break-even point
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s…
A:
Q: 3. A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The…
A: There are two type of costs that a business incurs. One is the fixed costs and the other is the…
Q: Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and…
A: Income=Sales-Expenses
Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently…
A: NPV It provides the net present value or worth of an investment. If NPV is calculated considering…
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…
A: GIVEN DATA Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the…
Q: The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production…
A: Lets understand the basics. Transfer price is a price which comes into picture when there is…
Q: RYX Manufacturing Company uses 1,000 units of Chip annually in its production. Order costs consist…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: Kamber, Inc., owns a factory located close to, but not inside, a foreign trade zone. The plant…
A: Inventory refers to the stock that is held by the company for resale purposes or the goods that are…
Q: 7. HEA ltd sells 2,000 bags of cement each year. It is estimated that the cost of holding one bag…
A: EOQ is one of the oldest methods of inventory management where the total holding costs and ordering…
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: Gregg Manufacturing has one plant located in Belgium and another plant located in the United States.…
A:
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…
A: 1. Standard quantity of kilograms of plastic allowed = Actual units manufactured*Standard quantity…
Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently…
A: NPV(Net Present Value) The technique in which the future cash flows are discounted to calculate the…
Q: Peron Appliances is a Spanish company that is considering moving its manufacturing of dishwashers…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Cinta Berhad is a company that produces children body lotion for domestic and overseas market. One…
A: In deciding upon whether to continue producing internally or to purchase from outside supplier,…
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A:
Q: Refer to Murphy Motor Corporation. What is the minimum of the transfer price range for a transfer…
A: Refer to Murphy Motor Corporation. (c)$96 is the minimum of the transfer price range for a transfer…
Q: Topeka Company has a single product called Topek. The company normally produces and sells 80,000…
A: Selling Price Per Unit: It is the amount that one buyer pays to the seller for one unit of purchase.…
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: 1.
Q: The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production…
A: For special order, only variable manufacturing costs are required to be incurred. The fixed…
Q: Jojo Ltd manufactures products, Abbisha and Babbisha, from raw material, Zaro. The raw material is…
A: Answer- Working Note : Particulars Working Amount Raw Material for 2020 `=20000*80% 16000…
Q: TopHam Ltd manufactures two products (Top and Ham) from a joint process each month. The total…
A: Net realizable value of by product = Sale value - Further processing cost = 5000×R9 - 5000×R6 =…
Q: Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Tamarisk Company produces golf discs, which it normally sells to retailers for $8 each. The cost of…
A: Accept or reject a special order is the managerial decision making process that helps in analyzing…
Q: In 2018, SoundSmart Company started its production, specialising in manufacturing motorcycle…
A: When a product is manufactured, there are different costs associated with it. These costs can be…
Q: An electronics company has two contract manufacturers in Asia. Foxconn assembles its tablets and…
A: Combined Shipment: Monthly Demand = Tablets 20000+Laptops 5000= 25000 Annual Demand, A = 25000*12 =…
Q: Alpine Luggage has a capacity to produce 440,000 suitcases per year. The company is currently…
A: Introduction: Special order decisions means accept or reject decisions which involve certain cases…
Q: A manufacturer has a contract to produce 5,000 units of a certain device. The device can be made by…
A: Option A: The device can be made by highly-trained workmen working individually. Option B: The…
Q: Country Jeans Co. has an annual plant capacity of 65,600 units, and current production is 46,300…
A: Revenue = No. of units x Selling price = 16,100 units x $26 each = $418,600 Variable manufacturing…
Q: Crane Company produces golf discs which it normally sells to retailers for $7 each. The cost of…
A: Incremental analysis is considered as one of the comparative decision-making approach. Business…
Q: An electronics company has two contract manufacturers in Asia. Foxconn assembles its tablets and…
A: Step 1 About the question: There are actually two situations one is separate ordering strategy and…
Q: Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Jumbo Co. sells a special toy product in Hong Kong. The cost information for the current year is as…
A: The question is based on the concept of Cost Accounting.
Q: Gadson Company produces golf discs which it normally sells to retailers for $7 each. The cost of…
A: a. Prepare an incremental analysis for the special order.
