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Managerial Accounting Cost Analysis

The document presents a managerial accounting assignment analyzing costs and income for different production levels. It details total costs, cost per unit, and an income statement in contribution format for 90,000 units sold at a selling price of $7.50. The net operating income is calculated to be $90,000 after accounting for variable and fixed expenses.

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Malik Ukasha
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19 views2 pages

Managerial Accounting Cost Analysis

The document presents a managerial accounting assignment analyzing costs and income for different production levels. It details total costs, cost per unit, and an income statement in contribution format for 90,000 units sold at a selling price of $7.50. The net operating income is calculated to be $90,000 after accounting for variable and fixed expenses.

Uploaded by

Malik Ukasha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Name : Areeba Qasim

Roll no. BSIF-02-22


Assignment no. 01
Managerial Accounting
Chapter no. 02
Question no. 08
Part : 1
Units Produced and Sold
60,000 80,000
Total costs:
Variable costs $ 150,000 $ 200,000
Fixed costs 360,000 360,000
Total costs $ 510,000 $ 560,000

Cost per unit:


Variable cost $ 2.50 $ 2.50
Fixed cost 6.00 4.50
Total cost per unit $ 8.50 $ 7.00

Part : 2
Given :

Units Produced and Sold 90,000


Selling Price per unit $ 7.50

Company's Income Statement in contribution format


Total
Sales (90,000 units * 7.50 per unit) $ 675,000
Variable Expenses (90,000 * 2.50) 225000
Contribution Margin $ 450,000
Fixed Expenses 360,000
Net Operating Income $ 90,000
d Sold
100,000

$ 250,000
360,000
$ 610,000

$ 2.50
3.60
$ 6.10

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