Answer:
3.69
Explanation:
We know,
The productivity in sales revenue/labor expense =
Given,
Sales revenue = Units sold × Sale price per unit
Sales revenue = 1,217 units × $1,700
Sales revenue = $2,068,900
labor expense = Total labor hours × wage rate per hour
labor expense = 46,672 × $12
labor expense = $560,064
Putting the values into the formula, We can get,
The productivity in sales revenue/labor expense =
The productivity in sales revenue/labor expense = 3.69
Answer:
a. $25.50
b. $9,725,000
c. Cash = 8,888.89 units
Accounting = 35,555.56 units
Explanation:
a. Variable cost per unit = material cost + labor cost = $18.50 + $7.00 = $25.50
b. Total cost = Fixed + Variable
Variable = $25.50 350,000 = $8,925,000
Fixed = $800,000
Total = $800,000 + $8,925,000 = $9,725,000.00
c. Cash break even point = (Fixed cost - Depreciation)/Contribution per unit
Fixed cost = $800,000
Depreciation = $600,000
Contribution per unit = $48 (Selling price) - $25.50 (Variable cost) = $22.5
Cash Break even point = ($800,000 - $600,000)/$22.5 = 8,888.89 units
Accounting Break Even Point = Total fixed cost/ Contribution per unit
=$800,000/$22.5 = 35,555.56 units
Final Answer
a. $25.50
b. $9,725,000
c. Cash = 8,888.89 units
Accounting = 35,555.56 units