Nielson corp sells its product for 8800 per unit variable

Reference no: EM13579716

1. Ramirez Corporation sells two types of computer chips. The sales mix is 30% (Q-Chip) and 70% (Q-Chip Plus). Q-Chip has variable costs per unit of $60 and a selling price of $100. Q-Chip Plus has variable costs per unit of $70 and a selling price of $130. The weighted-average unit contribution margin for Ramirez is

(a) $100.

(b) $46.

(d) $50.

2.Nielson Corp. sells its product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000 manufacturing overhead, and $32,000 selling and administrative. There was no beginning inventory at 1/1/12. Production was 20 units per year in 2012-2014. Sales was 20 units in 2012, 16 units in 2013, and 24 units in 2014. For the three years 2012-2014,

(a) variable costing income exceeds absorption costing income by $8,000.

(b) absorption costing income exceeds variable costing income by $8,000.

(d) absorption costing income may be greater than, equal to, or less than variable costing income, depending on the situation.

Reference no: EM13579716

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