Ask Question
30 April, 02:09

Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20. There are no fixed costs. The selling price per unit is $50. What is the incremental cost of the proposed change?

A) $10,000B) $20,000C) $30,000

D) $60,000

+1
Answers (1)
  1. 30 April, 02:37
    0
    Answer: C - $30,000

    Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.

    The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.

    The selling price per unit is $50

    To increase production by 1000 units

    Total cost is $10 + $20 = $30

    Total incremental cost = 1,000 * $30 = $30,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per unit is $10. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers