Problem 3-39 (Part Level Submission) Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $434,000 per year. XL-709 CD-918 Sales price $16.00 $31.00 Variable cost 12.00 23.00 Sales volume 86,800 units 130,200 units How many units of each product must Crane Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 25,000.) XL-709 CD-918 Break even units Click if you would like to Show Work for this question: Open Show Work

Problem 3-39 (Part Level Submission) Crane Industries sells two electrical components with the following characteristics. Fixed costs for the company are $434,000 per year. XL-709 CD-918 Sales price $16.00 $31.00 Variable cost 12.00 23.00 Sales volume 86,800 units 130,200 units How many units of each product must Crane Industries sell in order to break even? (Round answers to 0 decimal places, e.g. 25,000.) XL-709 CD-918 Break even units Click if you would like to Show Work for this question: Open Show Work

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter2: Basic Managerial Accounting Concepts

Section: Chapter Questions

Problem 18MCQ: 2-18 Use the following information for Multiple- Choice Questions 2-13 through 2-18: Last year,...

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Use the following information for Multiple-Choice Questions 2-13 through 2-18: Last year, Barnard Company incurred the following costs: Barnard produced and sold 10,000 units at a price of 31 each. 2-17 Refer to the information for Barnard Company on the previous page. The total period expense is a. 276,000. b. 200,000. c. 76,000. d. 40,000. e. 36,000.
Flow of costs and income statement R-Tunes Inc. is in the business of developing, promoting, and selling musical talent online and with compact discs (CDs). The company signed a new group, called Cyclone Panic, on January 1, 20Y8. For the first six months of 20Y8, the company spent $1,000,000 on a media campaign for Cyclone Panic and $175,000 in legal costs. The CD production began on April 1, 20Y8. R-Tunes uses a job order cost system to accumulate costs associated with a CD title. The unit direct materials cost for the CD is: The production process is straightforward. First, the blank CDs are brought to a production area where the digital soundtrack is copied onto the CD. The copying machine can copy 3,600 CDs per hour. After the CDs are copied, they are brought to an assembly area where an employee packs the CD with a case and song lyric insert. The direct labor cost is $0.37 per CD. The CDs are sold to record stores. Each record store is given promotional materials, such as posters and aisle displays. Promotional materials cost $30 per record store. In addition, shipping costs average $0.28 per CD. Total completed production was 500,000 CDs during the year. Other information is as follows: Factory overhead cost is applied to jobs at the rate of $1,800 per copy machine hour. There were an additional 18,000 copied CDs, packages, and inserts waiting to be assembled on December 31, 20Y8. Instructions Determine the balances in the work-in-process and finished goods inventories for the Cyclone Panic CD on December 31, 20Y8.
Flow of costs and income statement R-Tunes Inc. is in the business of developing, promoting, and selling musical talent online and with compact discs (CDs). The company signed a new group, called Cyclone Panic, on January 1, 20Y8. For the first six months of 20Y8, the company spent $1,000,000 on a media campaign for Cyclone Panic and $175,000 in legal costs. The CD production began on April 1, 20Y8. R-Tunes uses a job order cost system to accumulate costs associated with a CD title. The unit direct materials cost for the CD is: The production process is straightforward. First, the blank CDs are brought to a production area where the digital soundtrack is copied onto the CD. The copying machine can copy 3,600 CDs per hour. After the CDs are copied, they are brought to an assembly area where an employee packs the CD with a case and song lyric insert. The direct labor cost is $0.37 per CD. The CDs are sold to record stores. Each record store is given promotional materials, such as posters and aisle displays. Promotional materials cost $30 per record store. In addition, shipping costs average $0.28 per CD. Total completed production was 500,000 CDs during the year. Other information is as follows: Factory overhead cost is applied to jobs at the rate of $1,800 per copy machine hour. There were an additional 18,000 copied CDs, packages, and inserts waiting to be assembled on December 31, 20Y8. Instructions Prepare an annual income statement for the Cyclone Panic CD, including supporting calculations, from the information above.
