Problems: Give the solution and answer Total annual cost Percent Variabled. 75,Total annual costP 300,000250,000250,000150,000100%100Direct materials50Direct laborManufacturing overheadSelling and administrative3010.What selling price will result in a 40% contribution margina. Р33.25b. P39.58с. Р52.78d, P60.0011. What selling price will yield a projected income of P50,000?a. Р35.20b. P36.94c. P41.80d. P42.25Happy Face Company has fixed cost of P500,000 per year, variable.cost of P30per unit, and a selling price of P50 per unit.12. At a production level of 30,000 units, how much is the operating income?a. P 50,000b. P 100,000c. P 150,000d. P 200,00013. The break-even sales in unitsa. 10,000 uitsb. 25,000 unitsc. 27,500 unitsd. 30,000 units 14. The number of units the company must sell to earn an income of P100,000?a. 10,000 unitsb. 25,000 unitsc. 27,500 unitsd. 30,000 units

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Answered: Happy Face Company has fixed cost of…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

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A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin ratio? A.10% B.40% C. 60% D. 90%
Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs? $240,000 $200,000 $260,000 Their fixed costs cannot be determined from the information presented.
A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150
Assume that the moving activity has an expected cost of 80,000. Expected direct labor hours are 20,000, and expected number of moves is 40,000. The best activity for moving is a. 4 per move. b. 1.33 per hour-move. c. 4 per hour. d. 2 per move. e. e None of these.
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases. a. Direct material cost per unit. b. Fees for using a patent of $500,000 plus $0.25 for each unit produced. c. Salary of quality control supervisor. d. Straight-line depreciation per unit on factory equipment. e. Total direct materials cost.
Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?
Identify cost graphs The following cost graphs illustrate various types of cost behavior: For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: A. Total direct materials cost B. Electricity costs of 1,000 per month plus 0.10 per kilowatt-hour C. Per-unit cost of straight-line depreciation on factory equipment D. Salary of quality control supervisor, 20,000 per month E. Per-unit direct labor cost

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Happy Face Company has fixed cost of P500,000 per year, variable.cost of P30 per unit, and a selling price of P50 per unit.