Karpowicz Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:
Required:
a. If the selling price is $21.40 per unit, what is the contribution margin per unit sold?
b. If 8,000 units are produced, what is the total amount of direct manufacturing cost incurred?
c. If 8,000 units are produced, what is the total amount of indirect manufacturing cost incurred?
d. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?
Definitions:
Courageous Person
An individual who displays bravery and willingness to face fear, pain, risk/danger, uncertainty, or intimidation.
Ayn Rand
A 20th-century Russian-American writer and philosopher best known for her philosophy of Objectivism and her novels "Atlas Shrugged" and "The Fountainhead."
Ethical Egoism
The thesis that people ought to act in their own self-interest.
Goldilocks Test
A metaphorical term used to describe a condition, situation, or decision that is 'just right', balancing all considerations optimally; derived from the Goldilocks and the Three Bears fairy tale.
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