to.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fmycstate.cincinnatistate.edu%252-webappsiLindon Company is the exclusive distributor for an automotive product that sells for $26.00 per unit and has a CM ratio of 30%. Thecompany's fixed expenses are $132,600 per year. The company plans to sell 18,800 units this year.Required:1. What are the variable expenses per unit? (Round your "per unit" answer to 2 decimal places.)2. What is the break-even point in unit sales and in dollar sales?3. What amount of unit sales and dollar sales is required to attain a target profit of $54,600 per year?4. Assume that by using a more efficient shipper, the company is able to reduce its variable expenses by $2.60 per unit. What is thecompany's new break-even point in unit sales and in dollar sales? What dollar sales is required to attain a target profit of $54,600?1. Variable expense per unit2. Break-even point in units2. Break-even point in dollar sales3. Unit sales needed to attain target profit3. Dollar sales needed to attain target profit4. New break-even point in unit sales4. New break-even point in dollar sales4. Dollar sales needed to attain target profitQ SearchSavedWPrev1 of 1Next >FE

1. CM Ratio: Contribution Margin Ratio, the percentage of selling price that covers expenses.2.…

Answered: Lindon Company is the exclusive…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Given the price and cost data shown in the accompanying table for each of the three firms, F, G, and H: (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Firm F G H Sale price per unit $18.00 $21.00 $30.00 Variable operating cost per unit 6.75 13.50 12.00 Fixed operating cost 45,000 30,000 90,000 a. What is the operating breakeven point in units for each firm? b. How would you rank these firms in terms of their risk?
Desk company has a product that it currently sells in the market for $80 per unit. Does develop a new feature that if added to the 16 product will allow desk to receive a price of $95 per unit.
(a) Xesta Limited (XL) operates an incubation centre for its new product(s) ideas. This centre purchases raw materials and any complete output is sold at a price as part of its test marketing independently. The centre fixes prices to make a standard gross profit percentage on sales of 25%.The following information is available for the year ended 28 February 2019.Inventory (1 March 2018) Shs 243 million; purchases for the year Shs 595.6 million; purchase returns Shs 41.2 million; inventory (28 February 2019) shs 261.7 million.Required: Compute the sales made by the centre for the year ended 28 February 2019.(b)The following information relates to the main operations of Xesta Limited (XL) for the year ended 28 February 2019.1. On 1 March 2018, the summary of assets and liabilities were as follows; cash at Hand Shs 42,300,000; shs Cash at Bank Shs 40,800,000; Trade payables Shs 60,500,000 and rent outstanding Shs 2,480,000.2. The following information relates to transactions that look…
Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019:LatexFeatherAnnual sales (in pairs)12,0008,000Selling price£30£30Variable costs per pair:Materials£12£12Labour-machining (£8/hr)£2£2-assembly (£7/hr)£2.50£2.50-packing (£6/hr)£0.30£0.30Variable overheads£0.20£0.20Annual total fixed costs are currently £150,000.For 2020 financial year, Xu Ltd intends to keep Latex pillows as it is but plans to improve Feather by using high quality materials. As a result, the company has negotiated with another supplier and the new material cost for Feather pillows is expected to be £17 a pair, with the new selling price of £45 per pair.Also, Feather pillow's Labour cost for machining will increase to £4.Also in 2020, the company intends to launch a new pillow, the Memory foam, a top of the range pillow with a selling price of…
Xu Ltd currently produces and sells two types of pillows that are currently gaining marketshare. The two types of pillows are Latex and Feather. Below are the costs and salesdetails of the two types of pillows for 2019: Latex FeatherAnnual sales (in pairs) 12,000 8,000Selling price £30 £30Variable costs per pair:Materials £12 £12Labour-machining (£8/hr) £2 £2 -assembly (£7/hr) £2.50 £2.50 -packing (£6/hr) £0.30 £0.30Variable overheads £0.20 £0.20Annual total fixed costs are currently £150,000.For 2020 financial year, Xu Ltd intends to keep Latex pillows as it is but plans to improveFeather by using high quality materials. As a result, company has negotiated withanother supplier and the new material cost for Feather pillows is expected to be £17 apair, with the new selling price of £45 per pair.Also, Feather pillow’s Labour cost for machining will increase to £4.Also in 2020, the company intends to launch a new pillow, the Memory foam, a top ofthe range pillow with a selling price of…
Conley Company has fixed costs of $23,460,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $355 $220 $135 Zoro 255 200 55 The sales mix for products Yankee and Zoro is 75% and 25%, respectively. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below. Open spreadsheet Determine the break-even point in units of Yankee and Zoro of the overall (total) product, E. If required, round your answers to the nearest whole number. Product Yankee: fill in the blank 2 unitsProduct Zoro: fill in the blank 3 units
ELLA T., Inc. has annual sales of 5,400 units; management decides to establish the EOQ model. The firm has two possible suppliers: Supplier A Shipping costs $1,000 Per-unit carrying costs $70 Supplier B Shipping costs $900 Per-unit carrying costs $81 What is the EOQ for each supplier? Round your answers to the nearest whole number. Supplier A: units Supplier B: units If the firm establishes a safety stock of 108 units, what is the firm's average inventory for both suppliers? Use the rounded value from the previous question. Round your answers to the nearest whole number. Supplier A: units Supplier B: units What will be the firm's expected maximum and minimum inventory with each supplier? Use the rounded value from the previous questions. Round your answers to the nearest whole number. Units Minimum Maximum Supplier A: Supplier B: If delivery takes nine days, what should be the firm's level of inventory when it places an…
Muscat Gases ,Sultanate of Oman. Market research information suggest that the product should sell at 30,000 units at OMR 280 per unit. The company seeks to make a mark- up of 40% on product cost. Estimate the cost price per unit. a. OMR 200 b. OMR 60 c. OMR 180 d. OMR 210
Amber Company has the following information available for September 2017 Unit selling price of video game consoles $500 Unit variable costs $350 Total fixed costs $72,000 Units sold 720 Instructions (a) Prepare a CVP income statement that shows both total and per unit amounts. (b) Compute Amber breakeven point in units (c) Prepare a CVP income statement for the breakeven point that shows both total and per unit amounts
A firm buys and sell two models, P and Q. The following unit’s cost are available (all figures are in GHc and all the cost are borne by the firm). P Q Purchase 100 200 Delivery cost from supplier 20 30 Delivery costs to customer 22 40 Packaging costs 15 18 Selling price 150 300 Required: calculate the figure to be included in closing inventory for a unit each model, according o IAS 2 Inventories.
Xu Ltd currently produces and sells two types of pillows that are currently gaining market share. The two types of pillows are Latex and Feather. Below are the costs and sales details of the two types of pillows for 2019: Latex FeatherAnnual sales (in pairs) 12,000 8,000 Selling price £30 £30Variable costs per pair:Materials £12 £12 Labour-machining(£8/hr) £2 £2 -assembly(£7) £2.50 £2.50 -packing (£6/hr) £0.30 £0.30Variable overhead £0.20 £0.20 Annual total fixed costs are currently…
Complete this question by entering your answers in the tabs below. Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. Manufacturing costs Direct materials $ 35 per unit Direct labor $ 55 per unit Overhead costs Variable $ 30 per unit Fixed $ 7,350,000 (per year) Selling and administrative costs for the year Variable $ 775,000 Fixed $ 4,500,000 Production and sales for the year Units produced 105,000 units Units sold 75,000 units Sales price per unit $ 360 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Net income (loss)

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