Texts: Your answer is correct.
If Blue incurs exactly the same total fixed costs but produces and sells only 1,600,000 notebooks this coming year, what happens to the fixed cost per unit? In turn, what would the total cost per unit be? If the average selling price stays at $2.15, how much gross margin would be earned? (Round per unit answers to 2 decimal places, e.g. 15.25.)
Fixed costs
Increased
DV
$0.05 per unit
Total cost per unit
$70 per unit
Gross margin
$2,320,000
eTextbook and Media
Attempts: 2 of 3 used
(c)
If Blue reworks its equipment layout and processes to increase the top end of its relevant range of activity to 2,500,000 notebooks without incurring more fixed costs, what happens to the fixed cost per unit if it is able to make and sell that larger quantity of units? (Round per unit answers to 2 decimal places, e.g. 15.25.)
Fixed costs
per unit
Total cost per unit
per unit
Gross margin
eTextbook and Media