ABC Corp. manufactures a product that yields the by-product, "Y". The only cost associated with Ya re selling costs of P.10 for each unit sold. ABC accounts for sales of Y by deducting Ys separable costs from Y's sales, and then deducting this net amountfrom the major product's cost of goods sold. Ys sales were 100,000 units at P1 each. If ABC changes its method of accoun ting for Y's sales by showing the net amountas additional sales revenue, then ABC's gross margin would: Increase by P90,000 Increase by 100,000 Increase by 110,000 Be una ffected
Q: Jacoby Company received an offer from an exporter for 21,200 units of product at $16 per unit. The…
A: Differential revenue is additional increase or decrease in revenue between two or more alternative…
Q: ABC Corp. manufactures a product that yields the by-product, “Y”. The only cost associated with Y…
A: Given information is: ABC Corp. manufactures a product that yields the by-product, “Y”. The only…
Q: Jacoby Company received an offer from an exporter for 23,600 units of product at $18 per unit. The…
A: Definition: Differential Analysis: Differential analysis refers to the analysis of differential…
Q: ures a product that yields the by-product "Yum." The only costs Abel Corp. man Sociated with Yum are…
A: Correct option is A. Increases by P90,000 Sales(100,000 × 1) = 100,000 Less: selling cost =…
Q: Taylor, Inc. produces only two products, Acdom and Belnom. These account for 60% and 40% of the…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…
A: Relevant cost refers to those cost which is relevant for choosing the best alternative whereas…
Q: Turtle Inc.’s income statement for the year 2019 on production and sales of 200,000 units is as…
A: Solution:- Calculation of break-even point for Turtle for the year 2019 in units as follows under:-…
Q: Stryker Industries received an offer from an exporter for 28,000 units of product at $17 per unit.…
A: Income from acceptance of the offer per unit = $17 - $11 = $6 per unit.
Q: Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of…
A: The variable cost is the cost that changes as the level of production increases. The variable cost…
Q: Carryon Company sells a product and a 12-month service package for that for a combined price of…
A: Combined price = $730 Standalone service package price = $800 Total Standalone price = $300 + $800 =…
Q: Maize Company incurs a cost of $35 per unit, of which $20 is variable, to make a product that…
A: Relevant cost per unit = Variable cost per unit + Additional costs per unit to imprint a logo = $20…
Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…
A: The answer is option (e.) [i.e OMR 3,000 Increase] Refer step 2 for explanation
Q: Kando Company incurs a $9 per unit cost for Product A, which it currently manufactures and sells for…
A: Definition: Manufacturing businesses: This is a business that buys raw materials, processes those to…
Q: Frazer Corp sells several products. Information of average revenue and costs is as follows:…
A: Operating income reduced would be the difference between the current value of operating income and…
Q: The Carlo Company has received a special order for 600 units of product B for P12 a unit. It usually…
A: Profit is defined as the monetary value which is earned by the individual or an organization, when…
Q: Lyca Company is currently operating at a loss of P20,000. The sales manager has received a special…
A: In the given question, the company is current incurring a loss of P 20,000. The company wants its…
Q: Mitchell Company manufactures a product with a unit variable cost of $50 and a unit sales price of…
A: As accepting the special order will not affect the fixed cost and the present sales (given), so the…
Q: Frazer Corp sells several products. Information of average revenue and costs is as follows: Selling…
A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…
Q: coby Company received an offer from an exporter for 29,100 units of product at $18 per unit. The…
A: Differential Revenue - It is the difference in revenues between two alternatives available with the…
Q: Sheridan Company manufactures a product with a unit variable cost of $41 and a unit sales price of…
A: Income under the accounting terms refers to the business profit that is retained after paying all…
Q: Stryker Industries received an offer from an exporter for 27,000 units of product at $19 per unit.…
A: A special offer does not affect the normal production, So the fixed costs will not be deducted while…
Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…
A: Net income is the income which is computed by diminution of operating cost from the gross profits.
