II. Financial information of a product manufactured and sold during last periods are as follows: Unit sale price: $130 Direct Material Cost $40 Direct Labor Cost $22 Fixed Administration Expenses $50,000 Fixed Marketing Expenses $18,000 Manufacturing Overheads for the last three periods are accrued as follows: $60,000 by 3,000 pieces of production, $68,000 by 3,200 pieces of production, ? $70,000 by 4,000 pieces of production. For the current period it is expected to produce and sell 3,200 pieces. 1. Compute the breakeven points of the current period on quantity and amount, 2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period. 3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?

II. Financial information of a product manufactured and sold during last periods are as follows: Unit sale price: $130 Direct Material Cost $40 Direct Labor Cost $22 Fixed Administration Expenses $50,000 Fixed Marketing Expenses $18,000 Manufacturing Overheads for the last three periods are accrued as follows: $60,000 by 3,000 pieces of production, $68,000 by 3,200 pieces of production, ? $70,000 by 4,000 pieces of production. For the current period it is expected to produce and sell 3,200 pieces. 1. Compute the breakeven points of the current period on quantity and amount, 2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period. 3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 1PB: The following product costs are available for Stellis Company on the production of erasers: direct...

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