Arman Corporation's Relevant Range of Activity Is 3,000 Units to 7,000

question 213

Essay

Arman Corporation's relevant range of activity is 3,000 units to 7,000 units.When it produces and sells 5,000 units,its average costs per unit are as follows:
Required:
a.If 6,000 units are produced,what is the total amount of fixed manufacturing cost incurred?
b.If 6,000 units are produced,what is the total amount of manufacturing overhead cost incurred? What is this total amount expressed on a per unit basis?
c.If 4,000 units are produced,what is the total amount of direct manufacturing cost incurred?
d.If 4,000 units are produced,what is the total amount of indirect manufacturing cost incurred?

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Definitions:

Growth Strategy

A plan of action designed to increase the size, revenue, or market share of a business.

Organization's Culture

The shared values, beliefs, and practices that shape the social and psychological environment of a business organization.

Values

Core beliefs or standards that guide the behavior and decision-making processes of individuals and organizations.

Accomplishes

Achieves or completes successfully.