Q: Stryker Industries received an offer from an exporter for 23,000 units of product at $16 per unit.…
A: Income = Sales - Relevant cost Fixed manufacturing cost is the sunk cost hence not considered
Q: va's Creations sells two products. A and B. The weighted average per unit is $36 and Ava's fixed…
A: Introduction: The breakeven point is calculated in accounting by dividing the fixed costs of…
Q: LKBP Co. sells two products, Natasha and Bench. The company sells these products at the rate of 2…
A: Weighted average contribution per units = (contribution margin per unit of natasha x sales mix) +…
Q: Sunland Company sells product 2005WSC for $125 per unit. The cost of one unit of 2005WSC is $122,…
A: The lower-of-cost-or-market rule defines that inventory should be recorded in books at lower cost…
Q: Sage Company is operating at 90% of capacity and is currently purchasir a part used in its…
A: Differential costs is the difference between costs of two alternatives. Costs and revenues should be…
Q: normally sells for $34. If accepted, Goodman will have to pay an additional shipping charge of…
A: Variable Manufacturing cost for each unit is a relevant cost as it is the cost to be incurred on…
Q: Stryker Industries received an offer from an exporter for 27,000 units of product at $19 per unit.…
A: The acceptance of the offer at a certain price will always depend on the cost of producing one unit.…
Q: Product X has revenue of $94,800, variable cost of goods sold of $61,200, variable selling expenses…
A: Formula: Profit or ( loss ) = Revenues - costs Deduction of costs from revenues derives the Profit (…
Q: For the next 2 items. Markgil Corp. manufactures a product that yields the by-product "Yum". The…
A: SOLUTION GROSS MARGIN = SALES - SELLING COST.
Q: Martin Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens…
A: a-1. Allocation of joint cost to the joint products:Results of formulas used in excel sheet is as…
Q: It costs Ghala Company OMR 13 of variable and OMR 6 of fixed costs to produce one unit which…
A: A firm needs to take special order decision when a product can be sold in a large quantity to a…
Q: NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units…
A: Break even is the point at which the entity is in a situation of no profit no loss.
Q: It costs Sohar Company OMR 12 of variable and OMR 5 of fixed costs to produce one unit of production…
A: The question is multiple choice question. Required Choose the Correct Option
Q: Jacoby company received an offer from an exporter for 30,000 units of product at $15 per unit. The…
A: The acceptance of the offer will not affect normal production or domestic sales. Fixed cost not…
Q: Stryker Industries received an offer from an exporter for 15,000 units of product at $17.50 per…
A: Differential Revenue - It is the difference of the sales which will generated by the two different…
Q: Sammy Co. has 24,000 defective units of a product that cost P8 per unit to manufacture, and can be…
A:
Q: Rylan corporation received an offer from an exporter for 25,000 units of product at $16 per unit.…
A: A ) Calculation of profit per unit: Selling price = $ 16 Variable cost = $ 11 Profit = selling price…
Q: Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 55 percent…
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: MORPHLING CORP. is engaged in producing and selling 2 types of furniture, DELUXE and SUPREME. The…
A: Morphling Corp. is engaged in producing two types of furniture - Deluxe and Supreme. The ratio of…
Q: A product called Wallaby has revenue of $1,250,000, variable costs of goods sold of $850,000,…
A: If loss making product Wallaby is discontinued then the entire fixed cost will be allocated to other…
Q: The following information regarding fixed production costs from a manufacturing firm is available…
A: Solution The incorrect statement is "Using variable costing, this firm will deduct no more than…
Q: Pau, Inc., which has fixed costs of $51401, sells two products whose sales price, variable cost per…
A: Break even is the point at which an entity is neither in losses nor earning any thing. It is a point…
Q: Camp Corporation produces a single product that it currently sells for P10. Fixed expenses are…
A: The question is based on the concept of Cost Accounting.
