Question

1. Based on predicted production of 25,900 units, a company anticipates $400,000 of fixed costs and $492,100 of variable costs. If the company actually produces 19,800 units, what are the flexible budget amounts of fixed and variable costs?

	------Flexible Budget------		------Flexible Budget at ------
	Variable Amount per Unit	Total Fixed Cost	25,900 units	19,800 units
Total budgeted costs

2. SBD Phone Company sells its waterproof phone case for $90 per unit. Fixed costs total $194,400, and variable costs are $36 per unit.

(1) Determine the contribution margin per unit.
				per unit
				per unit
	Contribution margin			per unit
(2) Determine the break-even point in units.
	Choose Numerator:	/	Choose Denominator:		=	Break Even Units
		/			=	Break even units
						0

Answer 1

what are the flexible budget amounts of fixed and variable costs?

	------Flexible Budget------ ------Flexible Budget at ------ Variable Amount per Unit Total Fixed Cost 25,900 units 19,800 units Variable cost per unit 19 492100 376200 Fixed cost 400000 400000 400000 Total budgeted costs 19 400000 892100 776200

2)

(1) Determine the contribution margin per unit. Sale price 90 per unit Variable cost 36 per unit Contribution margin 54 per unit (2) Determine the break-even point in units. Choose Numerator: / Choose Denominator: = Break Even Units Fixed cost / Contribution margin per unit = Break even units 194400 / 54 = 3600