Francois French manufactures cheese, which he normally sells at €20/kg, on which sales commission of 59% is paid. Plant capacity is 7,500 kg/month. Income tax is levied at 30%. Fixed costs Costs per kg. Plant depreciation €8,000 Direct materials €4 Other plant costs 15,000 Direct labor 2 Corporate salaries Var. factory O/H 10,000 3 Advertising 3,000 The number of kilograms to sell to break-even is: 3.273 3,600 3,000 2.300 none of the above
Q: 8. House of Furniture, Inc., purchases from a well known manufacturer and sells them at the retail…
A: Income statement: It is one of the financial statements prepared by an organization. This statement…
Q: The economic order quantity of Mama Inc. is 1,000 unit. They sold their sole product for a selling…
A: At economic order quantity there is minimum holding and carrying cost involve. Economic order…
Q: Jack’s Tracks sells 24,000 custom-designed GoKarts per year. These GoKarts are sold evenly…
A: Option a is the correct answer.
Q: Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and…
A: Income=Sales-Expenses
Q: A manufacturer of vertical blinds purchases raw materials for $17.00 per set of blinds and has a…
A: Overhead means the cost incurred indirect in factory for the production of goods. Manufacturing…
Q: aughn Manufacturing produces a product that requires 3.40 pounds of materials per unit. The…
A: Material is the inventory purchased by the company in order to produce the product for the company.…
Q: Basic Corp. produces and sells a single product. The seling price is P25 and the variable costs is…
A: Here in this question, we are require to answer various question. Lets start with basic…
Q: Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60…
A: Income Statement: An income statement is a financial document that tells you how much money the firm…
Q: DEF Electronics produces and sells printers. Each unit of printer requires materials worth RM120.…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: DEF Electronics produces and sells printers. Each unit of printer requires materials worth RM120.…
A: >Break even point in value is that sales value level which gives neither any profits nor any…
Q: The economic order quantity of Lancer Inc. is 1,000 unit. They sold their sole product for a selling…
A: EOQ refers to the point where the ordering and carrying costs are equal. Because an imbalance in…
Q: The Strawberry Bread Company buys and then sells (as bread) 2.6 million bushels of wheat annually.…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: The economic order quantity of Bulldogs Inc. is 1,000 unit. They sold their sole product for a…
A: Economic order quantity: Economic order quantity refers to the optimum level of quantity that…
Q: If the company has a target profit of $15,000, how many units must be sold
A: Breakeven point: Breakeven point is the point at which the company makes no profit nor loss or it is…
Q: Yang Inc. produces only one product, berry baskets, which it sells for P72 each. Unit variable costs…
A: Operating income is the income generated from normal operations such as buying or selling of goods…
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Break Even Point: Break Even Point is defined as the level where there is no profit…
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: 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: Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60…
A: Contribution margin is simply the difference between sales revenue and total variable expenses.…
Q: The economic order quantity of Bulldogs Inc. is 1,000 unit. They sold their sole product for a…
A: ECONOMIC order quantities is a order quantity which there is minimum holding and carrying cost…
Q: Tito Company sells several products. Information of average revenue and costs are as follows:…
A: Break-even point is the level of sales at which the net operating profit is zero. In other words,…
Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…
A: The income statement indicates the earning of the particular business in an accounting period. It…
Q: break-even point in value
A: Contribution per pack = Selling price per pack - Variable cost per pack Selling price per pack…
Q: It costs Furniture's Manufacturing $0.45 to produce baseballs and Furniture sells them for $4.00 a…
A: A Contribution Margin Income Statement is a statement in which revenues and variable costs are…
Q: ABC Carpentry Enterprise produces unique tables which are being sold at RM800 per unit. The business…
A: Solution Note : There are two questions As per the Q&A guideline we are required to answer the…
Q: HASF Glassworks makes glass flanges for scientific use Material cost Rs.10 per flange and the glass…
A: Variable cost per unit: Material cost = $10 Labour cost ($100 * 2/20)…
Q: Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents…
A: Contribution Margin is the ability of the company to cover its variable cost. It is the balance…
Q: Roe manufactures and sells cloth facial masks. Per unit direct material and direct labor costs are…
A: Total revenues include sale value from masks. Total costs include both variable and fixed costs
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: Roadside Inc. manufactures the Megalite, and is reviewing the product's cost structure. Accounting…
A: Contribution margin is the excess of selling price over and above the variable cost.
Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…
A: Compute the sales levels at which Classical Glasses would prefer to pay a fixed amount of monthly…
Q: A company manufactures a single product with a selling price of ₱180. Fixed expenses total ₱750,000…
A: Selling price (S) = ₱180 Fixed cost (F) = ₱750000 Let V = Variable cost per unit Breakeven units = n…
Q: During August, Marwick’s Pianos, Inc., sold and delivered 56 pianos. Required: 1. Prepare a…
A: Income Statement of business shows all revenues and expenses of the business for the particular…
Q: An organization sells a single product for P40 per unit that it purchases for P20. The salespeople…
A: Break even point means a point where firm is neither earning profit nor incurring any loss. Break…
Q: The Montanah Corporation manufactures jerseys with Ronaldo's signature stamped. Each jersey sells…
A: Given that, Selling price per unit = USD12 variable cost per unit = USD7 Tot fixed cost =…
Q: Marwik Pianos. Inc purchases pianos from a large manufacturer for an average cost of $1,482 per…
A: Operating profit: It refers to the profit earned by business from its operations after deducting…
Q: Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents…
A: A significant cost accounting concept is the contribution margin. Many essential business decisions…
Q: Pharoah Company produces golf discs which it normally sells to retailers for $6 each. The cost of…
A: Incremental analysis is the one wherein the net income from is computed considering two…
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: How many times per year would Item X be ordered? *
A: "Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: Jack's Auto manufactures electric compact cars at $15,000 per unit. The company sells the cars at a…
A: Variable manufacturing cost per unit = $ 15,000 Selling price per unit = $ 45,000 Fixed cost = $…
Q: Healthy Foods Inc. sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: ABC Corporation resells one type of candle. It has 250 working days. Each day, it sells an average…
A:
Q: Alpha company imports its goods from abroad in large containers, and it uses workers to unload these…
A: Ans. 648,000 LBP
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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?Olin Company manufactures and distributes carpentry tools. Production of the tools is in the mature portion of the product life cycle. Olin has a sales force of 20. Salespeople are paid a commission of 7 percent of sales, plus expenses of 35 per day for days spent on the road away from home, plus 0.50 per mile. They deliver products in addition to making the sales, and each salesperson is required to own a truck suitable for making deliveries. For the coming quarter, Olin estimates the following: On average, a salesperson travels 6,000 miles per quarter and spends 38 days on the road. The fixed marketing and administrative expenses total 400,000 per quarter. Required: 1. Prepare an income statement for Olin Company for the next quarter. 2. Suppose that a large hardware chain, MegaHardware, Inc., wants Olin Company to produce its new SuperTool line. This would require Olin Company to sell 80 percent of total output to the chain. The tools will be imprinted with the SuperTool brand, requiring Olin to purchase new equipment, use somewhat different materials, and reconfigure the production line. Olins industrial engineers estimate that cost of goods sold for the SuperTool line would increase by 15 percent. No sales commission would be incurred, and MegaHardware would link Olin to its EDI system. This would require an annual cost of 100,000 on the part of Olin. MegaHardware would pay shipping. As a result, the sales force would shrink by 80 percent. Should Olin accept MegaHardwares offer? Support your answer with appropriate calculations.Marcotti Cupcakes bakes and sells a basic cupcake for $1.25. The cost of producing 600,000 cupcakes in the prior year was: At the start of the current year, Marcotti received a special order for 15,000 cupcakes to be sold for $1.10 per cupcake. To complete the order, the company must incur an additional $700 in total fixed costs to lease a special machine that will stamp the cupcakes with the customers logo. This order will not affect any of Marcottis other operations and it has excess capacity to fulfill the contract. Should the company accept the special order? (Show your work.)
- 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.)Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?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.)
- 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?Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
- Gustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $84,000 for a pound of product. Walt and Jessie Pharmaceutical Co. has the capacity to make 1000 pounds of product per month. The following costs are associated with the company's normal monthly production of the sale of 970 pounds of product: Direct Material per Pound of Product $9,000 Direct Labor per Pound of Product $2,000 Variable MOH per Pound of Product $3,000 Fixed MOH per Pound of Product $3,000 What is the minimum price Walt and Jessie Pharmaceutical Co. would be willing to accept per pound of product for the order? Round your answer to the nearest dollar. Hint: You can solve this problem using the formula for minimum transfer price. Transfer price >= incremental variable costs per unit + (Sacrificed regular contribution margin/ # units transferred) Minimum price = incremental variable costs per unit + ((# units…XYZ Company spends 300,000 dollars on raw materials, 100,000 dollars on a fixed cost, and 150,000 dollars for employees. XYZ Company’s total sale is 700,000 dollars. Calculate the percentage of the profit change, if the XYZ is able to 2% receive a discount on the procurement for the raw materials.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…