WERNER COMPANY PRODUCES AND SELLS FOIL BANKING PANS TO RETAILER FOR 2.75 PER PAN, THE VARIABLE COST EQUAL 1.65 FIXED MANUFACTURING TOTALS= 11425 ADMINISTRATIVE COST TOTALS = 48350 Part 1 Fixed manufacturing costs $111,425 Fixed administrative costs $48,350 Total fixed costs $159,775 Selling price per unit $2.75 Variable costs per unit $1.65 Contribution margin per unit $1.10 Break-even units 145,250 Part 2 Variable costs per unit $1.65 Variable manufacturing costs per unit Part 3 Total fixed costs $159,775 Target operating income $13,530 Contribution margin per unit $1.10 Units needed to earn target operating income Part 4 Units needed to earn target profit Selling price per unit $2.75 Sales revenue needed to earn target operating income
WERNER COMPANY PRODUCES AND SELLS FOIL BANKING PANS TO RETAILER FOR 2.75 PER PAN, THE VARIABLE COST EQUAL 1.65 FIXED MANUFACTURING…
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