Company XYZ sells two products: AAA and BBB. Product BBB has a lower selling price but higher contribution margin compared to product AAA. Assume that the factory has fixed production capacity. If Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which one of the following is likely to happen? Select one: O a. Total profit will increase O b. None of the given answers O c. Total sales will increase O d. Total profits will decrease e. Total profits will remain the same
Q: Company X has two products: Product A and product B. Product A has a higher selling price but a…
A: Solution Concept If a product line has high selling price but a lower contribution margin it implies…
Q: Variable cost per unit $ 89.87 $ 176.86 $ 178.92 Time on the constraint (minutes) 1.90 3.70 3.60…
A: Contribution margin : Contribution margin refers to the contribution earned by the company from the…
Q: XYZ Company wishes to gain more market share . In order to do that , the company is planning to…
A: Variable cost is a cost that remains the same on a per unit basis and varies according to units…
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: Hi student Since there are multiple questions, we will answer only first question. If you want…
Q: :When performing sales mix analysis, which one of the following is true Shifting the sales mix to…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: When performing sales mix analysis, which one of the following is true: O a. The sales mix is…
A: The sales mix is a formula that specifies how much of each product a company sells in relation to…
Q: George and Gracie both make the same product, and sell it for the same sales price. Gracie has a…
A: Break-even analysis is a technique widely used by the production department. It helps to determine…
Q: If Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which…
A: Profit :- Profit is the excess amount that we earned after selling a product at a particular price…
Q: company's total sales remain same but the sales mix shifts toward selling more of the product with…
A: Contribution margin (CM), or dollar contribution per unit, is the selling price per unit minus the…
Q: Company X sells two products: Model A and Model B. The company has a fixed production capacity.…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: Unit Costs Variable Cost (in Direct materials 2 Direct labor 2.4 Indirect Manufacturing 1.6…
A: Solution: Relevant Variable cost = Direct materials + direct labor + indirect manufacturing +…
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: The contribution margin can be expressed in either gross or per-unit terms. After deducting the…
Q: rsity produces a product company curren selling 9,360 the product which represent £143,400. Total…
A: Cost profit volume analysis helps to identify the posts under variable and fixed categories. Sales…
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: Break even point = Fixed costs / Weighted average contribution margin When more units of the product…
Q: A firm presently has total sales of P100,000. If its sales rise, its fixed costs will also rise.…
A: There are two types of costing methods, one is Absorption costing and other is Variable costing.…
Q: 1. Due to change in market conditions a company finds that it can sell as many of each of its three…
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Bob's Company sells one product with a variable cost of $5 per unit. The company is unsure what…
A: Variable Cost = $5 Fixed Cost =$ 100000 for all units
Q: If a company increases its selling price by $2 per unit due to an increase in its variable labor…
A: Formula: Contribution margin = sales - variable cost Deduction of variable cost from sales value…
Q: A company produce one type of a prefred car gearbox. In a point of production like 1000 gearbox, the…
A: Break-even Analysis is a method for analysing the relationship between sales revenue, variable…
Q: Barbour Corp, lcoated in Buffalo is a retaier of high end tech products and is known for its…
A:
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: A sales mix is the optimum proportion of the selling products as it enables the company to determine…
Q: Due to change in market conditions a company finds that it can sell as many of each of its three…
A: The contribution margin indicates an amount which the company has to pay over its fixed cost…
Q: Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which one…
A: Contribution is calculated as Sales less variable costs. Sale price is the price at which the…
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: Contribution is the excess amount of sale over variable cost. Basically, it is the sum of fixed cost…
Q: Which one of the following events is most likely to increase the company's overall break-even point?
