Assume XYZ Company intends to produce 15000 units next month. Calculate total production costs for the month if fixed cost is 9000 OMR Total Variable cost 100000 OMR and the Units produced is 10000 Units a. 110000 OMR b. 120000 OMR c. 125000 OMR d. 159000 OMR

Assume XYZ Company intends to produce 15000 units next month. Calculate total production costs for the month if fixed cost is 9000 OMR Total Variable cost 100000 OMR and the Units produced is 10000 Units a. 110000 OMR b. 120000 OMR c. 125000 OMR d. 159000 OMR

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EA: Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000...

See similar textbooks

Related questions

Q: Locus Company has total fixed costs of $115,000. Its product sells for $43 per unit and variable…

Q: ales (54,600 units @ $34) $1,856,400 Total variable cost 1,064,700 Contribution margin $ 791,700…

A: At break-even point, net is $0. So the contribution margin is equal to the total fixed cost.

Q: A. Draft a schedule showing the profit and loss for each period up to ten (10) periods increasing by…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…

A: 1. Contribution margin=contributionsales=P200000P500000×100=40% Profit before…

Q: XYZ Company incurred total fixed cost OMR 5000, total Variable cost OMR 200000 for the units…

A: Total production cost = variable cost +fixed cost Fixed cost remains constant at level of production…

Q: A firm has total costs of $18000 when 2000 units are produced and $26000 when 5200 units are…

A: Let fixed cost be "F" Variable cost per unit be "V" Now, when number of units is 2000, Total cost =…

Q: Klamath Company produces a single product. The projected income statement for the coming year is as…

A: The operating income is the earnings of an entity from the core business activities or earnings from…

Q: ABC Ltd has the following details for the year ending December 31, 2009 Fixed Cost…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered. If you want the answer…

Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…

A: In this numerical has covered the concept of Cost Volume Profit Analysis.

Q: For the current year ending October 31, Papadakis Company expects fixed costs of $536,300, a unit…

A: The break-even point is a level where the company incur neither gain nor loss. It is calculated by…

Q: For the current year ending April 30, Philip Company expects fixed costs of $70,000, a unit variable…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Zhao Co. has fixed costs of $416,000. Its single product sells for $185 per unit, and variable costs…

A: Given: Selling price per unit = $185 Variable cost per unit = $121 Fixed cost = $416,000 Expected…

Q: At a price of P12 the estimated monthly sales of a product is 10,000 units. Variable costs are P7…

A: Solution: Contribution margin per unit = Selling price - Variable cost = 12-7 = P5 per unit Break…

Q: . OT Ltd plans to produce and sell 4,000 units of product C each month, at a selling price of £18…

A: First, we need to find the breakeven point, which is given by Break even point = fixed cost…

Q: For the current year ending October 31, Yentling Company expects fixed costs of $426,000, a unit…

A: Contribution margin per unit = selling price - variable costs = $60 - $40 = $20 per unit

Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Choose the correct letter of answer At a price of P12 the estimated monthly sales of a product is…

A: The contribution margin is calculated as difference between sales and variable costs.

Q: XYZ Company incurred total fixed cost OMR 5000, total Variable cost OMR 200000 for the units…

A: Variable costs are costs that changes with change in level of activity. Fixed costs are costs that…

Q: Following figures relate to Rajkot Mills Ltd. For the year 2019: Fixed factory overhead…

A: Break even point is the point where company is at zero profit. Break even point is where company is…

Q: Bonita, Inc. is a company that manufactures and sells a single product. Unit sales for each of the…

A: An income statement is a financial report that indicates the revenue and expenses of a business. It…

Q: The information is as below: Month Units 1 1000 2 2000 3 3000 Total costs K1,000,000 K1,200,000…

A: Variable cost per unit = Total cost in Month 2 - Total cost in Month1 / Units in month 2- Units in…

Q: A company makes a product with a selling price of $20 per unit and variable costs of $12 12 per…

A: Calculate contribution margin per unit:

Q: Fantastic Company has capacity for the production and sales of 30,000 units. Current production is…

A: Given, Total capacity = 30000 units Current production = 10000 units Fixed cost = $13 per unit

Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…

A: This sum relates to the cost volume profit analysis. Due to our policy , we can not answer more…

Q: the current year ended October 31, Papadakis Company expects fixed costs of $12,600,000, a unit…

A: Break even sales units are those units level at which contribution margin in total equals fixed…

Q: For the current year ending October 31, Papadakis Company expects fixed costs of $354,200, a unit…

A: Formula: Unit Contribution margin = Sales price - variable cost Deduction of variable cost from…

