Oradell Company sells its single product at a price of $60 per unit and incurs the following variable costs 116 Direct material Direct labor Manufacturing overhead Variable manufacturing costs Selling expenses Total variable costs 12 7 Oradells annual fixed costs are $880,000, and Oradell is subject to a 30% income tax rate The number of units of product that Oradell Company must sell annually to break even is Ox0,800 units O22.000 units 35,200 unis
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- 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.Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.S Munoz Corporation sells products for $44 each that have variable costs of $19 per unit. Munoz's annual fixed cost is $560,000. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars M
- 1. Providence Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense lanolevil subivibr The unit product cost under variable costing is: 7,000 mos i h $78 $89 $6 $3 $532,000 $574,000Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $126 per unit, and fixed manufacturing costs are $157,500. Sales are estimated to be 10,000 units. If an amount is zero, enter "O" a. How much would absorption costing operating income differ between a plan to produce 10,000 units and a plan to produce 15,000 units? 141.75 X b. How much would variable costing operating income differ between the two production plans? 136.5 XThe following variable production costs apply to goods made by Baird Manufacturing Corporation: Item Materials Labor Variable overhead Total Units Produced Cost per Unit $15.00 Total variable cost Required Determine the total variable production cost, assuming that Baird makes 11,000, 21,000, or 31,000 units. 5.50 0.75 $21.25 11,000 Check my work 21,000 31,000
- 1. Providence Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative expense Fixed costs: Fixed manufacturing overhead Fixed selling and administrative expense fenolzivil subivibr The unit product cost under variable costing is: 7,000 mos i h $78 $89 $6 $3 $532,000 $574,000CLEAR MY CHOICE Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $90; Variable costs per unit includes: Direct material $15, Direct manufacturing labor $12, Manufacturing overhead $7, and Selling costs $6; Annual fixed costs $70,000. What is the contribution margin percentage? O a. None of the given answers O b. 44.4% O c. 70% O d. 62% O e. 55.6% NEXT PAGE AGE W nere to searchok int erences Required information [The following information applies to the questions displayed below.] 1 T Mc Graw Hill Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: A Q N Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Total manufacturing overhead cost Manufacturing overhead per unit 11. If 8,000 units are produced, what is the total amount of manufacturing overhead cost incurred to support this level of production? What is this total amount expressed on a per unit basis? (Round your "per unit" answer to 2 decimal places.) @ 2 W S X H 7316 command #3 E D 3 C $ 4 - M 2023-01...0.40 PM 2023-01...2.52 PM 2022-12.6.4 ( - C 9 K O ) LO < H L 4) I' P V CO - CA { I + [ E command optio:
- Kubin Company's relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Average Cost per Unit $ 8.10 $ 5.10 $ 2.60 Exercise 1-8 (Algo) Product Costs and Period Costs; Variable and Fixed Costs [LO1-3, LO1-4] 1. Total amount of product cost 2. Total amount of period cost incurred 3. Total amount of product cost 4. Total amount of period cost $6.10 $4.60 $ 3.60 $ 2.10 $ 1.60 Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 23,000 units? 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 23,000 units? 3. For financial accounting purposes, what is the total amount of product costs incurred to make 25,000 units? 4. For…ook int rint rences W ! Required information [The following information applies to the questions displayed below.] Hudson Company reports the following contribution margin income statement. Sales (9,900 units at $225 each) Variable costs (9,900 units at $180 each) Contribution margin Fixed costs Income HUDSON COMPANY Contribution Margin Income Statement For Year Ended December 31 1. Amount of sales 2. Margin of safety $ 1,167,000 900 1. Assume Hudson has a target income of $165,000. What amount of sales (in dollars) is needed to produce this target income? 2. If Hudson achieves its target income, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) % Help DD Save & Exit Submit Check my work F101. Black Ltd manufactures and sells a single product which has the followingcost and selling structure:£/UnitSelling price 50Direct labour 10Direct materials 8Variable overheads 2The direct costs are considered to be variable. The fixed overheads are£600,000. The forecast sales are 30,000 units and the maximum output ofproduct is 35,000 units.Required:(a)Calculate the break-even point in units and the profit at the forecastoutput.(b)One of the managers has suggested that if the selling price was reducedto £40 per unit and with additional advertising cost of £20,000, the saleswould increase to the maximum amount. The manager has suggestedthat for this strategy a cheaper material could be used costing 25% lessthan the original material, however the direct labour cost wouldincrease by £2 per unit. For this new strategy you are to calculate boththe new break-even point in units and the new forecast profit. Explainbriefly if you would recommend the manager’s suggestion to beimplemented.