A: Contribution margin is the difference of sales revenue and variable costs of the product. Given…
Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…
A: Answer
Q: A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total…
A: Formula: Unit contribution margin = Sales price per unit - variable cost per unit
Q: Company XYZ produces and sells two types of calculators : Basic and Scientific The Basic has a lower…
A: Contribution = sales - variable cost
Q: As a manager, you have to choose between two options for new production equipment. Machine A will…
A:
Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…
A: Given, Strategy: Company wants to increase the market share by Doubling the current production and…
Q: Cesar Company has three product lines: A, B and C. The information given below is available. Assume…
A: Operating Income Operating income is described as after deducting the cost of goods sold other…
Q: When performing sales mix analysis, which one of the :following is true .a .The sales mix is usually…
A: Break even point = Fixed costs / Weighted average contribution margin
Q: As a general rule of economics, companies should only produce and sell units as long as ________.…
A: As a general rule of economics, companies should only produce and sell units as long as the…
Q: Brissett Corporation makes three products that use the current constraint, which is a particular…
A: In case of limited resources, product which is having more contribution margin per limited resources…
Q: NUBD Co. manufactures and sells a single product. If the selling price and variable costs both…
A: we know that, Fixed cost in total will remain the same and fixed cost per unit will change as per…
Q: Often the most direct route to a business decision is an incremental analysis. What is meant by an…
A: “Hey, since there are multiple questions posted, we will answer first two questions for you. If you…
Q: Company X and Company Y sells the same product for the same price. Company X has fixed costs of Birr…
A: First we need to calculate breakeven units of sale for both companies by using this equation Break…
Q: When performing sales mix analysis, which one of the following is true: a. Producing and selling…
A: Sales mix is the ratio in which different products are sold in the company. Contribution margin is…
Q: NUBD Co. manufactures and sells a single product. If the selling price and variable costs both…
A: Contribution margin per unit = Selling price per unit - Variable cost per unit Contribution margin…
Q: XYZ Company wishes to gain more market share. In order to do that, the company is planning to double…
A: Selling price: Selling price is a price set by the supplier at which he is ready to sell his goods.…
Q: stion Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a…
A: Contribution is the total amount of profit or loss and fixed cost of the entity. It is obtained when…
Q: A company has two different products that sell to separate markets. Financial data are as follows:…
A: Fixed cost remains constant even though the product B is dropped.
Q: Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower…
A: Given, Company trades in for 2 products with different contribution margin, Contribution margin of…
Q: Brissett Corporation makes three products that use the current constraint, which is a particular…
A: Brissett Corporation makes three products i.e. GK, LQ and XK. Ranking of the same will be done from…
Q: Peyton Company manufactures Phone X and Phone Y. Peyton can sell all it can make of either. Based on…
A: Key factor refers to a factor of production whose availability is limited.
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- Southward Company has implemented a JIT flexible manufacturing system. John Richins, controller of the company, has decided to reduce the accounting requirements given the expectation of lower inventories. For one thing, he has decided to treat direct labor cost as a part of overhead and to discontinue the detailed direct labor accounting of the past. The company has created two manufacturing cells, each capable of producing a family of products: the radiator cell and the water pump cell. The output of both cells is sold to a sister division and to customers who use the radiators and water pumps for repair activity. Product-level overhead costs outside the cells are assigned to each cell using appropriate drivers. Facility-level costs are allocated to each cell on the basis of square footage. The budgeted direct labor and overhead costs are as follows: The predetermined conversion cost rate is based on available production hours in each cell. The radiator cell has 45,000 hours available for production, and the water pump cell has 27,000 hours. Conversion costs are applied to the units produced by multiplying the conversion rate by the actual time required to produce the units. The radiator cell produced 81,000 units, taking 0.5 hour to produce one unit of product (on average). The water pump cell produced 90,000 units, taking 0.25 hour to produce one unit of product (on average). Other actual results for the year are as follows: All units produced were sold. Any conversion cost variance is closed to Cost of Goods Sold. Required: 1. Calculate the predetermined conversion cost rates for each cell. 2. Prepare journal entries using backflush accounting. Assume two trigger points, with completion of goods as the second trigger point. 3. Repeat Requirement 2, assuming that the second trigger point is the sale of the goods. 4. Explain why there is no need to have a work-in-process inventory account. 5. Two variants of backflush costing were presented in which each used two trigger points, with the second trigger point differing. Suppose that the only trigger point for recognizing manufacturing costs occurs when the goods are sold. How would the entries be listed here? When would this backflush variant be considered appropriate?Falsetta Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: ZA JK DHSelling price per unit........................ $402.67 $462.82 $374.06Variable cost per unit....................... $307.53 $344.56 $285.56Time on the constraint (minutes) ...... 6.70 7.30 5.90 Required:a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work! b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
- Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 119.51 $ 226.07 $ 228.96 Variable cost per unit $ 89.87 $ 176.86 $ 178.92 Time on the constraint (minutes) 1.90 3.70 3.60 Required: A. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. B. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?Company XYZ sells two products: AAA and BBB. Product BBB has a lower selling price but higher contribution margin compared to product AAA. Assume that the factory has fixed production capacity. If Company XYZ decided to produce and sell more units of product BBB compared to product AAA, which one of the following is likely to happen? Select one: O a. Total profit will increase O b. Total profits will decrease Oc. None of the given answers d. Total sales will increase e. Total profits will remain the samea) CVP analysis help managers to take better decision. Justify with real life scenario. (b)Paste Corporation has established new plant for the production of new product called “Diazinon”. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following: Process base Order base Variable manufacturing cost per unit..................... Rs14.00 Rs.17.60 Fixed manufacturing cost per year ......................Rs. 2,440,000 Rs. 1,320,000 The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for Diazinon. The yearly fixed selling and admin costs…
- A company is providing its product to the consumer through the wholesalers. The managing director of the company thinks that if the company starts selling through retailers or to the consumers directly, it can increase its sales, charge higher prices and make more profit. On the basis of the following information and consider variable cost is rial 2.50 per unit and fixed cost is rial 50000. (a) Advise the managing director whether the company should change its channel of distribution or not (with calculation and Justification). (b) Provide suggestions and recommendations on the basis of analysis.Bertucci Corporation makes three products that use the current constraint which is a particular type of machine. Data concerning those products appear below: TC GL NG Selling price per unit $ 494.40 $ 449.43 $ 469.68 Variable cost per unit $ 395.20 $ 320.21 $ 373.92 Minutes on the constraint 8.00 7.10 7.60 Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your intermediate calculations to 2 decimal places.)Sprite company must decide on a make or buy decision. A supplier has offered to make the product at the same quality. Fixed marketing costs would be unaffected but variable marketing costs would be reduced by 30%. What is the maximum amount per unit that Sprite can pay the supplier without decreasing its operating income? P6.75 P9.75 P5.75 P5.05
- Onawa Ltd manufactures a top-selling electronic spreadsheet product called Cell 123. Onawa is aboutto release version 8. It divides its customers into 2 groups: new customers and upgrade customers(those who previously purchased Cell 123, version 7 or earlier versions). Although the same physicalproduct is provided to each customer group, sizeable differences exist in selling prices and variablemarketing costs New customers Upgrade customers N$ N$ Selling price 210 120 Variable costs: Manufacturing (25) (25) Marketing (65) (15) The fixed costs of Cell 8 are N514 000 000. The planned ratio of new customers to upgrade customers isexpected to be 6:4 respectively requirement:a) Calculate Onawa Ltd individual break-even point both in units and sales revenue, assuming thatthe customers will come as planned.b) Ifthe planned sales mix is attained, calculate the operating income when 200 000 units are sold.c) The CVP analysis as any management tool has some limitations.…An automated turning machine is the current constraint at Jordison Corporation. Three products use this constrained resource. Data concerning those products appear below: LN JQ RQ Selling price per unit $ 167.36 $ 303.39 $ 411.96 Variable cost per unit $ 136.00 $ 212.11 5 303.18 Minutes on the constraint 1.60 5.60 7.40 Rank the products in order of their current profitability from most profitable to least profitable. In other words, rank the products in the order in which they should be emphasized. (Round your intermediate calculations to 2 decimal places)Glide Behind Corporation manufactures and sells small cargo trailers. The Wheel Division creates parts that are both sold externally and transferred internally to the Assembly Division. Variable production costs of wheel set #102 are $80, and each set sells externally for $150. What would you recommend as the internal transfer price from the Wheel Division to the Assembly Division if a competitive external market exists for wheel set #102? Would your answer change if there were no external market this component? Why? What would the transfer price be if upper management required cost plus 25 percent as the transfer price?