What is susan incremental profit

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1. Bellfont Company produces door stoppers. August production costs are below:

Door Stoppers produced 78,000

Direct Material (Variable) $20,000

Direct Labor (Variable) 40,000

Supplies (Variable) 20,000

Supervision (Fixed) 25,100

Depreciation (Fixed) 23,300

Other (Fixed) 3,500

In September, Bellfont expects to produce 100,000 door stoppers. Assuming no structural changes, what is Bellfont's production cost per door stopper for September?

2. Aaron's chairs is in the process of preparing a production cost budget for August. Actual costs in July for 120 chairs were:

Materials cost $4,500

Labor cost 2,660

Rent 1,500

Depreciation 2,500

Other fixed costs 3,200

Materials and labor are the only variable costs. If production and sales are budgeted to change to 130 chairs in August, how much is the expected total variable cost on the August budget?

3. Stellar Company has the following sales, variable costs and fixed cost. If sales increase by $10,000 then their profit increases/decreases by how much?

Sales $50,000

Variable Costs $ 7,600

Fixed Costs $29,000

4. Susan is trying to decide whether or not to attend college during the next 12-week session. She has the following options:

  1. Attend college full-time at cost of $1,200
  2. Attend college part-time at a cost of $700 and work part-time earning $1,900
  3. Work full-time earning $4,900

What is Susan's incremental profit if she chooses option 3 over option 2?

Reference no: EM131779598

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