Assume the following information for a company that produced 10,000 units and sold 9,000 units during its first year of operations:    Per Unit   Per Year   Selling price   $ 200             Direct materials   $ 77             Direct labor   $ 50             Variable manufacturing overhead   $ 10             Sales commission   $ 8             Fixed manufacturing overhead           $ 300,000     Using variable costing, what is the company’s net operating income?

) Fixed costs are irrelevant in decisions about whether a product should be dropped.

Under absorption costing, a company had the following unit costs when 8,000 units were produced. Direct labor $ 8.50 per unit Direct material $ 9.00 per unit Variable overhead $ 6.75 per unit Fixed overhead ($60,000/8,000 units) $ 7.50 per unit Total production cost $ 31.75 per unit Compute the total production cost per unit under variable costing if 25,000 units had been produced.

Runyon Inc. reported the following results from last year’s operations:       Sales $ 16,800,000 Variable expenses   12,230,000 Contribution margin   4,570,000 Fixed expenses   3,394,000 Net operating income $ 1,176,000 ​ The company’s average operating assets were $7,000,000. ​ Last year’s turnover was closest to:  

A product sells for $200 per unit, and its variable costs per unit are $130. Total fixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold?

Assume the following information:     Amount   Per Unit   Sales $ 300,000       $ 40       Variable expenses   112,500         15       Contribution margin   187,500       $ 25       Fixed expenses   101,000                 Net operating income $ 86,500                   The dollar sales to break-even is:

Assume a company provided the following information:    Patient-Days Maintenance Cost High activity level (September)   3,500   $ 10,400   Low activity level (May)   2,500   $ 9,200   Using the high-low method, the mixed cost would be estimated using which of the following equations:

Assume the following information for a merchandising company:           Number of units sold   20,000   Selling price per unit $ 30   Variable selling expense per unit $ 3.5   Variable administrative expense per unit $ 3.0   Fixed administrative expenses $ 50,000   Beginning merchandise inventory $ 24,000   Ending merchandise inventory $ 19,000   Merchandise purchases $ 340,000   What is the contribution margin?

CTI Company’s direct materials costs are $4,200,000, its direct labor costs total $8,080,000, and its factory overhead costs total $6,080,000. Its conversion costs total:

Jam Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:       Direct materials $ 6,000 Direct labor $ 20,000 Rent on factory building $ 15,000 Sales salaries $ 25,000 Depreciation on factory equipment $ 8,000 Indirect labor $ 12,000 Production supervisor’s salary $ 15,000  Jam estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be: