Be22-4 gundy company expects to produce 1,200,000 units of product xx in 2017. monthly production is expected to range from 80,000 to 120,000 units. budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1. prepare a flexible manufacturing budget for the relevant range value using 20,000 unit increments.

Joint cost cheyenne, inc. produces three products from a common input. the joint costs for a typical quarter follow: direct materials $45,000 direct labor 55,000 overhead 60,000 the revenues from each product are as follows: product a $75,000 product b 80,000 product c 30,000 management is considering processing product a beyond the split-off point, which would increase the sales value of product a to $116,000. however, to process product a further means that the company must rent some special equipment costing $17,500 per quarter. additional materials and labor also needed would cost $12,650 per quarter. a. what is the gross profit currently being earned by the three products for one quarter? $answer b. what is the effect on quarterly profits if the company decides to process product a further? $answer