A company is considering two alternative technologies for manufacturing a product. The cost data are shown below.Fixed CostVariable CostThe breakeven volume isMore than 400 unitsA$10,000$30/unitLess than or equal to 200 unitsB$25,000$5/unitMore than 300 but less than or equal to 400 unitsO None of the optionsMore than 200 but less than or equal to 300 units

Data is given for two products (A) and (B) For (A) : Fixed cost = $10,000 Variable cost = $30/unit…

Answered: A company is considering two…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Use the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?
Based on the following cost data, what conclusions can you make about Product A and Product B? Total Cost Production Product A Product B 10 units $100 100 units S1,000 1,000 units $10,000 Unit Cost Production Product B Product A 10 units s10,000 $1,000 100 units 1.000 units $100 Multiple Choice Product A is a fixed cost and Product B is a variable cost Product A is a variable cost and Product B is a fixed cost Product A and Product B are both variable costs. Product A and Product B are both mixed costs.
Use the following information to answer the question: Selling price per unit $200 Variable manufacturing costs per unit $ 50 Fixed manufacturing costs per unit $ 60 Variable selling costs per unit $ 40 Fixed selling costs per unit $ 20 Expected production and sales 800 units Contribution margin per unit is:
If you have the following cost equation Y = 3000 + 10 X units produced 1500 units . The total fixed cost is: Select one: a. The correct answer not available Ob. OMR 18000 x c. OMR 3000 d. OMR 15000
Evander Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs 770 $120,960 1,470 136,010 2,170 188,160 a. Determine the variable cost per unit and the total fixed cost.Variable cost fill in the blank 1 of 2$Total fixed cost fill in the blank 2 of 2$ b. Based on part (a), estimate the total cost for 1,060 units of production.Total cost for 1,060 units fill in the blank 1 of 1$
Find the missing information Output Fixed Variable Total Costs Costs Cost of (units) Costs per unit stion Company 4000 50000 70000 ? ? A Select one: O a. Total cost 120000 cost per unit 15.5 O b. otal cost 120000 cost per unit 30 O c. Total cost 74000 cost per unit 18.5 O d. Total cost 54000 cost per unit 13.5
If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $421,800, what is the manufacturing cost per unit if: a. 5,700 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 7,400 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 5,700 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 7,400 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
Complete the table below for contribution margin per unit, total contribution margin, and contribution margin ratio: (Click the icon to view the table.) Compute the missing information, starting with scenario A, then for scenarios B and C. (Enter the contribution margin ratio to nearest percent, X%.) A B C 1,290 units 14,390 units 3,600 units 1,400 4,400 $ 1,250 700 880 625 Number of units Sale price per unit Variable costs per unit Calculate: 700 Contribution margin per unit Total contribution margin 903,000 Contribution margin ratio 50% 3520 50,652,800 80% %
A company is considering two alternatives with the following costs: Alternative 1 Alternative 2Material costs$87,000 $87,000 Utilities costs$45,000 $44,100 Review costs$41,000 $44,100 Direct labor costs$51,000 $51,000 Identify the costs that are relevant and the costs that are not relevant, given the choice of alternatives. Calculate the differential cost between the alternatives.
Each of the question below is to be treated independently. Basic CVP Analysis – Using Goal Seek Determine the breakeven point for the Drill/Driver product line. Pittsburgh Tools is considering modifications to the 18v Light production line. Analysis suggests that the modifications could result in $0.65 per unit variable cost reduction and $1,300 per quarter fixed cost increase. Assuming these changes have no impact on volume, determine the price that would be necessary to achieve $0 product line margin? Multiproduct CVP Analysis – Using Solver Assuming the current sales mix reaches the targeted sales mix, determine the breakeven point in sales revenue necessary for the division to achieve $0 divisional operating income (breakeven). Assume the current sales mix reaches the targeted sales mix, determine the sales revenue necessary for the division to achieve $100,000 divisional operating income. See the Excel instructions on the next page Making Copies of a Worksheet Tab Your…
eBook Show Me How 2,340 $187,920 4,220 249,720 5,940 292,320 a. Determine the variable cost per unit and the total fixed cost. Variable cost: (Round to the nearest dollar.) Total fixed cost: High-Low Method Ziegler Inc. has decided to use the high-low method to estimate the total cost and the fixed and variable cost components of the total cost. The data for various levels of production are as follows: Units Produced Total Costs Check My Work 2 more Check My Work uses remaining. $ b. Based on part (a), estimate the total cost for 2,980 units of production. Total cost for 2,980 units: $ per unit All work saved. Ti Previous B Next >
a) Determine the variable cost per unit and the fixed cost using the high-low method.b) What is the equation of the total mixed cost function?c) Prepare the scatter diagram and insert the trendline or line of best-fit. Use a scaleof 2 cm to represent 1,000 units on the x-axis & 2 cm to represent $50,000 on the yaxis.

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