please solve this question A factory can product...

60.1K

Verified Solution

Question

Accounting

please solve this question

image

A factory can product 240,000 units per year at its 100% capacity. The estimated production costs are given below: Direct material $400 per unit Direct labor $200 per unit Indirect expenses: Fixed $4,000,000 per year Variable $100 per unit Semi-variable $100,000 per year up to 60% capacity and $20,000 for every 20% increase in the capacity or part thereof. If the production program of the factory is as indicated below and the required profit is $2,000,000 for the year, determine the average selling price. First three months of the year 60% of capacity

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