Answered: Luna Sea Sushi, Inc. has total costs of…

Luna Sea Sushi, Inc. has total costs of $130,000 when it sells 40,000 units. If total fixed costs are $30,000, what is variable cost per unit?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

See similar textbooks

Related questions

Q: arts of this multi-part (simple, five-line) flexible budget are based upon the same set of data Ther...

A: In the flexible budget, budgeted costs are shown based on the actual level of output. Variable costs...

Q: Mercedes is assessing which of two windshield suppliersprovides a better environmental design for di...

A: Given as,

Q: A and B are in partnership sharing profits and losses in the ratio 3:2 respectively. Profit for the ...

A: Introduction: Partnership: Its an agreement between two or more partners for forming a business and ...

Q: A five year P1, 000 par value bond pays a 5% annual coupon. Given a YTM of 7%, what is the price of ...

A: Par value of bond (FV) = P 1,000 Coupon rate = 5% Coupon amount (C) = 1000*0.05 = P50 YTM (r) = 7% Y...

Q: A. Determine the income (loss) before income taxes for the year 2011 under Absorption Costing?

Q: QUESTION 9 Total Per unit Sales revenue (30,000 units) $750,000 25 Variable costs 450,000- 15 Contri...

A: Break Even Point refers to a Point there is no profit or loss. In other words Break even point means...

Q: ry on Feb. 1 $280,000 $435,000 Net sales

A: Closing Inventory is the stock at the end of the closing period held by the entity. Markup percent i...

Q: Instruction: Prepare a classified statement of financial position for Melon Company Melon Company St...

A: Statement of Financial Position The purpose of preparing statement of financial position which knows...

Q: Turner Container Company is suffering declining sales of its principal product, non-biodegradable pl...

A: Note: “As the question has more than 3 sub-parts, the first 3 sub parts are answered. If you want th...

Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The ...

A: The correct option will be Debit Cash $ 2,143,712; Debit Discount on issue of Bonds Payable $ 156,...

Q: Jan. Jan. 2 Purchased 5,000 shares of its own stock at $23 cash per share. 5 Directors declared a $2...

A: Sno Date Account Titles Debit Credit 1 Jan'2 Treasury Stock (5,000 shares X $ 23 per share) ...

Q: Operating expenses on the income statement for financial reporting included $10,000 of advertising c...

A: calculation of variable advertising cost per unit are as follows

Q: On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following...

A: The income statement is prepared using various methods as variable costing and absorption costing me...

Q: The December 31, 2019 statement of financial position of Help Company included the following informa...

A: Solution Notes receivable is the account on balance sheet usually under the current asset section if...

Q: Explain why, for large corporations, we should expect a low pay-performance relationship

A: In accounting pay performance relationship refers to the relationship between pay level of employees...

Q: Required: 1. Determine each partner’s share if the first-year profit was $438,000. 2. Independent of...

A: Partner share in the partnership income is the share of income out from the profits as per the terms...

Q: On April 2, 2021, Cullumber Company entered into a contract to supply medication to Laxall Drug Stor...

Q: What amount should be reported as noncurrent liabilities on December 31, 2013? a. 340,000 b. 432,000...

A: Working Capital = Current Assets - Current Liabilities Current Liabilities = Current Assets - Workin...

Q: Dear Bartleby, could you please assist me with solving this question and please provide the calculat...

A: Annual Report: Annual reports, or yearly reports, are extensive archives intended to furnish the use...

Q: On November 1, 2021, Mason Company issued P4,000,000 of 10-year, 8% term bonds dated October 1, 2021...

A: The accrued interest is the current liabilities for the business, which is due for payment but not p...

Q: e Company's Statement of Cash nd finnnri

A: Free Cash Flow refer how much money company has left after payment of all Necessary Expenditure.

Q: Given the following data for Calandrucci Company, calculate the cost of gocds manufactured: In $'s D...

A: Formula: Cost of goods manufactured = Direct materials + Direct labor + Manufacturing overhead + Beg...

Q: Pete's Tennis Shop has the following transactions related to its top-selling Wilson tennis racket fo...

A: FIFO: FIFO stands for First-In, First-Out. In this method inventory purchased first will be sell ou...

Q: Today's Assignment- Mr B aged 63 years, has earned rupees 75,00,000 out of his business . His ex- ...

A: Taxable Income: Taxable income is the base pay whereupon charge is imposed. It incorporates some or ...

Q: independent parties and sent to the client. ___ 2. Proceeding forward through the accounting and con...

A: Audit is an independent examination of records wether profit oriented or not , with a view to expr...

Q: On April 12, Hong Company agrees to accept a 60-day, 10%, $6,100 note from Indigo Company to extend ...

