The following is yearly information on two main sources for the company profit:Row materialLabor costUnit madeDemandpricecostPRODUCT A$30$10030001850250PRODUCT B$45$7825002100170The fixed cost is estimated to be $1000 annually.Based on the above information find the following:1- The company yearly profit2- Use goal seek to find the followinga. At what PRODUCT B demand both products will generate the same revenuc?b. How much they should produce from each Product A and B, to reach a profit of $500,00,if the demand of them is equal to .75 of the production and Product A should be 50% ofProduct B.3- If the company will sell the same amount from Product A and Product B which represents 65%for Product A and 76% for Production B, how much they should produce from both the get profitof $750,000

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The following is yearly information on two main sources for the company profit: Row material Labor cost Unit made Demand cost PRODUCT A PRODUCT B $30 $45 $100 $78 The fixed cost is estimated to be $1000 annually. Based on the above information find the following: 1- The company yearly profit 3000 2500 1850 2100 250 170 price

The following is yearly information on two main sources for the company profit: Row material Labor cost Unit made Demand cost PRODUCT A PRODUCT B $30 $45 $100 $78 The fixed cost is estimated to be $1000 annually. Based on the above information find the following: 1- The company yearly profit 3000 2500 1850 2100 250 170 price

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 39E: Cost Classification Loring Company incurred the following costs last year: Required: 1. Classify...

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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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