EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the results of the company's operations for the current month. At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000. a-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.) a-2. Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.)
EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the results of the company's operations for the current month. At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000. a-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.) a-2. Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.)
Cornerstones of Cost Management (Cornerstones Series)
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Chapter13: The Balanced Scorecard: Strategic-based Control
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EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management recently finished analyzing the results of the company's operations for the current month. At a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000.
a-1. Compute the total cost per unit at a production level of 40,000 pens per month. (Round your answer to 2 decimal places.)
a-2. Compute the total cost per unit at a production level of 50,000 pens per month. (Round your answer to 2 decimal places.)
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