CHECK FOR ERRORS Assume a firm has fixed costs of $80 and variable costs as indicated in the table below. Complete the costtable.Total ProductTVCTCAFCAVCATCMCso$801$110$190$80Š110$190$110$150$230$40$75$115$403$180$260$26.66$60$86.66$30$220$300$20$55S75$405$270$350$16$54$70$506$340$420$13.33$56.66$70$70$440$520$11.42$62.85$74.28$100$580$660$10$72.5$82.5$1402.4.7.

Variable cost is the cost which changes with change in number of units and where as fixed cost is…

Assume a firm has fixed costs of $80 and variable costs as indicated in the table below. Complete the cost table. Total Product TVC TC AFC AVC ATC MC SO $80 ... ... 1 $110 $190 $80 $110 $190 $110 $150 $230 $40 $75 $115 $40 3 $180 $260 $26.66 $60 $86.66 $30 $220 $300 $20 $55 $75 $40 5 $270 $350 $16 $54 $70 $50 6 $340 $420 $13.33 $56.66 $70 $70 7 $440 $520 $11.42 $62.85 $74.28 $100 8 $580 $660 $10 $72.5 $82.5 $140 4.

Assume a firm has fixed costs of $80 and variable costs as indicated in the table below. Complete the cost table. Total Product TVC TC AFC AVC ATC MC SO $80 ... ... 1 $110 $190 $80 $110 $190 $110 $150 $230 $40 $75 $115 $40 3 $180 $260 $26.66 $60 $86.66 $30 $220 $300 $20 $55 $75 $40 5 $270 $350 $16 $54 $70 $50 6 $340 $420 $13.33 $56.66 $70 $70 7 $440 $520 $11.42 $62.85 $74.28 $100 8 $580 $660 $10 $72.5 $82.5 $140 4.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter12: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 1SEQ: Mario Company is considering discontinuing a product. The costs of the product consist of $20,000...

See similar textbooks

Similar questions

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.
Mario Company is considering discontinuing a product. The costs of the product consist of $20,000 fixed costs and $15,000 variable costs. The variable operating expenses related to the product total $4,000. What is the differential cost? A. $19,000 B. $15,000 C. $35,000 D. $39,000
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
A company shows you the following data: Sales Costs: Variable costs Fixed costs Total costs Income (loss) Product Data O $20,000 decrease O $30,000 increase O $30,000 decrease O $20,000 increase F Product G Total $300,000 $210,000 $340,000 $850,000 $180,000 $180,000 $220,000 $580,000 50,000 50,000 40,000 140,000 $230,000 $230,000 $260,000 $720,000 $ 70,000 $(20,000) $ 80,000 $130,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. How much would net income for the current year change if they discontinue Product G?
Please answer quicklyX product; total sales quantity is 25, unit sales price is 1600 TL, unit variable expense is 1000 TL. (Total fixed expenses 120.000TL)What is the 'break-even point' of X according to uniform production? 2310143019
Use the data to prepare the cost statement and income statement by use the variable cost . The production capacity ( 8 000 )unit , the seal price ( 2000 ) to unit . Direct materials ( 176000) Direct wages ( 128000 ). Direct expenses ( 132000 ) Indirect expenses ( 132000 ). ( 100 000 v. , 32 000 f. ). Marketing cost v. ( 100 000 )D. Administration cost 60000 D. Indirect marketing f. ( 100 000). The balance of f. g. f. ( 2500 ) unit , and the balance of f. g. l. ( 1000 ) unit . The number of sales unit ( ? ) unit
the Sales Cost ( 390000)$ , Sales ( 990000)$ , Ind. Marketing ( f. ) ( 120000)$ Ind. Exp. ( f.) ( 150000)$. Ad. Cost ( 220000)$. Net profit ( using variable Cost ) ?
The following pertained to Lomi Inc.: Product Sales Price Unit Variable Cost Projected sales A P50 P34 5,000 units B 20 15 25,000 units C 25 16 20,000 units Fixed costs amounted to P154,000. Instructions: 2. Describe its net income if the sales mix will be based on peso sales. Why is the result not applicable in aiding management in decision-making?
Understanding CVP relationships Calculate the missing amounts for each of thefollowing firms:Units Selling Variable Costs Contribution Fixed OperatingSold Price per Unit Margin Costs Income (Loss)Firm A 11,200 $24.00 ? $100,800 $41,300 ?Firm B 8,400 ? $18.20 ? 64,500 $32,940Firm C ? 7.30 4.20 10,850 ? (6,750)Firm D 4,720 ? 51.25 41,064 48,210 ?
Consider the following cost and pricing data of ABC Corp. on its Product X:Price: P120.00.per unitProfit Contribution: P90.00Proposed additional Cost: P3 per unit (for quality improvement)Current Profits: P2.4 millionSales: 100,000 units. A. Assuming that average variable costs are constant at all output levels, findABC Corp.’s total cost function before the proposed change.B. Calculate the total cost function if the quality improvement is implemented. UNANSWERED SUB-PARTSC. Calculate ABC Corp.’s break-even output before and after the change, assuming it cannot increase its price.D. Calculate the increase in sales that would be necessary with the quality improvement to increase profits to P2.7 million
Sheridan Company has fixed costs of $2300000 and variable costs are 20% of sales. What are the required sales if Sheridan desires net income of $400000? $11500000 $13500000 $3375000 $2875000
Determine fixed costs using the high-low method from the following data: Total Costs Level of Activity P65,000 11,250 P52,000 8,000 P86,000 16,500 a. P45,000 b. P20,000 c. P16,500 d. P9,500