Required: 1. Calculate the total variable cost per unit. 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year.

Q: Newton Company manufactures and sells one product. The company assembled the following projections…

A: Break - Even Point in unit Sales = Total Fixed Cost / Contribution per unit  Variable Cost per unit…

Q: Riveria Co. makes and sells a single product. The current selling price is $39 per unit. Variable…

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

Q: What is the total cost of producing 2,000 tires? Select one: a. $88,000 b. $68,000 c. $98,000 d.…

A: Fixed Manufacturing Cost Per Unit at 1000 tires production Level = $12 Total Fixed Manufacturing…

Q: The company makes a product with the following costs: Direct materials→₱17.00; Direct labor→₱22.00;…

A:

Q: XYZ Company produces speakers for PA systems. The speakers are sold to retail music store for P 30.…

A: B). Calculation of profit  Total sale value =  20000 units x 30 = 600000 Variable cost     = 200000…

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…

A: Solution 1-a:   Sales Price 25 Less: Variable cost per unit 15 Contribution Margin per unit 10…

Q: Newton Company manufactures and sells one product. The company assembled the following projections…

A: SOLUTION- 4-                             MANUFACTURING COST PER UNIT UNDER VARIABLE COSTING…

Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…

A: Selling price per unit: It is the price at which a unit of product is sold in the market. Variable…

Q: Walastik Company makes and sells a popular household product and its annual sales average 14,000…

A:

Q: Unicorn Company has been manufacturing its own seat for its bicycles. The company is currently…

A: Incremental analysis is a decision-making tool used to evaluate financial data and choose between…

Q: Head-First Company plans to sell 5,000 bicycle helmets at $75 each in the coming year. Unit variable…

A: Total Contribution Margin = (Selling priceper unit - Variable costs per unit) x No. of Units sold =…

Q: RantauBags Company plans to sell 10,000 handbags at $400 each in the coming year. Data on cost per…

A: Solution- A      Calculation of Contribution margin Sales (10000 * 400)   4000000 Less-…

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…

A: Solution 4:   Required Contribution margin ratio 40% Therefore, Required Variable Cost ratio 60%…

Q: Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable…

A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…

Q: HASF & Company produces cleaning kits for shotguns. The production capacity available will enable…

A: If the variable cost is more than the offered price for one unit in new offer of purchase of 1500…

Q: HASF & Company produces cleaning kits for shotguns. The production capacity available will enable…

A: Estimated Sale Price of product is computed ascertaining all costs related to manufacture and market…

Q: EasyWriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. Management…

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

Q: itner Corporation manufactures a product that has the following costs:     Per Unit Per Year…

A: Absorption costing: It is a technique that assumes both fixed cost and variable cost as product…

Q: IT Company produces and sell boxes of sign pens for P1,000 per box. Direct materials are P400 per…

A: Fixed overhead cost per unit = Total fixed overhead / Production  = P12,500,000 per year / 100,000 =…

Q: Denver City Manufacturing currently produces 2,000 glasses per month. The following per unit data…

A: Total variable cost per unit = Direct materials + Direct manufacturing labor + Variable…

Q: Gosnell Company produces two products: Clocks and Towers. The projected income for the coming year,…

A: Break-Even Point is point of sales where company earns no profit and neither incur any losses.

Q: Using absorption costing, what is operating income for last year? (Round any intermediary…

A: We have to calculate the operating income under absorption costing. The calculation are as follows

Q: Beantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production…

A: contribution p.u selling price $13 per 2 pack variable cost $4 per baseball, so for 2pack $8…

Q: Calculate the number of helmets Head-First must sell to earn operating income of $81,900.…

A: In this numerical has covered the concept of Cost - Volume-Profit Analysis and Contribution Margin…

Q: Olivian Company wants to earn $360,000 in net (after-tax) income next year. Its product is priced at…

A: As the question has more than 3 sub-parts, the first 3 subparts are answered as per guidelines. If…

