Reference no: EM132537052

Barbara Name Tents has provided their per-unit sales and cost information for the year ended December 31, 2020. All per-unit costs below are based on the production and sale of 3,000 name tents. The relevant range is 0-3,500 tents. Round all per-unit answers to the nearest penny.

Sales $53

Costs

Variable Costs

Direct Materials 12

Direct Labor 5

Manufacturing Overhead 21

Period Costs 4

Fixed Costs

Manufacturing Overhead 8

Period Costs 1

Question 1) If 2,000 tents are produced and sold, what is the product cost per tent?

Question 2) What is the fixed cost per tent at 1,000 tents (including period costs) produced and sold?

Question 3) What are the total fixed costs in this example at 2,000 name tents (produced and sold)?

Question 4) What are the total variable costs in this example at 2,000 name tents (produced and sold)?

Question 5) What are the total period costs at 2,000 name tents (produced and sold)?

Question 6) Will Barbara's turn a profit if they sell 2,000 name tents?

Question 7) What is the cost equation for Barbara's?

Question 8) What is the contribution margin, per unit?

Question 9) How many units does Barbara need to sell in order to break even if she sells them at the price listed above?

Question 10) If Barbara's expects to sell only 2,000 tents, what price should she charge, per unit to break even?