A steel drum manufacturer incurs a yearly fixed operating cost of 200000. Each drum manufactured costs 160 to produce and sells for 200. what is the manufacturer's break even sales volume in drums per year?

Q: Levi Strauss has some of its jeans stone-washed under a contract with independent U.S. Garment Corp.…

A: Equivalent-Uniform-Annual Cost(EUAC) is the cost of operating a machine in current dollars…

Q: The Mandaue Furniture produces tables. The fixed monthly cost of production is P8,000, and the…

A: Cost-volume-profit analysis is a technique that is used to determine the impact of costs and sales…

Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…

A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: Determine the annual breakeven quantity for the (a) Current system and (b) the new system. (b) Plot…

A: •Break even point = fixed cost / contribution per unit  •Contribution per unit = selling price per…

Q: A manufacturer of plastic traffic cones sells the cones at a wholesale cost of £8 pounds per cone.…

A: Annual profit = Contribution margin - Annual overhead costs where, Contribution margin = (Sales per…

Q: A manufacturing shop has annual fixed expenses of P500,000,000 and variable costs of P1,400 per…

A: Break even in cost accounting refers to a point where total costs are equal to total revenue and…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: Cost of Producing one unit = labor cost + material cost + variable cost Cost of Producing one P22 +…

Q: A certain company has the capacity to produce 500,000 units of a product yearly. This year, the…

A: Answer - Formula for Break even Point -  Break even Point = Fixed Cost/ (Sales price per unit -…

Q: A machine that is not equipped with a brake “costs” 30 seconds after the power is turned  off upon…

A: Depreciation is a method of accounting that allocates the cost of a tangible or physical asset over…

Q: The annual variable production costs for a plant operates at 70% capacity are $600,000 while the sum…

A: Workings: 1) Computation of income statement at 70% capacity Particulars Amount $ Per unit $…

Q: A company is creating and selling a new product. They can sell each unit for $26.29. the variable…

A: Selling price = $ 26.29 Variable cost = $ 15.04 Fixed cost = $ 2968

Q: Three machines are employed in an isolated area. They each produce 2000 units of output per month,…

A: given information each produces = 2000 units 1st machine requires raw materials = $20,000 2st…

Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…

A: Answer A) Calculation of Breakeven point in units Breakeven point in units = Total fixed Cost/…

Q: A company produces 500,000 units of a product per year and are being sold for P4,000,000. It incurs…

A: Break Even point is that point on which company will recover all the cost ( Variable Cost + Fixed…

Q: KARATE Corp. is capable of turning out 15 completed units every 30 seconds. The plant normally…

A: The complete cost of producing, storing, and selling one unit of a given product or service is known…

Q: A company annually consumes 10,000 units of Part C. The carrying cost of this part is P2 per year…

A: Economic order quantity in costing States the order quantity at which the ordering and carrying cost…

Q: A furniture manufacturer has an annual overhead cost of P100,000 plus 20% of the sales in pesos.…

A: Let selling price be X. Sales will be 8000X. Variable cost per unit = Labor cost+Materials cost…

Q: Santa Fe Company, a farm-equipment manufacturer, currently produces 20,000 units of gas filters for…

A:

Q: A manufacturing company orders 24,000 units of concrete blocks semi-annually at a price of Php20.00…

A: Optimal order quantity is that order quantity or that number of units that must be ordered in order…

Q: Bosco Company sells boxes of cookies and has total fixed costs of $200,000 per month.  Variable…

A: Given, Seeking price = 10 per unit Variable cost = 8 per unit Contribution = 2 per unit   Fixed cost…

Q: Wary Corp. Is capable of turning out fifteen (15) completed units every 30 seconds. The plant…

A: a. Compute the Idle capacity cost under normal capacity if the plant operated at 3,400 hours.…

Q: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90.…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: A local company assembling stereo radio cassette produces 312 units per month at a cost of Php 800…

A: Let N = number of radio cassette to produce for break even point   Total Income =number of radio…

Q: Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the…

A: The question is based on the concept of Cost Accounting.

Q: Auto Tires, Inc. sells tires to service stations for an average of $45 each. The variable costs of…

A: Breakeven sales point means point of level at which business is only recovering its fixed costs and…

Q: Melrose can sell 68,000 units of Product C to regular customers next year. If Moore Company offers…

A: Current Special Order Unit Selling Price P100 P95 Less: Units Variable Cost:     Direct…

Q: The cost of producing a small transistor radio set consists of P22.00 for labor and P36.00 for…

A: A Break-even point is a point where a company's revenues and expenses were equal within a specific…

Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…

A: Given,   Plastic pitchers Glass pitchers Selling Price 40 47 Variable cost per unit 30 26…

Q: how many pairs must be produced each month for the foundry to break even?

A: Break even:-  Break even is a point at which the company is neither in profits nor losses. Anything…

Q: XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and…

A: Annual demand: 325 kgs. x 12 months = 3,900 kgs.  Cost per unit: OMR 2.00 Ordering cost per order:…

Q: A steel drum manufacturer incurs a yearly fixed operating cost of 200000. Each drum manufactured…

A: Break-even point Sales volume = Total Fixed Cost/ Contribution margin per unit Break-even point…

Q: A company that manufactures ceramic cups has a fixed costs amounting to P270,000 per month Variable…

A: The following information is provided as follows:- Fixed cost per month = P270,000  Variable cost =…

Q: The Warren W. Fisher Computer Corporation purchases 8,000 transistors each year as components in…

A: a)

Q: A furniture manufacturer has an annual overhead cost of P120,000 plus 20% of the sales in pesos.…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

Q: Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each…

A: a) Break even components=Fixed costs/Contribution margin per unit Fixed costs=$35,120 Contribution…

Q: The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00…

A: The cost-volume-profit analysis or the CVP analysis is a method or technique used in cost accounting…

Q: What is the fixed cost per unit at the break-even point?

A: Information Provided: Production units = 8000 Selling price = 1.50P Fixed costs = 2800P Variable…

Q: A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of…

A: Break-even point- It is a point at which a company incurs no losses and earns no profits during a…

Q: Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the…

A: Pounds per sack = 100 lb   Week by week interest = 100,000 lb   d = Wkly intt for sacks =…

Q: The fixed costs within a machine shop are $3.4M annually.  The main product this shop produces is…

A: Formula: Net Profit = Revenues - expenses Deduction of expenses from revenues derives the Net…

Q: XYZ Inc. needs 325 kgs of a material per month. It costs OMR 100 to make and receive an order, and…

A: Economic Order Quantity Economic Order Quantity (EOQ) is the level of inventory that minimizes the…

Q: Wilson Publishing Company produces books for the retail market. Demand for a current book is…

A: Daily demand (d)  Annual demand /no.of working days 7400/250 29.6 copies Daily production (p) Annual…

Q: How much is the break-even point in units?

A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Fixed Costs = $164500 Contribution…

Q: 3/Summer Company sells a product with a contribution margin ratio of 60%. Fixed costs are $650 per…

A: Required dollars sales = Total contribution margin required / Contribution margin per unit

Q: A company has a production capacity of 580 units per month and its fixed cost is P185,000 a month.…

A: The Break-even point indicates that total units are to be sold by the business entity to recover its…

Q: The Metal Shop produces 1.8 million metal fasteners a year for industrial use. At this level of…

A: Calculate the variable cost as follows: Variable cost = Total cost - Fixed cost Variable cost =…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.