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

question 19

Essay

Myklebust 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 the selling price is $20.20 per unit, what is the contribution margin per unit sold?d. If 7,000 units are produced, what is the total amount of direct manufacturing cost incurred?e. If 7,000 units are produced, what is the total amount of indirect manufacturing cost incurred?f. What incremental manufacturing cost will the company incur if it increases production from 6,000 to 6,001 units?

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Definitions:

Tree Surgeons

Professionals specialized in the care, diagnosis, and treatment of trees to prolong their health and safety.

Weekend Selling Activity

Commercial operations that specifically occur on weekends, often relating to retail or leisure services aiming to capitalize on increased consumer availability.

Hardware Merchants

Businesses specialized in selling tools, building materials, and related goods often to consumers and other businesses.

Share of Profits

A portion of the profits generated by a business or investment that is distributed to its investors, partners, or shareholders.