Q: Metalex Roofing Ltd manufactures roofing sheets whose normal selling price is GH¢20 per sheet. The…
A: A manager should make a decision whether to accept a product or not based on the comparison made…
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: Formula: Break even point in units = fixed cost / Unit contribution margin
Q: The XYZ Multinational Corporation has manufacturing facilities in country A and an assembly plant in…
A: Transfer price refers to the price charged by one department of a company from another department…
Q: Rosario Company, which is located in Buenos Aires, Argentina, manufactures a component used in farm…
A: Compute the break-even point in units... Answer)BEP units=Fixed cost/Contribution margin per…
Q: Casio Company produces golf discs which it normally sells to retailers for $7 each. The cost of…
A: Unit price of material = Total Cost of material / Number of units manufactured Unit price of labor =…
Q: Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of…
A: Break even point is that point at which business is neither earning any profit nor any loss.
Q: Orange Products begins producing the same liter of orange juice in Japan. The product costs 250 yen…
A: Cost incurred in Japanese yen will be converted to equivalent US dollar. Sale price in Australian…
Q: The Engine Division of Murphy Motor Corporation uses 5,000 carburetors per month in its production…
A: The question is related to the Transfer Pricing. In general the transfer price will be the Variable…
Q: Beacon, a division of Libra Corporation, is located in the United States. Its effective income tax…
A: Transfer pricing refers to procedure or technique used for pricing transactions between enterprises…
Q: A company contemplating the acceptance of a special order has the following unit cost behavior,…
A: Fixed cost for special order is irrelevant because fixed cost will not change with the special…
Q: Alpha company imports its goods from abroad in large containers, and it uses workers to unload these…
A: Ans. 648,000 LBP
Q: Beacon, a division of Libra Corporation, is located in the United States. Its effective income tax…
A: Minimum Transfer Price that Falcon can offer is $32 (28 - Variable cost + 4 - shipping cost) as…
Q: Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products,…
A: Direct Material price variance = (Actual price per pound - Standard price per pound)*Actual quantity…
Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently…
A: Calculation of Net present value of supplier’s option: Answer: Net present value of supplier’s…
A glass company produces paperweights for export. The paperweights were sold at P125 each which
does not include shipping cost of P20 per paperweights. These paperweights are then marked-up in
Japan of P560 per paperweights. The workers in the factory are paid, on the average, the equivalent
of P420 per day and it is estimated that the average daily output per worker is 70 paperweights. The
cost of the material is estimated at P44 per paperweigh ts. The fixed cost for the operation is P6M a
year. The company operates 288 days a year.
1. What is the break-even point?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?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?Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 5.00 p per unit. Fixed costs are expected to amount to 60,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 3.00 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 10 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina’s national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina’s peso was worth .104 U.S. dollar.) Required:1. Suppose management alters its current plans by spending an additional amount of 5,000 p on advertising and increases the selling price to 6.00 p per unit. Calculate the profit on 60,000 units.2. The Sorde Company has just approached Corrientes to make a special one-time purchase of 10,000 units. These units would not be sold by the sales…
- Corrientes Company produces a single product in its Buenos Aires plant that currently sells for 6.60 p per unit. Fixed costs are expected to amount to 56,000 p for the year, and all variable manufacturing and administrative costs are expected to be incurred at a rate of 2.00 p per unit. Corrientes has two salespeople who are paid strictly on a commission basis. Their commission is 11 percent of the sales revenue they generate. (Ignore income taxes.) (p denotes the peso, Argentina’s national currency. Many countries use the peso as their national currency. On the day this exercise was written, Argentina’s peso was worth $0.010 U.S. dollar.) Required: 1. Suppose management alters its current plans by spending an additional amount of 3,300 p on advertising and increases the selling price to 7.60 p per unit. Calculate the profit on 61,000 units.Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric from overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. $1 = Y106.0 $1 = E0.84 Required: 1. What is the cost of the Y6,890,000 in dollars? 2. How many euros will Chinook receive from the German company in payment for the finished product? 