Glisan Corporation's Relevant Range of Activity Is 4,000 Units to 8,000

question 163

Essay

Glisan Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:
Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 6,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 6,000 units?
c. If 5,000 units are sold, what is the total amount of variable costs related to the units sold?
d. If the selling price is $19.10 per unit, what is the contribution margin per unit sold?
e. What incremental manufacturing cost will the company incur if it increases production from 6,000 to 6,001 units?

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Definitions:

Ptosis

A condition characterized by the drooping of one or both eyelids, which can be congenital or acquired.

Strabismus

A condition in which the eyes do not properly align with each other when looking at an object, leading to a lack of coordinated eye movement.

Blepharitis

An inflammation of the eyelid margins, often causing redness, itching, and dandruff-like scales.

Ptosis

A medical term used to describe drooping of the upper eyelid, which can affect one or both eyes.