The information that follows is for Nancy’s Name Tents for the year ended December 31, 2015 and

covers questions 26-31. All per unit costs below are based on the production and sale of 3,000 name tents.

The relevant range is from 0 - 3,500 units.

Sales $50 sales price per name tent

Costs:

Variable Costs Per Tent (3,000 name tents produced and sold)

Direct materials 8

Direct labor 7

Manufacturing overhead 8

Period Costs 5

Fixed Costs

Manufacturing overhead 10

Period Costs 5

1) If 10,000 tents are produced and sold, what is the product cost per tent?

2) If 15,000 tents are produced and sold, what is the product cost per tent?

3) If 2,000 tents are produced and sold, what is the product cost per tent?

4) What is the fixed cost per tent at 1,000 tents (including period costs) produced and sold?

5) What are total period costs at 1,000 name tents (produced and sold)?

Suppose there are three types of consumers who attend concerts at your university’s performing arts center: students, staff, and faculty. each of these groups has a different willingness to pay for tickets; within each group, willingness to pay is identical. there is a fixed cost of $1,000 to put on a concert, but there are essentially no variable costs. for each concert: i. there are 140 students willing to pay $20. (ii) there are 200 staff members willing to pay $35. (iii) there are 100 faculty members willing to pay $50. a) if the performing arts center can charge only one price, what price should it charge? what are profits at this price? b) if the performing arts center can price discriminate and charge two prices, one for students and another for faculty/staff, what are its profits? c) if the performing arts center can perfectly price discriminate and charge students, staff, and faculty three separate prices, what are its profits?