Q: Bonita Company manufactures a product with a unit variable cost of $43 and a unit sales price of…
A: If the special order is covered under the present capacity of the business then it will not attract…
Q: Bramble Company manufactures a product with a unit variable cost of $41 and a unit sales price of…
A: Note: In the special order question, firstly the relevant cost for the special order is calculated.…
Q: Sheridan Company sells product 2005WSC for $65 per unit. The cost of one unit of 2005WSC is $62, and…
A: Net Realizable Value = Normal selling price - disposal cost = $65 - $6 = $59 per unit
Q: sold at P16 per unit, while the company was able to sell 600 units of the hapter 14 614 allocated to…
A: The question is related to main product and by-product. The details are given. By product is that…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Garrett Company provided the following information: Common fixed cost totaled 46,000. Garrett allocates common fixed cost to Product 1 and Product 2 on the basis of sales. If Product 2 is dropped, which of the following is true? a. Sales will increase by 300,000. b. Overall operating income will increase by 2,600. c. Overall operating income will decrease by 25,000. d. Overall operating income will not change. e. Common fixed cost will decrease by 27,600.Anson Corp. manufactures a product that yields the by-product, "Yum". The only costs associated with Yum are selling costs of PO.10 for each unit sold. Anson accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1 each. If Anson changes its method of accounting for Yum's sales by showing the net revenue as other income, then net income wouldFor the next 2 items. Markgil Corp. manufactures a product that yields the by-product "Yum". The only costs associated with Yum are selling costs of P.10 for each unit sold. Abel accounts for sales of Yum by deducting Yum's separable costs from Yum's sales, and then deducting this net amount from the major product's cost of goods sold. Yum's sales were 100,000 units at P1.00 each. If Markgil changes its method of accounting for Yum's sales by showing the net amount as additional sales revenue, then Markgil's gross margin would * a. Increase by P90,000 b. Decrease by P90,000 c. Increase by P100,000 d. Increase by P100,000 e. Be unaffected If Markgil changes its method of accounting for Yum's sales by showing the net amount as other income, then Markgil's gross margin would * a. Increase by P90,000 b. Decrease by P90,000 c. Increase by P100,000 d. Increase by P110,000 e. Be unaffected
- ABC Corporation manufactures a product that gives rise to a by-product called Z. The only costs associated with Z are selling costs of P1 for each unit sold. ABC accounts for Z sales first b deducting its separable costs from such sales and then by deducting this net amount from cost of sales of the major product. This year, 1,000 units of Z were sold at P4 each. If ABC changes its method of accounting for Z sales by showing the net amount as additional sales revenue, ABC's gross margin would*a. decrease by P3,000b. increase by P4,000c. increase by P3,000d. be unaffectedABC Corporation manufactures a product that gives rise to a by-product called Z. The only costs associated with Z are selling costs of P1 for each unit sold. ABC accounts for Z sales first b deducting its separable costs from such sales and then by deducting this net amount from cost of sales of the major product. This year, 1,000 units of Z were sold at P4 each. If ABC changes its method of accounting for Z sales by showing the net amount as other income, ABC's gross margin willa. increase by P3,000b. increase by P4,000c. be unaffectedd. decrease by P3,000Lucille Inc manufactures a product that gives rise to a by product called "Robon". The only cost associated with Robon are additional processing cost of P1.00 for each unit. Lucille accounts for Robon sales first by deducting its separable costs from such sales and then by deducting this net amount from the cost of sales of the major product. For the past year, 2,000 units of Robon were produced which were sold for P3.00 each. Sales revenue and cost of goods sold from the main product were P500,000 and P400,00 respectively. Required: If Lucille changes its method of accounting for Roblon sales by showing the net amount as "other income", the effect on gross margin would be (increase of decrease of what amount?) The gross martin after considering the by product sales and costs would be
- Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. Find the firm’s operating breakeven point in units. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($)”, and then graph the firm’s sale revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating breakeven point and the areas of loss of profit (EBIT).Ladder Co. produces and sells only two products, Yang and Yin. 6 units of Yang are sold for every 4 units of Yin. Variable costs as a percentage of sales in pesos are 60% for Yang and 85% for Yin. Total fixed cost is P150,000. Assuming that the total fixed cost of Vader Co. is expected to increase by 30% next period, what amount of Yin sales in pesos would be necessary to breakeven?The joint costs is P85,000. NUBD currently sells both products at the split-off point. If NUBD makes decision which maximizes profit, its profit will increase by
- LKBP Co. sells two products, Natasha and Bench. The company sells these products at the rate of 2 units of Natasha and 3 units of Bench. The contribution margin per unit of Natasha is P4 and of Bench is P2. The total fixed costs is P420,000. The selling price of Natasha is P10 and Bench is P8.Compute the following: a. Break-even point in pesos for Natasha. b. Break-even point is pesos for Bench.NUBD Co. sells two products, Avon and Bona. The company sells these products at the rate of 2 units of Avon and 3 units of Bona. The contribution margin per unit of Avon is P4 and of Bona is P2. The total fixed costs is P420,000. The selling price of Avon is P10 and Bona is P8.Compute the following: a. Break-even point in pesos for Avon b. Break-even point is pesos for Bona.Keller Company sells product ZR101 for $25 per unit. The cost of one unit of ZR101 is $18. The estimated cost to complete a unit is $4, and the estimated cost to sell is $6. At what amount per unit should product ZR101 be reported, applying lower-of-cost-or-net realizable value?