Answered

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The following costs related to Wintertime Company for a relevant range of up to 20,000 units annually: Variable Costs: Direct materials $2.50 Direct labor 0.75 Manufacturing Overhead 1.25 Selling and administrative 1.50 Fixed Costs: Manufacturing overhead $10,000 Selling and Administrative 5,000 The selling price per unit of product is $15.00. At a sales volume of 15,000 units, what is the total profit for Wintertime Company

Sagot :

ayokenny2001

Answer:

$120,000

Explanation:

The total profit for Winter company is computed as seen below

($15 × 15,000 units) - [$10,000 + $5,000(($2.50 + $0.75 + $1.25 + $1.50)15,000)]

= $225,000 - [$5,000 + ($6 × 15,000)]

= $225,0000 - $105,000

= $120,000

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