3- A company, to manufacture 1,000 monthly units of a certain product, makes the following expenses: direct raw material: R$80,000.00; direct labor: $30,000.00; indirect labor: R$45,000.00 and other fixed costs: R$55,000.00. Assuming that direct raw material and direct labor are variable costs and indirect labor is fixed, the unit cost for the company to produce 2500 units is: *a) R$ 150.00b) R$ 144.00c) R$ 155.00d) R$ 160.00
Question iii) Han products manufacturing 40,000 units of part S-9 each year for use of its production line. A this level of activity, the cost per unit for part S-9 is given as follows : DM - $4.60; DL - $12; VMOH $3.60; FMOH $6. An outside supplier has offered to sell 40,000 units of part S-9 each year to Han products for $25 per part. If Han products accepts this offer, the facilities now being used to manufacturing part S-9 could be rented to another company at an annual rental of $80,000. However. Han products has determined that 2/3 of FMOH being applied to part S-9 would continue even if part S-9 were purchased from the outside supplier. Requirement: iii1. Calculate how much profit will increase/decrease if the outside supplier’s offer is accepted.
writers company writers company products 2 products presently the information related to -manufaturing is given below. writers company yr 2018-19 units fortain pen ball point area occupied (sq feet) 10000 20000 variable cost - direct 7000 8000 fixed cost - direct (per unit) 32 25 10 8 rent fixed costper month (indirect-common for all products)…
12 - 13 Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from the previous year follows.Carpet Kleen Floor DeodorizerUnits produced and sold 5,000 4,000Machine hours used 5,000 2,000Sales price per unit P7 P10Variable cost per unit P4 P8Fixed costs of P20,000 per year are presently allocated equally between both products. If the product mix were to change, total fixed costs would remain the same. 12. The contribution margin per machine hour for Floor Deodorizer is: A. P0.25. B. P2.00. C. P4.00. D. P5.00. 13. Assuming there is unlimited demand for both products and Johnson has 10,000 machine hours available, how many units of each product should be produced and sold?Carpet Kleen Floor DeodorizerA. 0 units 0 units B. 0 units 20,000 units C. 5,000 units 10,000 units D. 8,000 units 4,000 units
Rizal Co. consigns 30 hardware products to Bonifacio Co. on January 1, 20x1. The unit cost per hardware product is P8,000. Rizal pays P3,000 in transporting the hardware product to Bonifacio Co. At month-end, Bonifacio remits P230,000 for the sale of 14 hardware products, after deducting the following: 15% commission based on selling price Freight out P20,000 Installation costs 6,000 REQUIRED: Net income recognized by Rizal Co. on the consignment Carrying amount of inventory to be reported in Rizal’s balance sheet
P8-2A Special Order Total cost data follow for Glendale Manufacturing Company, which as a normal capacity per period of 8,000 units of product that sell for $60 each. For the foreseable future, regular sales volume should continue to equal normal capacity. Direct materials $ 100,800 Direct labor 62,400 Variable manufacturing overhead 46,800 Fixed manufacturing overhead (Note 1) 38,400 Selling expense (Note 2) 35,200 Administrative expense (fixed) 15,000 $ 298,600 Notes: 1. Beyond capacity, fixed overhead costs increase $1,800 for each 500 units or fraction thereof until a maximum capacity of 10,000 units is reached. 2. Selling expenses consist of a 6%…
Required information E5-4 and E5-5 [LO 5-1, 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 8,100 Utilities ($100 fixed) 560 Supervisor’s salary 2,900 Maintenance ($350 fixed) 500 Depreciation 750 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove’s linear cost equation for a production level of…
Required information E5-4 and E5-5 [LO 5-1, 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0–1,600 units, and monthly production costs for the production of 1,200 units follow. Morning Dove’s utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 1,500 Direct labor 8,100 Utilities ($100 fixed) 560 Supervisor’s salary 2,900 Maintenance ($350 fixed) 500 Depreciation 750 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Required: 1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove’s linear cost equation for a production level of…
Management Science: XY Company manufactures and sells LCD monitor at P5000 each. The production officer reported the following: Sale price: P5000 per monitor direct materials cost: P1000 per unit direct labor cost: P550 per unit other overhead cost P950 per unit Fixed costs related to the production are also reported: salary of management: P200,000 rent for the factory: P150,000, other salaries: P140,000 depreciation of equipment: P12,000Find the break-even sales revenue