Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories andits relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are asfollows:AmountPer UnitDirect materials$8.00$5.00$1.00$6.00$3.50$2.50$ 4.00$1.00Direct laborVariable manufacturing overheadFixed manufacturing overheadFixed selling expenseFixed administrative expenseSales commissionsVariable administrative expense 4. If 27,000 units are produced, what are the total amounts of direct and indirect manufacturing costs incurred to support this level ofproduction?5. What total incremental manufacturing cost will Hixson incur if it increases production from 25,000 to 25,001 units? (Round youranswer to 2 decimal places.)6. What is Hixson's contribution margin per unit? What is its contribution margin ratio? (Round "Contribution margin per unit" to 2decimal places and "Contribution margin ratio" to 1 decimal place.)7. What is Hixson's break-even point in unit sales? What is its break-even point in dollar sales? (Do not round your intermediatevalues.)8. How much will Hixson's net operating income increase if it can grow production and sales from 25,000 units to 26,500 units?9. What is Hixson's margin of safety at a sales volume of 25,000 units? (Do not round your intermediate values.)10. What is Hixson's degree of operating leverage at a sales volume of 25,000 units? (Round your answer to 1 decimal places.)

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Description: Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories andits relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit c

SOLUTION- 4-TOTAL MANUFACTURING COST AT 27000 UNITS LEVEL- DIRECT MATERIAL $8*27000 216000…

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Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials $8.00 $5.00 $1.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.00 $3.50 $2.50 $4.00 $1.00 Sales commissions Variable administrative expense

Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials $8.00 $5.00 $1.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.00 $3.50 $2.50 $4.00 $1.00 Sales commissions Variable administrative expense

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter6: Activity-based, Variable, And Absorption Costing

Section: Chapter Questions

Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...

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