Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month. Sales per unit $320 Fixed costs (per month) Selling and administration 16,000 Production overhead 16,000 Variable costs (per test) Labor for oversight and feedback 140 Outsourced test analysis 22 Materials used in testing 7 Production overhead 15 Selling and administration 12
Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month. Sales per unit $320 Fixed costs (per month) Selling and administration 16,000 Production overhead 16,000 Variable costs (per test) Labor for oversight and feedback 140 Outsourced test analysis 22 Materials used in testing 7 Production overhead 15 Selling and administration 12
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
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Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month.
Sales per unit | $320 |
Fixed costs (per month) | |
Selling and administration | 16,000 |
Production overhead | 16,000 |
Variable costs (per test) | |
Labor for oversight and feedback | 140 |
Outsourced test analysis | 22 |
Materials used in testing | 7 |
Production overhead | 15 |
Selling and administration | 12 |
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