Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $12.41 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $551,855 per year. Administrative cost (all fixed) totals $419,190. Comer expects to sell 247,000 strings of light next year. Required: 1. Calculate the break-even point in units. fill in the blank 1 units 2. Calculate the margin of safety in units. fill in the blank 2 units 3. Calculate the margin of safety in dollars. $fill in the blank 3
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $12.41 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $551,855 per year. Administrative cost (all fixed) totals $419,190. Comer expects to sell 247,000 strings of light next year. Required: 1. Calculate the break-even point in units. fill in the blank 1 units 2. Calculate the margin of safety in units. fill in the blank 2 units 3. Calculate the margin of safety in dollars. $fill in the blank 3
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 20E
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Question
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $12.41 per string. The variable costs per string are as follows:
| Direct materials | $1.87 |
| Direct labor | 1.70 |
| Variable factory overhead | 0.57 |
| Variable selling expense | 0.42 |
Fixed
Required:
1. Calculate the break-even point in units.
fill in the blank 1 units
2. Calculate the margin of safety in units.
fill in the blank 2 units
3. Calculate the margin of safety in dollars.
$fill in the blank 3
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