EV
Verdana
Regular
12
B
100v
9.X Company estimates the following for its three products for 2018:
Product A B C
Units Sold SP VC 7,750 $33.18 $25.40 35,650 $10.38 $5.63 21,550 $19.77 $8.36
Fixed costs in 2018 are expected to be $720,000. What is the expected weighted average contribution margin per unit in 2018?
10. In 2017, X Company's profits after taxes were $174,000. In 2018, the selling price is expected to be $44.20, the variable cost per unit is expected to be $22.50, and total fixed costs are expected to be $189,000.
11. X Company is considering modifying one of its main products next year that would make it more attractive to customers. Financial information for the product for this year was as follows:
Selling price Variable costs per unit Total fixed costs
$9.42 $3.40 $10,120
If it modified the product, X Company could increase the selling price by $2.14, and unit sales for the modified product would still be the same as current product unit sales. However, fixed costs would increase to $14,580. At what unit sales level would X Company be indifferent between modifying the product and not modifying it?
Questions 12 and 13 refer to the following information: X Company is considering buying a part next year that they currently make. This year's production costs for 3,400 units were:
Total $10,914 $10,744 $15,300
Per-Unit $3.21 $3.16 $4.50
Direct materials Direct labor Variable overhead
