Company produced 21.500 units and expects to sell 21,200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 extra units that have been produced by the company and that would otherwise remain unsold, what is the Incremental manufacturing cost per unit incurred to sell these units to the customer? 4. Assume that Kubin Company produced 21,500 units and expects to sell 21,200 of them. If a new customer unexpectedly emerges and expresses interest in buying the 300 extra units that have been produced by the company and that would otherwise remain unsold, what incremental selling and administrative cost per unit is incurred to sell these units to the customer? Complete this question by entering your answers in the tabs below Prey 80f 10 Next > ch

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