Smirnoff Corp. invested P31,250,000 in a cabinet-making business. It expects to earn a 25% return on its investment in equipment used in the manufacturing the cabinets. Its consultants estimate that 10,000 units of cabinets next year. Estimated costs per unit of cabinet at this level follows: Variable manufacturing costs = P1,562.50; Fixed selling and administrative costs = P625.00; Fixed manufacturing costs = P312.50. To accomplish the company objective, one cabinet should be priced at:

Q: The third In 2020, Al-Nawras Company sold 1,200,000 units of its product at a selling price of 32…

A: Solution :- Old contribution per unit = 32 -22 = $10 per unit Old total contribution = 1,200,000 x…

Q: A company produces 118,473 units of product A annually, which sold at an average price of $31.27 per…

A: The differential profit is the excess of extra revenue over the extra cost due to the new equipment.…

Q: The Shibuya Division of  Mihoyo manufactures "Genshin Impact" and sells them in the Japanese market…

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

Q: 16. Smirnoff Corp. invested P31,250,000 in a cabinet-making business. It expects to earn a 25%…

A: The target selling price can be calculated as target profit per unit plus costs per unit

Q: What would be the total contribution to profit to the company as a whole for 10,000 units…

A: Selling Price for 10,000 units (10,000 * P21) P2,10,000 Relevant Cost:   Variable cost of…

Q: LBRL Asia manufactures three lines of heavy equipment for electrical, chemical, and food producers.…

A: We are in this question requires to calculate the sales, variable cost and total contribution margin…

Q: The management estimates that the following costs and activity would be associated with the…

A: Under absorption costing approach to cost plus pricing method, both variable and fixed manufacturing…

Q: A firm has the capacity to produce 1,000,000 units of a product per year. At present, it is able to…

A: Break-even is the point wherein the company is in a situation of no profit no loss.

Q: Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per…

A: Contribution margin = Sales - Variable costs Operating income = Contribution margin  - Fixed costs

Q: Last year Minden Company Introduced a new product and sold 25,100 units of It at a price of $95 per…

A: In Cost , The. variable . cost and fixed cost and incurred. this is eaten under marginal costing .…

Q: A company that manufactures monitors has fixed costs of $82,000 per annum. The variable costs are…

A: Sales revenue refers to the actual amount of income which is earned by a company or a corporation…

Q: Smirnoff Corp. invested P31,250,000 in a cabinet-making business. It expects to earn a 25% return on…

A: solution: Required net income= P31,250,000 * 25% = P7,812,500 Required income per unit = P7,812,500…

Q: Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $80 per unit.…

A: Degree of Operating Leverage: In accounting, the term "degree of operating leverage" (DOL) refers to…

Q: 16. Smirnoff Corp. invested P31,250,000 in a cabinet-making business. It expects to earn a 25%…

A: Solution: Required income for the year = P31,250,000*25% = P7,812,500 Required net income per unit =…

Q: A factory with capacity of 700,000 units per year operates at 62% capacity. The annual income is…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: Last year Minden Company introduced a new product and sold 25,800 units of it at a price of $95 per…

A:

Q: Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per…

A: Contribution margin = Sales - Variable costs Operating income = Contribution margin  - Fixed costs

Q: CCC Company produce 15,000 units. It estimates the following operating costs for next year:…

A: Given that: Capital invested = $900,000 Target return on investment = 25%

Q: The management estimates that the following costs and activity would be associated with the…

A: Absorption Costing Approach: In manufacturing, absorption costing is a method of costing that…

Q: a. Compute the CM ratio and breakeven points in dollars. b. Compute the operating leverage at last…

A: ANSWER: First let us metion the given values in question relating to product A of last year: Sales…

Q: The market price for a product has been $50 per unit, but competitive pressures have reduced…

A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…

Q: Oleck Inc. produces stereo components that sell at P = $100 per unit. Oleck’s fixed costs are…

A: EBIT means earning before interest and tax. We will calculate the rate of return on new investment…

Q: With respect to its new product launch, Ernst and Anderson Manufacturing Ltd has gathered the…

A: Variable cost are the costs that changes with the change in the output level. Like direct material…

Q: The following information relates to Your Corporation. It produced and sold 50,000 units last month.…

A: Contribution margin: Contribution margin represents the aggregate value of sales revenue present…

Q: Tanner is CEO of Jones Aerospace. The firm manufactures titanium screws utilized on spacecraft. The…

A: We can find out the break even by achieving target net income by following formulas :- Break even…

Q: The National Inc. will produce 5,000 boxes of chocolates next year. Variable costs is 60% of sales,…

A: The question is related to Marginal Costing. The details are given as under Fixed Cost = P160000…

Q: Schweser Satellites Inc. produces satellite earth stations that sell for $105,000 each. The firm's…

A: Answer with ll calculations are as follows

Q: Blossom Footballs, Inc., management expects to sell 15,000 balls this year. The balls sell for $105…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Brecht Ltd produces a standard product which is sold for £85 each. The business incurred variable…

A: The numerical has covered the concept of Break-Even Point. The Break-Even Point is the point where…

Q: Mehmet Group wants to produce the M machines used in the casting industry in the Big Industry. The…

A: Mehmet Group's Annual production and sales units = 20000 units Sales price = cost x 1.35 Workshop…

Q: 2. Annually (10000) units of a product are sold at a price of (12$) per unit, the amount of fixed…

A: Lets understand the basics. Here in this question, we are required to calculate how much should be…

Q: Loessing Compan produced and sold 12,000 units last year with sales price of $45 per unit and unit…

A: Since all direct expenses have been deducted from sales, contribution seems to be the amount of…

Q: The management of Lambda Corporation has received the following forecast for the next year. Sales…

A:

Q: Careless Company manufactures and sells sunglasses. Price and cost data are as follows: Selling…

A: Break even units = Fixed Cost / Contribution Margin per unit

Q: Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's…

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

Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $80 per…

A: Lets start with basic understanding. Degree of operating leverage indicates how much net operating…

Q: Snower Corporation sells product G for $150 per unit, the variable cost per unit is $105, and the…

A: Introduction:- Snower Corporation sells product G for $150 per unit variable cost per unit is $105…

Q: The Blue Co. will produce 25,000 units of product next year. Variable costs ratio is 70%, while…

A: Number of units  = 25,000 Variable cost ratio = 70% Fixed cost  = P 85,000 EBIT  = P 60,000 Price  =…

Q: Valero Company had sales in 2016 of $1,800,000 on 60,000 units. Variable costs totaled $720,000, and…

A: CVP income statement means a statement where expenses are divided in two parts i.e. fixed cost and…

Q: During the current year, OutlyTech Corp. expected to sell 84 000 telephone switches. Fixed costs for…

A: Break even point means a situation where there is no profit no loss. Break even sales = Fixed cost /…

Q: 4. The Janowski Company has three product lines of mugs-A, B, and C- with contribution margins of…

A: The break even sales are the sales where business earns no profit no loss.

Q: Colin Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Sales P90,000 Variable costs -P50,000 Contribution Margin  P40,000 Fixed costs -P30,000…

Q: e required mark-up

A: Product cost (20,000 units @₱25.00) ₱500,000 Selling, general and administrative expenses ₱130,000…