Perry, Inc. manufactures metal stampings for automobiles: stick shifts and trim kits. Fixed costs are $146,000. Each stick shift sells for $10 and has variable costs of $8; each trim kit sells for $9 and has variable costs of $5. What are the contribution margins per unit and contribution ratios for door handles and trim kits?  If Perry sells 30,000 stick shifts and 45,000 trim kits, what is operating income? How many stick shifts and trim kits must be sold for Perry to break even?

Q: Vicious Cycle, Inc., produces and sells 2,000 bikes. Selling price per unit $2,000 Variable cost per…

A: Contribution margin per unit = Selling price per unit - Variable Cost per unit

Q: Daily Kneads, Inc., is thinking about having one of its products made by a supplier. The supplier…

A: Relevant incremental cost of making each unit = Relevant cost per unit where, Relevant cost per unit…

Q: what is the incremental effect on the company’s net income?

A:

Q: A manufacturer is considering whether to make or buy a component used in its production. The annual…

A: Formula for total cost: Total cost = Variable cost + Reduced fixed cost

Q: Evercreen manufactures products that sell at $ 37 each. The company can produce 50,000 units per…

A: Special order means when a customer places an order to the firm which is generally larger in…

Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…

A: Break Even Point = Fixed Cost/ ( Sales price - Variable Cost )

Q: Beauty Supplies Company manufactures and sells several ranges of artwork. The average revenue and…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: a) Prepare the incremental analysis for the decision to make or buy the finials. (b) Should Ralph…

A: Incremental Analysis Incremental analysis  compares true cost between available alternatives. This…

Q: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and…

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

Q: Sandhill, Inc. produces three types of balloons—small, medium, and large—with the following…

A: We can see that large balloons contribute the most per unit but it also takes the most machine hours…

Q: Manor, Inc. currently manufactures 1,000 subcomponents per month in one of its factories. The unit…

A: The cheaper of the two buying options to be selected. Cost under option A = 1000 units * $170 per…

Q: Shocking Electronics uses a standard part to make different types of radios. The total cost to make…

A: Working note: Fixed cost incurred if parts outsource Total fixed cost = $40000 $40000*80%=  $32000

Q: Harvey Automobiles uses a standard part in the manufacture of several of its trucks.  The cost of…

A: Operating Income refers to the amount of profit earned from the business operations and deducting…

Q: Dave’s has total fixed costs of $45,000. If the company’s contribution margin is 50%, the income tax…

A: Units need to sell to produce to desired profit = (Fixed costs + Desired profit) / Contribution…

Q: NUBD Co. has only 25,000 hours of machine time each month to manufacture its two products. Product X…

A: In the given question, the number of machine hours is limited and is absence of any information, it…

Q: Bernard Tires sells tires to car dealerships for an average of $30 each. The variable cost of each…

A: Margin of Safety = Current sales - Break even Break even = Fixed Cost/ Sales - Variable cost

Q: The North Pole Company manufactures 2,000 toy trucks per year. The full manufacturing costs per…

A: Fixed cost that cannot be eliminate will form part of cost

Q: Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed…

A: The break-even point (units) refers to the number of total units at which the firm is at no profit…

Q: Damon Industries manufactures 30,000 components per year. The manufacturing costs of the components…

A: Marginal costing is an of costing technique and it is the variable cost of one unit of a product…

Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…

A: The decision to accept the special order is taken by calculating the increase in net operating…

Q: #meta manufactures yoga props such as straps and blocks. Straps are sold to customers at a price of​…

A: Operating income is an accounting figure that measures the amount of profit realized from a…

Q: 1. What is the break-even level in tires? 2. What is the margin of safety, assuming sales total…

A: Comment: The Question is Multipart, so SME will answer only three subparts as per Bartleby…

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A:

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A: Transfer pricing:   Transfer pricing refers to a process of pricing in which one sub-unit of an…

Q: Slugger Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…

A: Tactical decision making:   Tactical decision making is a process in which the company can choose…

Q: The Wood Division of Bramble Corp. manufactures rubber moldings and sells them externally for $50.…

A: Transfer pricing: The amount charged when one division sells the goods or services to another…

Q: The Southern Division of Barstol Company makes and sells a single product, which is a part used in…

A: The lowest acceptable transfer price from the standpoint of the Southern Division should be closest…

Q: Green Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: Make or buy is one of an important and crucial decision need to taken by manager, in this decision…

Q: The Wood Division of Vaughn Manufacturing manufactures rubber moldings and sells them externally for…

A: Given, Variable cost is = $ 25 per unit Fixed cost is = $ 8 per unit Division to transfer = 4300…

Q: Saturn Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: PLEASE GIVE A LIKE YOUR RESPONSE MATTERS  THE CORRECT ANSWER IS OPTION (C) $2,000 decrease

Q: Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78,…

A: Solution:   Particulars Bales Tales Wales Selling Price 55 78 32 Less: Variable Price 20 50…

Q: Ivanhoe, Inc. produces three types of balloons-small, medium, and large-with the following…

A: When some input is in limited capacity , then we need to find out contribution per input. For…

Q: Crane, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company…

A: The cost volume profit analysis can be defined as the method of analyzing the effect of variable…

Q: Newton Company currently produces and sells 6,000 units of a product that has a contribution margin…

A: In the given question, first desired contribution margin per unit to earn target income will be…

Q: Suppose Diamond is currently producing and selling 44,000 bats. At this level of production and…

A: Incremental analysis is made by the company to make the decision of accepting or rejecting a…

Q: Payne Ltd manufactures three products, all of which use the same machine. Only 50,000 machine hours…

A:

Q: The Southern Division of Barstol Company makes and sells a single product, which is a part used in…

A: Contribution Margin per unit from outstand customer = selling price per unit -Variable cost per…

Q: Ancinas Company produces printers and uses a standard part in the manufacture of several of its…

A: Total purchase cost = No. of parts x Purchase cost per part from outside supplier = 43000 x $5.00…

Q: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling…

A: Incremental Revenue = Special order no. of units x Special order sales price per unit = 1,200 x $26…

Q: Schopp Inc. has been manufacturing its own shades for its table lamps. The compan is currently…

A: The company is currently operating at 100%  capacity Variable manufacturing overhead charged @70% of…

Q: a. Compute the break-even point in units.

A: Break Even Points = It is Level of Sales at which Contribution is Equal to Fixed cost and there is…

Q: Clear Sky Sailmakers manufactures sails for sailboats. The company has the capacity to produce…

A: We know: Fixed costs will not change for the special order. So only the variable costs will be…

Q: : By what percentage will profits increase with this change in sales volume? What is the theory…

A:

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A: Given information is: The Croydon division of CC Industries supplies the Hauser division with…

Q: Tom's Toolery is operating at 70% of its productive capacity. It is currently paying $23 per unit…

A: Relevant cost per unit of making = unit-level production costs…

Q: Mackler, Inc. sells a product with a contribution margin of $50 per unit. Fixed costs are $8,000 per…

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: The Croydon division of CC Industries supplies the Hauser division with 100,000 units per month of…

A: Promotional expense refers to the cost, a corporation incurs for marketing its products or services…

Q: NUBD Co. has only 25,000 hours of machine time each month to manufacture its two products. Product X…

A: Product  X Product  Y Contribution margin P50 P64 Divide by: machine hours per unit 5 8…

Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.