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Yakvenalex [24]
2 years ago
12

Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. T

he selling price and cost per unit data for 9,000 units of Fluoro2211 are as follows. Per Unit Data Selling Price $150 Direct Materials 20 Direct Labor 15 Variable Manufacturing Overhead 12 Fixed Manufacturing Overhead 30 Variable Selling 3 Fixed Selling and Administrative 10 Total Costs 90 Operating Margin $60 During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be: Group of answer choices $882,000. $980,000. $972,000. $1,080,000.
Business
1 answer:
dolphi86 [110]2 years ago
7 0

Answer:

d. $1,080,000

Explanation:

Contribution per unit = Selling price per unit - Variable cost per unit

Contribution per unit = Selling price per unit - ( Direct Materials + Direct Labor + Variable Manufacturing Overhead + Variable Selling )

Contribution per unit = $160 - ($22 + $15+ $12 + $3)

Contribution per unit = $160 - $52

Contribution per unit = $108 per unit

Contribution margin for the next year = $108 per unit * 10,000

Contribution margin for the next year = $1,080,000

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When you download and print the NCAA Basketball Tournament bracket (a paper to pick who you think will win the NCAA Men's Basket
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2 years ago
On June 30, a printing shop provides $1,000 of services to a customer to custom print restaurant menus. The customer is sent a b
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June 30

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2 years ago
Jack Simpson, contract negotiator for Nebula Airframe Company, is currently involved in bidding on a follow-up government contra
Sergeeva-Olga [200]

Answer: 5,882.5‬ hours

Explanation:

Cumulative Labor Hours to be planned for = Cumulative factor * Time of first unit

Cumulative Factor = Average learning rate for Number of units.

Learning rate from unit 1 to 2 = Labor hours required for 2nd unit / Labor Units required for 1st unit

= 2,250/2,500

= 0.9

Learning rate from unit 2 to 3 = Labor hours required for 3rd unit / Labor Units required for 2nd unit

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= 0.94

Average learning rate = (0.9 + 0.94) / 2

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Cumulative labor hours = 5.101 * 2,500

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= Cumulative time for all units - time for the first 3 units

= 12,752.5 - 2,500 - 2,250 - 2,120

= 5,882.5‬ hours

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