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he following cost information pertained to the violin division of stringing music company and was based on monthly demand and sales of 100 units: per-unit costs variable production costs: direct materials $ 170 direct labor 200 variable factory overhead 110 fixed production costs: depreciation (equipment) 70 factory rent 98 other 22 total production cost $ 670 variable selling $ 46 per unit Fixed selling & administrative costs $ 58 per unit Assume that the Violin Division was evaluating whether it would accept a special sales order for 65 violins at $500 per unit. For this purpose, total relevant cost per unit (given the costs stated above) is:

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Based on monthly demand and sales of 100 pieces, the cost data below for the violin division of the stringing music company was as follows: cost per unit variable costs of production direct resources Direct labor costs of $170, $200 in variable manufacturing overhead, and 110 in fixed production costs.

$430. Selling price per unit minus variable cost per unit is $1,360. Contribution margin per unit on regular (i.e., recurring) sales = (given) Variable selling and administrative cost per unit = $1,360 ($300 + $330 + $240) $60 = $1,360 $870 $60 = $430. Variable production cost per unit .

Costs that are fixed are those that don't change based on volume. The majority of fixed costs are expenses that depend more on time than they do on how much your company produces or sells. Rent and leasing charges, salary, energy prices, insurance, and loan repayments are a few examples of fixed costs.

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