Answer:
a. $26
b. $23
c. $34
d. $29
e. $21
f. $11
g. $14
h. $11
Explanation:
a. Variable cost per unit.
Variable cost per unit = Variable Manufacturing Costs + Variable Non - Manufacturing Costs
= $12 + $9 + $2 + $3
= $26
b. Variable production cost per unit.
Variable production cost per unit = Variable Manufacturing Cost
= $12 + $9 + $2
= $23
c. Full cost per unit.
Full cost per unit = Manufacturing and Non - Manufacturing (Variable and Fixed)
= $12 + $9 + $2 + $3 + $47,500/23,750 units + $142,500/23,750 units
= $12 + $9 + $2 + $3 + $2 + $6
= $34
d. Full absorption cost per unit.
Full absorption cost per unit = Variable Manufacturing Costs + Fixed Manufacturing Costs
= $12 + $9 + $2 + $6
= $29
e. Prime cost per unit.
Prime cost per unit = Direct Manufacturing Costs'
= $12 + $ 9
= $ 21
f. Conversion cost per unit.
Conversion cost per unit = Direct Labor Costs + Overheads Costs
= $9 + $2
= $11
g. Contribution margin per unit.
Contribution margin per unit = Sales - Variable Costs
= $ 40 - $26
= $ 14
h. Gross margin per unit.
Gross margin per unit = Sales - Full absorption cost per unit
= $40 - $29
= $11
