Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

The cost per unit of a product $160 (75% variable), when production is 10,000 units. When the production increases by 25%, the CPU will be $ _

Accounting Auditing Cost Accounting Financial Accounting managerial accounting
user-image
Question added by BASKAR SUNDARAM , Manager - Accounts & Finance , at the 3 Decades Experienced & the largest Industrial Contracting Company in Middle East.
Date Posted: 2015/01/04
Upvote (2) Views (8) Followers (5) Answers (5) Report Question
Write an Answer
Register now or log in to answer.
Jenneth Mazo
by Jenneth Mazo , Accounting Manager , Frosch Philippines Travel, Inc.01

Cost per unit is $152 = $1,900,000/12,500 (Variable cost is $1,500,000 & Fixed cost is $400,000)

Fawzy Ahmed Salim El-Shabiby
by Fawzy Ahmed Salim El-Shabiby , Accountant , Servtel Information, Security, and Telecommunication Network Limited

Ans: $152

variable cost: 160*75%= $120

fixed cost:   160-120= $40    total fixed cost:40*10000= $400,000

cost per unit for production of12500 units: 120 +400,000/12500=    $152

Aneesh T. G.
by Aneesh T. G. , Accountant and Auditor , ROY K. PAUL FCA, CHARTERED ACCOUNTING FIRM

1500000+400000=1900000/12500=15.2           (125/100)=12.5

ie, $152

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Cost per unit = $152

CA Sagar satishbhai desai
by CA Sagar satishbhai desai , Accounts Manager , Rigid Group

ONE HUNDRED FIFTY TWO$

Write Your Answer
More Questions Like This

Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.

Get Help