Required:(a) Economic order quantity(b) Optimum number of orders per year() Total cost of economic order quantity(d) Time gap between two consecutive orders.Ans: (a) 500 units (b) 10 times (c) Rs. 50,000 (d) 1.2 month or 3The annual need of a manufacturing company is 12,000 units and other information arbelow:Annual return on investment..15%Rent, tax and insurance per unit.Rs. 2.25 per yearCost of placing an order.Rs. 100Required:(a) Economic order quantity(b) Number of order(c) Length of inventory cycleHints: Purchase price per unit is assumed to be Rupee 1 if it is not

The profitability of the company can be arrived from the income statement prepared by the management…

Aris! are The annual need of a manufacturing company is 12,000 units and other information below: 15% Annual return on investment... Rs. 2.25 per year Rent, tax and insurance per unit.. Rs. 100 Cost of placing an order. Required: (a) Economic order quantity (b) Number of order (c) Length of inventory cycle

Aris! are The annual need of a manufacturing company is 12,000 units and other information below: 15% Annual return on investment... Rs. 2.25 per year Rent, tax and insurance per unit.. Rs. 100 Cost of placing an order. Required: (a) Economic order quantity (b) Number of order (c) Length of inventory cycle

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11E

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Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
Refer to Cornerstone Exercises 2.2 and 2.3. Next year, Pietro expects to produce 50,000 units and sell 49,300 units at a price of 12.50 each. Beginning inventory of finished goods is 42,500, and ending inventory of finished goods is expected to be 34,000. Total selling expense is projected at 26,000, and total administrative expense is projected at 134,000. Required: 1. Prepare an income statement in good form. Be sure to include the percent of sales column. 2. What if the cost of goods sold percentage for the past few years was 65 percent? Explain how management might react.
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The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
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