C & G, Inc. has sales and cost data for the current year below.
a) If C & G is able to increase production and sales by 2,000 units without adding extra fixed costs, what will be the unit variable cost and unit fixed cost at 5,000 units?
b) If C & G is able to increase production and sales by 2,000 units but only by adding extra fixed costs of $20,000, what will be the unit variable cost and unit fixed cost at 5,000 units?

Question

C & G, Inc. has sales and cost data for the current year below.  
a) If C & G is able to increase production and sales by 2,000 units without adding extra fixed costs, what will be the unit variable cost and unit fixed cost at 5,000 units? 
b) If C & G is able to increase production and sales by 2,000 units but only by adding extra fixed costs of $20,000, what will be the unit variable cost and unit fixed cost at 5,000 units?

Quizplus · Accepted Answer

The Answer of C & G, Inc. has sales and cost data for the current year below.  
a) If C & G is able to increase production and sales by 2,000 units without adding extra fixed costs, what will be the unit variable cost and unit fixed cost at 5,000 units? 
b) If C & G is able to increase production and sales by 2,000 units but only by adding extra fixed costs of $20,000, what will be the unit variable cost and unit fixed cost at 5,000 units?