Bonita Industries has gathered the following information for one model of its hiking boots: Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs Fixed selling and administrative costs Investment ROI Planned production and sales What is the total cost per pair of boots? $80000 $40000 $190000 $120000 $1700000 30 % 5000 pairs

Bonita Industries has gathered the following information for one model of its hiking boots: Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs Fixed selling and administrative costs Investment ROI Planned production and sales What is the total cost per pair of boots? $80000 $40000 $190000 $120000 $1700000 30 % 5000 pairs

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

See similar textbooks

Similar questions

Kelson Sporting Equipment, Inc., makes two types of baseball gloves: a regular model and a catchers model. The firm has 900 hours of production time available in its cutting and sewing department, 300 hours available in its finishing department, and 100 hours available in its packaging and shipping department. The production time requirements and the profit contribution per glove are given in the following table: Assuming that the company is interested in maximizing the total profit contribution, answer the following: a. What is the linear programming model for this problem? b. Develop a spreadsheet model and find the optimal solution using Excel Solver. How many of each model should Kelson manufacture? c. What is the total profit contribution Kelson can earn with the optimal production quantities? d. How many hours of production time will be scheduled in each department? e. What is the slack time in each department?
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Their sales mix is reflected in the ratio 4:4:1. If annual fixed costs shared by the three products are $1 8840 how many units of each product will need to be sold in order forJj to break even?
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Bramble Corp. has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1500000 ROI 30% Planned production and sales 5000 pairs What is the total cost per pair of shoes? $96 $148 $68 $40
Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $35000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the total cost per pair of shoes? $95 $168 $67 $39
Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the target selling price per pair of shoes? $113 $169 $142 $158
Waterway Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $35000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 6000 pairs What is the target selling price per pair of shoes? $140 $118 $132 $93
Sunland Company has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $40000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 30% Planned production and sales 5000 pairs What is the markup percentage? 193% 675% 270% 150%
Coronado Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $43000 Variable selling and administrative costs $37000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 30% Planned production and sales 5000 pairs What is the markup percentage? 150% 193% 675% 266%
Oriole Company has gathered the following information concerning one model of shoe: Variable manufacturing costs $45000 Variable selling and administrative costs $23000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 6000 pairs What is the desired ROI per pair of shoes? $58 $140 $85 $143
Coronado Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 20% Planned production and sales 4000 pairs What is the desired ROI per pair of shoes? $85 $223 $90 $175