Balerio Corporation's Relevant Range of Activity Is 7,000 Units to 11,000

question 258

Essay

Balerio 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.For financial reporting purposes,what is the total amount of product costs incurred to make 9,000 units?
b.If 10,000 units are sold,what is the variable cost per unit sold?
c.If 10,000 units are sold,what is the total amount of variable costs related to the units sold?
d.If the selling price is $18.20 per unit,what is the contribution margin per unit sold?
e.What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

---

Definitions:

Cognitive-behavioral Therapy

A form of psychotherapy that emphasizes the importance of underlying thoughts in determining how we feel and behave, aiming to change negative patterns of thinking or behavior to combat psychological issues.

Family Therapy

Family therapy is a type of psychological counseling that helps family members improve communication and resolve conflicts.

Oppositional Defiant Disorder

A psychiatric disorder in children characterized by persistent patterns of angry, defiant, and vindictive behavior against authority figures.

Conduct Disorder

A mental disorder diagnosed in childhood or adolescence characterized by a repetitive and persistent pattern of behavior that violates the rights of others or major societal norms.