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:

Quality

Refers to the standard of something measured against other things of a similar kind; the degree of excellence of something.

Psychological Test

A standardized measure of a sample of a person’s behavior.

Socioeconomic Status

Represents an individual's or group's economic and social position relative to others, based on income, education, and occupation.

Narcissism

A personality characteristic marked by an exaggerated feeling of self-worth, an intense desire for abundant attention and admiration, coupled with an absence of compassion towards other people.