Danisa has fixed expenses of R2 800 per month. He spends R18,53 to manufacture an item.b) Calculate a selling price based on the percentage mark-up of 15% on your cost price in a).What is his cost price per unit when he produces 100 units? Show your calculations.Classwork activity 3.2a)Round the answer up to the next R5.c) Copy and complete the table.46.53 peRUNILS250Total sold1001050Fixed expenses(R)2 800,00Variable expenses (R)Total expenditure (R)Income(R)Profit(R)d) (i) On the same set of labelled axes, draw the expenditure and income graphs.(ii) What does the point of intersection of the two graphs represent?(iii) Write down the approximate number of units sold at the point of intersection.Elana has monthly fixed expenses of R8 730,00.er variable costs to deliver a service is R93,16.Calculate the cost price per unit if she services 50 customers.Show your calculations.Calculate a selling price based on a percentage mark-up of 25%.Round the answer up to the next R10

b) Calculate a selling price based on the percentage mark-up of 15% on your cost price in a). Danisa has fixed expenses of R2 800 per month. He spends R18,53 to manufacture an item. a) What is his cost price per unit when he produces 100 units? Show your calculations. activity 3.2 Round the answer up to the next R5. c) Copy and complete the table. 46.53 pe2 UNiLS Total sold 250 10 50 100 Fixed expenses (R) 2 800,00

b) Calculate a selling price based on the percentage mark-up of 15% on your cost price in a). Danisa has fixed expenses of R2 800 per month. He spends R18,53 to manufacture an item. a) What is his cost price per unit when he produces 100 units? Show your calculations. activity 3.2 Round the answer up to the next R5. c) Copy and complete the table. 46.53 pe2 UNiLS Total sold 250 10 50 100 Fixed expenses (R) 2 800,00

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
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
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Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
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.
Variety Artisans has a bottleneck in their production that occurs within the engraving department. Arjun Naipul, the COO, is considering hiring an extra worker, whose salary will be $45,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,500 more units per year. Currently, the selling price per unit is $18 and the cost per unit is $5.85. Using the information provided, calculate the annual financial impact of hiring the extra worker.
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Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Deuce Sporting Goods manufactures a high-end model tennis racket. The company’s forecasted income statement for the year, before any special orders, is as follows: Fixed costs included in the forecasted income statement are $400,000 in manufacturing cost of goods sold and $200,000 in selling expenses. A new client placed a special order with Deuce, offering to buy 1,000 tennis rackets for $100.00 each. The company will incur no additional selling expenses if it accepts the special order. Assuming that Deuce has sufficient capacity to manufacture 1,000 more tennis rackets, by what amount would differential income increase (decrease) as a result of accepting the special order? (Hint: First compute the variable cost per unit relevant to this decision.)