Question

1)         Jackmaster Equipment is an up-scale, higher-priced, specialty road construction equipment maker based in Irvine, California. The management accountant for Jackmaster compiled information for various levels of output in units, the relevant range for this company is estimated from 0 – 9,000 units. Production above this output incurs additional variable cost per unit of $15,000, additional fixed selling costs of $2,000,000 and additional fixed manufacturing costs of $20,000,000. :

                                                                        OUTPUT

                                                3,000                      5,000                       8,000                10,000

Variable mfg. costs       $182,000,000                                                                                        

Fixed mfg. costs                                               255,000,000                                                     

Variable sell. costs        56,000,000                                                                                        

Fixed sell. costs               12,000,000                                                                                        

Total costs                                                                                                                               

Sales price per unit               160,000                        160,000                   160,000             160,000

Unit cost                                                                                                                                  

Profit per unit                                                                                                                           

Required:
Rounding all calculations to the nearest dollar, complete the missing information with the correct figures

Answer 1