Author Question: Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply ... (Read 51 times)

tatyanajohnson · **on:** Mar 6, 2021

Question 1

Rapid Cabinet Makers Inc. provided the following information for last month:

Sales

$25,000

Variable costs

10,000

Fixed costs

3,000

Operating income

$12,000

If sales reduce to half the amount in the next month, what is the projected operating income?
◦ $1,000
◦ $6,000
◦ $4,500
◦ $18,500

Question 2

Ridez Manufacturing currently produces 4,000 bicycles per month. The following per unit data apply for sales to regular customers:

Direct materials

$53

Direct manufacturing labor

10

Variable manufacturing overhead

12

Fixed manufacturing overhead

14

Total manufacturing costs

$89

The plant has capacity for 6,000 bicycles and is considering expanding production to 5,000 bicycles. What is the per unit cost of producing 5,000 bicycles?
◦ $91.80 per unit
◦ $111.25 per unit
◦ $69.80 per unit
◦ $86.20 per unit

brittanywood · **Reply #1 on:** Mar 6, 2021

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