A: For Indigo Company: Accounts payable has been decreased. Notes payable have been increased by the e...

Q: You bought 400 shares of Heavy Metal Inc. at ₱300 per share over the year, you received ₱75 per shar...

A: The total return on shares will comprise of capital gain and dividend on shares.

Q: Deflecta Corporation uses a standard cost system. The standard cost for direct materials is $7 per p...

A: Materials price variance = (Actual price - Standard price)*Actual quantity Materials quantity varian...

Q: Whenever a period is designated in an obligation, the said period shall presumed to have been establ...

A: Ans. Whenever a period is designated in an obligation, the terms specified reflects the benefits and...

Q: Wendy has been a member of an occupational final salary defined benefit pension scheme for 20 years....

A: Expected Pension = (Final average salary/80) * Number of years

Q: You own 20,000 shares of National Co. stock. The company is planning to issue a stock dividend. Befo...

A: Introduction Market value of shares owned after stock dividend is P275,000.

Q: A printer that cost $600 and has been owned for 2 years is traded in for a new one. Depreciation in ...

A: The term profit and loss (P&L) statement refers to a budget that summarizes the revenues, costs,...

Q: 3. Spring Water Corporation has the following selected accounts at March 31, 2020 after posting adju...

A: Introduction

Q: Maxwell Corporation wants to acquire a retail chain store, Good Way. After a few round of talks Good...

A: The acquisition of a business is done to expand the existing business and to take synergy benefit. T...

Q: H. In an effort to improve budgeting, the controller for Zero Products has developed a flexible budg...

A: First of all, we have to calculate the total direct labor hour requirement from the given details

Q: o. Reconcile the variable costing income from operations of $357,500 with the absorption costing inc...

A: The question is based on the concept of Cost Accounting.

Q: Resgan Corporation is a wholesale distributor of truck replacement parts. Initial amounts taken from...

A: The adjustment to the initial amount schedule is given as, Inventory($) Account payable($) sa...

Q: A business loan is amortized constantly through 35 monthly rents, if the first rent is L 8,850 and t...

A: Please see Step 2 for the required information.

Q: On December 1, a company borrowed Php 100,000.00 at 12% per year. The interest will be paid quarterl...

A: Although the first interest payment will happen in the next fiscal year, the company will have to re...

Q: he Lee Company uses a job-order costing system. The following data were recorded for June: Added...

A: Raw material means the material purchased and still not enter in to the production lines. Work in pr...

Q: Under a Contract of Sale, Ana bound herself to deliver a diamond ring to Ben for P50,000 to be used ...

A: Prestation is the object of the contract. It may 1.be an obligation to give, to do or not to do. ...

Q: The premium on a two-year insurance policy expiring on June 30, 2015, was paid in total on July 1, 2...

A: Insurance expenses for the next 2 years have to be apportioned based on the number of months; so, in...

Q: Adonis Corporation issued 10-year, 11% bonds with a par value of $300,000. Interest is paid semiannu...

A: Interest payment per period=Par value×Coupon rate×6 months12 months

Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks. ...

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for you...

Q: 6 years (24 quarters) al value; no BPO life of machine 6 years interest rate and lessee's incrementa...

A: Journal entries (JF) refers to entries which are recorded in the original books of accounts and it i...

Q: Question 8 Which of the following is NOT true about a cash budget? A. A cash budget sets out all cas...

A: Cash Budget - Cash Budget is the statement that shows the cash collection in a month and expected ca...

Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...

A: Formula: Days sales outstanding = ( Accounts receivable / Revenues ) x 365 days

Q: Kyra & Marrke established a partnership type of business in 2021. They have chosen to focus on food ...

A: Mark up is the value that an entity adds to the cost of the product for internal transfer or for ext...

Q: A delivery truck that cost $26,000 has been owned for 3 years and is traded in for another delivery ...

A: Trade in happens when the assets are exchange against the another asset. The accounting basis for re...

Q: ompany has liabilities of $15,500 and $20,200 of owners' equity at the year end

A: Accounting equation (AE) is the equation which forms the basic of accounting and this equation helps...

Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

100%

Help

Luna Sea Sushi, Inc. has total costs of $130,000 when it sells 40,000 units. If total fixed costs are $30,000, what is variable cost per unit?
OUF STIO N A

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
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.
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. 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 November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
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.
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
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.
Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
Suppose that a company has fixed costs of $18 per unit and variable costs $9 per unit when 15,000 units are produced. What are the fixed costs per unit when 12,000 units are produced?
Company A wants to earn $5,000 profit in the month of January. If their fixed costs are $10,000 and their product has a per-unit contribution margin of $250, how many units must they sell to reach their target income? A.20 B. 40 C. 60 D. 120
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?