Question: If Coronado 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






If Coronado 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 xed costs, what happens to the xed cost per unit if it is able to make and sell that larger quantity of units? (Round per unit answers to 2 decimal places. 2.3. 1525.} Fixed costs by $ ' per unit Total cost per unit $ ' per unit Gross margin $ ' If Coronado 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 $1.90, how much gross margin would be earned? (Round per unit answers to 2 decimal places, e.g. 15.25.) Fixed costs Increased by 0.10 per unit Total cost per unit $ 0.80 per unit Gross margin $ 1760000The salespeople at Coronado, a notebook manufacturer, commonly pressured operations managers to keep costs down so the companyr could give bigger discounts to large customers. Joseph, the operations supervisor, leaked the $0.70 total unit cost to salespeople, who were thrilled, since that was slightly lower than the previous year's unit cost. Budgets were not yet nalized for the upcoming year, so it was unclear what the target unit cost would be. Joseph knew the current year's operating capacity was two million notebooks, and Coronado produced and soldjust that many. The detailed breakdown of the $0.70 total unit cost is as follows. Direct material $0.05 Direct labor 0.15 Variable overhead 0.10 Fixed overhead 0.40 Total cost per unit $0.70
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