Question: Variable and Absorption Costing During its first year, Walnut, Inc., showed an $63 per-unit profit under absorption costing but would have reported a total profit

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $63 per-unit profit under absorption costing but would have reported a total profit $56,000 less under variable costing. If production exceeded sales by 500 units and an average contribution margin of 62.5% was maintained, what is the apparent:

a. Fixed cost per unit?

$Answer per unit

b. Sales price per unit?

$Answer per unit

c. Variable cost per unit?

$Answer per unit

d. Unit sales volume if total profit under absorption costing was $630,000?

Answer units

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Lets solve the problem step by step To solve this we need to understand the difference between absorption costing and variable costing Under absorptio... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Variable and Absorption Costing During its first year, Concord, Inc., showed an $30 per-unit profit under absorption costing but would have reported a total profit $21,000 less under variable...

Variable and Absorption Costing During its first year. Walnut, Inc., showed an $18 per-unit profit under absorption costing but would have reported a total profit $16,000 less under variable costing....

How do I determine (a)? Variable and Absorption Costing During its first year, Walnut, Inc., showed an $36 per-unit profit under absorption costing but would have reported a total profit $32,000 less...

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not complete Points out of 4.00 P Flag question Variable and Absorption Costing During its first year, Walnut, Inc., showed an $18 per-unit profit...

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $45 per-unit profit under absorption costing but would have reported a total profit $40,000 less under variable costing....

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $54 per-unit profit under absorption costing but would have reported a total profit $48,000 less under variable costing....

Reconcife the two income amounts. 3 E7-3A. Variable and Absorption Costing During its first year, Walnut, Inc., showed a $14 per-unit profit under absorption costing but would have reported a total...

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $81 per-unit profit under absorption costing but would have reported a total profit $72,000 less under variable costing....

Finish attempt Queston 2 Marked out of 5.00 Not complete PRag question Variable and Absorption Costing During its first year, Walnut, Inc., showed an $14 per-unit profit under absorption costing but...

Variable and Absorption Costing During its first year, Walnut, Inc., showed an $ 2 7 per - unit profit under absorption costing but would have reported a total profit $ 2 4 , 0 0 0 less under...

Use Green's Theorem to evaulate the line integral C F dr, where F(x, y) = 1 + tan2 x, x2 + ey , and C is the counterclockwise boundary of the region D enclosed by y = x, x = 1, and y = 0.

Problem 1 A thin lens with f= +15cm is used to project the image of an object. Screen which is placed 80 cm from on a the object. (a) Determine the two possible object distances. (b) For each value,...

What is the main requirement to open a Registered Disability Savings Plan? Any tax resident Tax resident that is approved to receive a Disability Tax Credit ( DTC ) Any adult Any Canadian Citizen

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

4. At one point in this chapter, we asked you to think of a time when an instructor presented a viewpoint that went against one of your deeply held beliefs. Now its time for you to be the speaker. c...

1. LaunchPad for Real Communication offers key term videos and encourages selfassessment through adaptive quizzing. Go to bedfordstmartins.com/realcomm to get access to: LearningCurve Adaptive...

3. On your next grocery store trip or while waiting in a doctors office, look through some magazine advertisements (bridal magazines are particularly interesting to search). As you page through the...