SOLVED: A company produces a single product. Variable production costs are 12.50 per unit and variable selling and administrative expenses are3.50 per unit. Fixed manufacturing overhead totals 41,000 and fixed selling and administration expenses total45,000. Assuming a beginning inventory of zero, production of 4,500 units and sales of 3,850 units, the dollar value of the ending inventory under variable costing would be:

Production Costs: What They Are and How to Calculate Them

A company manufactures a single product. Budget and standard cost details for next year include: Selling price per unit 24.00 Variable production cost per unit 8.60 Fixed production costs 650,000 Fixed selling and distribution costs 230,400 Sales commission 5 % of selling price Sales 90,000 units Required: (a) Calculate the break-even point in units. (b) Calculate the percentage by which the budgeted sales can fall before the company begins t