please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image) Smith Company sells its products at $860 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operatingcosts:ActivitySales callsOrder processingDeliveriesSales returns$ 580 per visit$ 190 per orderCost Driver and Rate$85 per order + $0.50 per mile$ 100 per return and $3 restocking per unit returnedSmith Company has gathered the following data pertaining to activities it performed for two of its customers:Number of orders.Number of parts per order.Sales returns:XBT28680Number of returnsNumber of units returned (per return)Number of sales calls15Miles per delivery10Shipping termsFOB, FactoryWhat is Smith's total customer unit-level cost applicable to XBT as a customer?476NINTO22,18010501120FOB, Destination

Unit - level stock application means calculating restocking sales return.

Smith Company sells its products at $860 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns Cost Driver and Rate $ 580 per visit $ 190 per order $ 85 per order + $0.50 per mile $ 100 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Number of orders Number of parts per order Sales returns: XBT 28 680 Number of returns Number of units returned (per return) 76 Number of sales calls 15 Miles per delivery 10 Shipping terms FOB, Factory What is Smith's total customer unit-level cost applicable to XBT as a customer? 4 NINTO 2 2,180 10 50 11 20 FOB, Destination.

Smith Company sells its products at $860 per unit, net 30. The firm's gross margin ratio is 40 percent. The firm has estimated the following operating costs: Activity Sales calls Order processing Deliveries Sales returns Cost Driver and Rate $ 580 per visit $ 190 per order $ 85 per order + $0.50 per mile $ 100 per return and $3 restocking per unit returned Smith Company has gathered the following data pertaining to activities it performed for two of its customers: Number of orders Number of parts per order Sales returns: XBT 28 680 Number of returns Number of units returned (per return) 76 Number of sales calls 15 Miles per delivery 10 Shipping terms FOB, Factory What is Smith's total customer unit-level cost applicable to XBT as a customer? 4 NINTO 2 2,180 10 50 11 20 FOB, Destination.

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

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
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Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The cost of placing an order is 30. The cost of holding one unit of inventory for one year is 15.00. Currently, Ottis places 160 orders of 4,000 plastic housing units per year. Required: 1. Compute the economic order quantity. 2. Compute the ordering, carrying, and total costs for the EOQ. 3. How much money does using the EOQ policy save the company over the policy of purchasing 4,000 plastic housing units per order?
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