If fixed costs are $1,484,000, the unit selling price is $232, and the unit variable costs are $101, what is the amount of sales required to realize an operating income of $182,000? a.12,718 units b.6,397 units c.14,693 units d.1,802 units Zeke Company sells 24,100 units at $17 per unit. Variable costs are $7 per unit, and fixed costs are $38,900. The contribution margin ratio and the unit contribution margin are 2% and $17 per unit 59% and $10 per unit 59% and $17 per unit 2% and $7 per unit A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $351,232 and direct labor hours would be 43,904. Actual factory overhead costs incurred were $391,711, and actual direct labor hours were 51,004. What is the amount of overapplied or underapplied manufacturing overhead at the end of the year? a.$16,321 overapplied b.$408,032 overapplied c.$16,321 underapplied d.$56,800 underapplied
Cost-Volume-Profit Analysis
Cost Volume Profit (CVP) analysis is a cost accounting method that analyses the effect of fluctuating cost and volume on the operating profit. Also known as break-even analysis, CVP determines the break-even point for varying volumes of sales and cost structures. This information helps the managers make economic decisions on a short-term basis. CVP analysis is based on many assumptions. Sales price, variable costs, and fixed costs per unit are assumed to be constant. The analysis also assumes that all units produced are sold and costs get impacted due to changes in activities. All costs incurred by the company like administrative, manufacturing, and selling costs are identified as either fixed or variable.
Marginal Costing
Marginal cost is defined as the change in the total cost which takes place when one additional unit of a product is manufactured. The marginal cost is influenced only by the variations which generally occur in the variable costs because the fixed costs remain the same irrespective of the output produced. The concept of marginal cost is used for product pricing when the customers want the lowest possible price for a certain number of orders. There is no accounting entry for marginal cost and it is only used by the management for taking effective decisions.
If fixed costs are $1,484,000, the unit selling price is $232, and the unit variable costs are $101, what is the amount of sales required to realize an operating income of $182,000?
Zeke Company sells 24,100 units at $17 per unit. Variable costs are $7 per unit, and fixed costs are $38,900. The contribution margin ratio and the unit contribution margin are
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that
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