Karpowicz 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.If the selling price is $21.40 per unit,what is the contribution margin per unit sold?
b.If 8,000 units are produced,what is the total amount of direct manufacturing cost incurred?
c.If 8,000 units are produced,what is the total amount of indirect manufacturing cost incurred?
d.What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?
Definitions:
Promisee
The individual or entity to whom a promise is made and who stands to benefit from the fulfillment of that promise.
Creditor Beneficiary
An individual or entity that benefits from a contract made between two other parties because of a debt owed to them.
Breach of Contract
The failure to perform any term of a contract, written or oral, without a legitimate legal excuse.
Resident
An individual who lives in a particular place or who has established domicile within a specific area or jurisdiction.
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