3. What if the exchange rate of dollars for yen was $1 = Y108? What is the cost of the Y6,890,000 in dollars (rounded to the nearest dollar)?Tom Industries has a plant capacity of 70,000 units per month. The company is currently operating at 80% of capacity, resulting in a variable cost per unit of $30 and a fixed cost per unit of $4.10. The regular sales price of Tom's product is $45 per unit. Tom Industries has been asked by Izzy, Inc. to fill a special order for 10,000 units of the product at a special sales price of $40 each. Izzy will market the units in a foreign country under its own brand name. As a result, Tom Industries will have to pay an export attorney a fee of $15,000 to make sure it is complying with export laws and regulations relating to the special order. Additionally, the variable cost per unit will decrease by $5 since sales commissions will not be paid on the special order. You have asked a staff member to calculate the effect on operating income if the special order is accepted. They calculated that the increase in operating income as a result of accepting the special order if…
- The Asian Transmission Co. produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 9 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic. During the quarter ending 30 June, the company manufactured 35,000 helmets, using 32,000 kilograms of plastic in the process. The plastic cost the company RM 208,000. (The currency in Malaysia is the ringgit, which is denoted here by RM.) According to the standard cost card, each helmet should require 0.8 kilograms of plastic, at a cost of RM 7.3 per kilogram. Required: 1. a. What cost for plastic should have been incurred in the manufacture of the 35,000 helmets? b. How much greater or less is this than the cost that was incurred? 2. Break down the difference computed above in terms of a materials price variance and a materials quantity variance.Homestead Jeans Co. has an annual plant capacity of 65,000 units, and current production is 45,000 units. Monthly fixed costs are $54,000, and variable costs are $29 per unit. The present selling price is $42 per unit. On November 12 of the current year, the company received an offer from Dawkins Company for 18,000 units of the product at $32 each. Dawkins Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Homestead Jeans Co. What is the minimum price per unit that would produce a positive contribution margin? Round your answer to two decimal places.$
- Western Jeans Co. has an annual plant capacity of 2,000,000 units, and current production is 1,920,000 units. Monthly fixed costs are $400,000, and variable costs are $9 per unit. The present selling price is $15 per unit. On July 6 of the current year, the company received an offer from Childs Company for 50,000 units of the product at $13 each. Childs Company will market the units in a foreign country under its own brand name. The additional business is not expected to affect the domestic selling price or quantity of sales of Western Jeans Co. Question Content Area a. Prepare a differential analysis dated July 6 on whether to reject (Alternative 1) or accept (Alternative 2) the Childs order. If an amount is zero, enter "0". If required, use a minus sign to indicate a loss. Differential AnalysisReject (Alt. 1) or Accept (Alt. 2) OrderJuly 6 Line Item Description Reject Order(Alternative 1) Accept Order(Alternative 2) Differential Effects(Alternative 2) Revenues $Revenues…Guadalupe Olayo produces grandfather clocks. Each grandfather clock normally sells for $1,500. The following manufacturing cost information per clock is available: Direct materials are $200, labor is $600, variable overhead is $50, and fixed overhead is $40 (based on planned production for the year of 1,200 clocks). Commissions are 10% of selling price, and fixed selling and administrative costs are $70,000. Guadalupe’s tax rate is 25%. A European company has asked Guadalupe to accept a special order for 400 clocks. Due to some minor design changes, the material and labor costs for the special order clocks would increase by 25%. Another production run would have to be scheduled for the special order, since the clocks are different from the regular clocks, at a cost of $2,200. In addition, Guadalupe would have to hire a temporary clerk to process the ISO and export paperwork for shipping to Europe, at a cost of $600. Commissions will be paid at the rate of 5% of the special order…Aranda Company is an import-export company that relocated earlier this year in a foreign trade zone (FTZ) in a southwestern city. The company imports $760,000 of fabric from overseas for resale to clothing companies located in the United States. Aranda purchases and receives the fabric about four months before it is sold and shipped to customers; customers are billed and pay in two months. Duty is assessed at 15 percent of cost, and Aranda faces a 6 percent carrying cost. Required: 1. What is the amount of duty paid by Aranda last year (before locating in the FTZ) and for this year after relocating to the FTZ? 2. What is the amount of carrying cost associated with the duty paid by Aranda last year and for this year after relocating to the FTZ? 3. What is the total duty-related cost for Aranda last year and for this year after relocating to the FTZ? 4. What is the total savings on duty and carrying cost attributable to locating in an FTZ? 5. What if some of the fabric turned out to be…
