Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per un

Question

3 years ago

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Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per un

it is $10. The variable non manufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed change?
A) $10,000B) $20,000C) $30,000
D) $60,000

Business

1 answer:

ratelena [41] · Answer 1 · 2022-04-28T13:51:02+03:00

Answer: C - $30,000

Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.

The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.

The selling price per unit is $50

To increase production by 1000 units

Total cost is $10 + $20 = $30

Total incremental cost = 1,000 * $30= $30,000