Q: Head-First Company plans to sell 4,950 bicycle helmets at $72 each in the coming year. Unit variable…

A: Margin of Safety = Total Sales - Breakeven Sales

Q: GoSnow sells snowboards. Each snowboard requires direct materials of $110, direct labor of $35, and…

A:

Q: Saira Frozen Foods, Inc., produces frozen pizzas. For next year, Saira predicts that 50,000 units…

A: The required calculations are metrics of cost sheet. The calculation is shown in next step

Q: Walastik Company  makes and sells  a popular household product and its annual sales average 14,000…

A: The question is related to Shut down point and shut down cost. The details are given. Shutdown point…

Q: ay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 17,000 units at a…

A: Calculation of Sales commission per unit Sales commission per unit = Selling price per unit X…

Q: RantauBags Company plans to sell 10,000 handbags at $400 each in the coming year. Data on cost per…

A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…

Q: Head-First Company plans to sell 4,400 bicycle helmets at $78 each in the coming year. Unit variable…

A: Contribution margin per unit = Selling price - variable Number of helmet = (Fixed cost + target…

Q: Example: B-ball, Inc. manufactures basketballs as follows: Monthly productive capacity | 12,500…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: a) Ceria Company plans to sell 5,000 bicycle helmets at RM75 each in the coming year. Unit variable…

A: The break-even point is the point where the company is able to cover all its costs but does not make…

Q: Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product…

A: Answer 1 a) Calculation of variable product cost per unit Variable product cost per unit = Direct…

Q: Andretti Company has a single product called a Dak. The company normally produces and sells…

A: 1. Determine the incremental net operating income.

Q: The 82194-SQ company manufactures a product that sells for $25 per unit. At present, the product is…

A: Given that: Fixed costs = $320,000 Variable costs per unit = $15 per unit

Q: Head-First Company plans to sell 5,180 bicycle helmets at $72 each in the coming year. Unit variable…

A: Formula: Margin of safety units = Budgeted sales units - Break even sales units. Margin of safety in…

Q: Pam-Tees Company plans to sell 11,000 T-shirts at $15 each in the coming year. Product costs…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: The Cinnamon Company’s normal sales volume is 500,000 units. The unit cost to make and sell the…

A: Particulars Amount Direct materials  P55.00 Direct Labor (25.00*1.20) 30.00 Variable factory…

Q: Adarmes Adventures manufactures aluminum canoes. In planning for the coming year, CFO Alexis King is…

A: Formulas:

Q: ABC Pillow produces and sells animal pillow for $80.00 per unit. In the first month of operation,…

A: Under absorption costing, gross profit is calculated as excess of sales revenue over cost of goods…

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…

A: Given Selling price = 25 Variable cost (old) = 15 Contribution margin (old)= 25 - 15 = 10…

Q: Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to…

A: Break-even point in units = Fixed costs/Contribution margin per unit Margin of safety in units =…

Q: y-Disc makes Frisbee-type plastic discs. Each 12-inch diameter plastic disc has the following…

A: The Cost Of Goods Sold budget is the estimation of direct expenses (direct material, direct labor,…

Q: If the special order is accepted, the effect on operating income would be a

A: Special order pricing: Special order pricing is a marginal decision made by the company to determine…

Q: Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present,…

A: Contribution margin per unit = selling price per unit - variable cost per unit Contribution margin…

Q: Head-First Company plans to sell 4,400 bicycle helmets at $84 each in the coming year. Unit variable…

A: Break-even units = Fixed cost/Contribution per unit Contribution per unit = Selling price per unit -…

Q: Chillmax Company plans to sell 3,500 pairs of casual shoes at $60 each in the coming year. Product…

A: Formula: Contribution margin = sales - variable cost. Operating income = Contribution margin - fixed…

Q: Jay-Zee Company makes an in-car navigation system. Next year, Jay-Zee plans to sell 16,000units at a…

A: Answer 1) Calculation of Sales Commission per unit sold Sales Commission per unit sold = Selling…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.