Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month. Sales per unit $320 Fixed costs (per month) Selling and administration 16,000 Production overhead 16,000 Variable costs (per test) Labor for oversight and feedback 140 Outsourced test analysis 22 Materials used in testing 7 Production overhead 15 Selling and administration 12
Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month. Sales per unit $320 Fixed costs (per month) Selling and administration 16,000 Production overhead 16,000 Variable costs (per test) Labor for oversight and feedback 140 Outsourced test analysis 22 Materials used in testing 7 Production overhead 15 Selling and administration 12
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
Problem 4.2IP
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Consider the data in the table which applies to the provision of psychological testing services. Calculate the variable production cost per unit (one unit = one test) if the number of tests is 400 per month.
Sales per unit | $320 |
Fixed costs (per month) | |
Selling and administration | 16,000 |
Production overhead | 16,000 |
Variable costs (per test) | |
Labor for oversight and feedback | 140 |
Outsourced test analysis | 22 |
Materials used in testing | 7 |
Production overhead | 15 |
Selling and administration | 12 |
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