Q: After reviewing its cost structure (variable costs of P6.00 per unit and monthly fixed costs of…

A: Fixed cost is not considered at the time of decisions making for additional units. The additional…

Q: A manufacturer produces a certain commodity at a labor cost of P315 each, material cost of P100 each…

A: Answer) Calculation of number of units to be produced to breakeven Number of units to be produced =…

Q: Assume XYZ Company intends to produce 20000 units next month. Calculate total production costs for…

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: Funtastic Company has capacity for the production and sales of 30,000 units. Current production is…

A: Fixed cost: It refers to the cost that remains constant and does not change with a change in the…

Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…

A: Contribution margin per unit = Selling price - Variable costs per unit Breakeven in units = Fixed…

Q: A company produces a certain commodity. The labor and material cost for each item produce is P112.…

A: Given: Fixed cost = P316,000 Selling price = P425 Variable cost = P112 Other variable cost =P67

Q: 54) For the current year ending April 30, MJW Company expects fixed costs of $70,000, a unit…

A: Formulae: Break-even sales (units)=Fixed costsSelling price-Unit variable cost Sales (units) at…

Q: 1. Assuming that the cost structure and the selling price remain constant, what is the percentage of…

A: Requirement 1 is as follows: Result:

Q: Burgandy Manufacturing produces a single product that sells for $100. Variable costs per unit equal…

A: Break-even point refers to the refers to the point where a company make no profit and no loss. At…

Q: For the current year ending October 31, Papadakis Company expects fixed costs of $530,200, a unit…

A: In this numerical has covered the concept of Cost volume Profit Analysis . Break even point is point…

Q: At a price of P20, the estimated Magnolia Company’s monthly sales of product is 10,000 units.…

A: Actual sales = Price * Unit sales Actual sales = P 20 * 10,000 Actual sales = P 200,000

Q: The PILLOW Co. manufactures two products, AA and BB. The following are projections for the coming…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: For XYZ Company, how many units of their product would have to be sold to yield a target operating…

A: Formula: Required units = [ ( Fixed cost + Target profit ) / Contribution margin per unit ]…

Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…

A: The incremental cost refers to the total cost that a manufacturing unit incurs when an additional…

Q: A company manufactures and sells one product. It plans to sell 25,000 units for the period. The…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Craylon Manufacturing produces a single product that sells for $100. Variable costs per unit equal…

A: Calculation of contribution per unit : Particulars Amount Selling price per unit $100…

Q: Sarasota, Inc. is a company that manufactures and sells a single product. Unit sales for each of the…

A: An income statement is prepared by the company to depict the financial performance of the company…

Q: For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit…

A: Break even sales (in units) = Fixed Cost/Contribution margin per unit

Q: ) Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…

A: Break even point means where there is no profit no loss. Variable cost means the cost which vary…

Q: Wayne Inc. expects to maintain the same inventories at the end of the year as the beginning of the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Question

110000 OMR

120000 OMR

125000 OMR

159000 OMR

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
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.
Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?
Bobcat uses a traditional cost system and estimates next years overhead will be $800.000, as driven by the estimated 25,000 direct labor hours. It manufactures three products and estimates the following costs: If the labor rate is $30 per hour, what is the per-unit cost of each product?
Wellington, Inc., reports the following contribution margin income statement for the month of May. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $10 but will increase fixed costs by 20%. Prepare a projected contribution margin income statement for Wellington, Inc., assuming it purchases the new equipment. Assume sales level remains unchanged.
Remarkable Enterprises requires four units of part A for every unit of Al that it produces. Currently, part A is made by Remarkable, with these per-unit costs in a month when 4,000 units were produced: Variable manufacturing overhead is applied at $1.60 per unit. The other $0.50 of overhead consists of allocated fixed costs. Remarkable will need 8,000 units of part A for the next years production. Altoona Corporation has offered to supply 8,000 units of part A at a price of $8.00 per unit. If Remarkable accepts the offer, all of the variable costs and $2,000 of the fixed costs will be avoided. Should Remarkable accept the offer from Altoona Corporation?
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
Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Colonels uses a traditional cost system and estimates next years overhead will be $480,000, with the estimated cost driver of 240,000 direct labor hours. It manufactures three products and estimates these costs: If the labor rate is $25 per hour, what is the per-unit cost of each product?
Markham Farms reports the following contribution margin income statement for the month of August. The company has the opportunity to purchase new machinery that will reduce its variable cost per unit by $2 but will increase fixed costs by 15%. Prepare a projected contribution margin income statement for Markham Farm assuming it purchases the new equipment. Assume sales level remains unchanged.
Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120