The Foundational 15 (Algo) [LO4-1, LO4-2, LO4-3, LO4-4, LO4-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 57,000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 25 $ 18 $ 3 $ 5 $ 627,000 $ 645,000 The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 4-8 (Algo) a. What is the company's break-even point in unit sales?

The Foundational 15 (Algo) [LO4-1, LO4-2, LO4-3, LO4-4, LO4-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 57,000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 25 $ 18 $ 3 $ 5 $ 627,000 $ 645,000 The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. Foundational 4-8 (Algo) a. What is the company's break-even point in unit sales?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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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?
(2) Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $18 per unit. The unit cost for the business to make the part is $21 including fixed costs and $10 excluding fixed costs. If 32,799 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? a.$262,392 cost decrease b.$590,382 cost decrease c.$98,397 cost increase d.$262,392 cost increase
The following information applies to questions 15 and 16: Zeda Limited manufactures three products (A, B and C), with relevant information about each product shown in the table below: Product A B C Demand (units) 250 150 50 Sales price per unit ($) 1440 1590 1584 Contribution per unit ($) 480 530 528 Labour hours per unit 12 10 8 The number of available labour hours is limited to 1700. Question 16: How many units of product B should be produced? Answer:
Please answer parts 4 and 5 and make the answer bold so I can easily spot it. Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $62 per unit. The company’s unit costs at this level of activity are given below: Direct materials $ 8.50 Direct labor 11.00 Variable manufacturing overhead 2.50 Fixed manufacturing overhead 6.00 ($516,000 total) Variable selling expenses 2.70 Fixed selling expenses 4.50 ($387,000 total) Total cost per unit $ 35.20 A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 120,400 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 40% above the present 86,000 units each year if it were willing to increase the fixed selling expenses by $110,000. What…
27. Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level: Fixed administrative cost per unit R90.00 Total fixed manufacturing overhead R120 000 Total fixed marketing cost R50 000 Direct material usage per product 2 kg Direct material price per kilogram R14.50 Total direct labour cost R47 500 Required: All manufacturing cost increases with 10%. The marketing director estimates that sales volume will increase with 5% if an advertising campaign of R10 000 is undertaken. What is the operating income for Jabu? Refer to above. Do you think that it is viable for Jabu to…
Swifty Corporation sells 2200 units of Product A annually, and 7800 units of Product B annually. The sales mix for Product A is Cannot determine from information given. 28%. 78%. 22%.
Capitol Manufacturing sells 4,000 units of Product A annually, and 6,000 units of Product B annually. The sales mix for Product A is Group of answer choices 67%. Cannot determine from information given. 60%. 40%.
1. Jabu manufactures and sells Product X. During the most recent financial period, he sold 500 units at R750 each. There were no units of Product X in opening or closing inventory. Sales people are paid a commission of 5% on sales. The following additional information is available for this sales level:Fixed administrative cost per unit R90.00Total fixed manufacturing overhead R120 000Total fixed marketing cost R50 000Direct material usage per product 2 kgDirect material price per kilogram R14.50Total direct labour cost R47 500Required:All manufacturing cost increases with 10%. The marketing director estimates that sales volume will increase with 5% if an advertising campaign of R10 000 is undertaken. What is the operating income for Jabu? (e) Refer to above. Do you think that it is viable for Jabu to launch the advertising campaign? Select one of the following:No, it is not viable to launch the advertising campaign ORYes, it is viable to launch the advertising campaign
Iakisthike, LLC has two lines of products, Regular and Super, and is thinking about discontinuing the weaker Regular line. If the regular line is dropped, company-wide fixed manufacturing costs would fall by 7%. The following table displays information regarding operations from the most recent year: Regular Super Total Units 7,000 3,000 10,000 Sales $210,000 $750,000 $960,000 Less: Cost of Goods Sold $140,000 $375,000 $515,000 Gross Margin $70,000 $375,000 $445,000 Less: Selling Expenses $70,000 $135,000 $205,000 Operating Income $0 $240,000 $240,000 Variable manufacturing costs included in cost of goods sold amount to $18 per unit for Regular and $109 per unit for Super; other manufacturing costs are fixed. Fixed selling expenses are $7 per unit for Regular and $22 per unit for Super; remaining selling expense amounts are variable. If the Regular line is discontinued, operating income would (increase, decrease, or no change) by $_____
Piper Corp. is operating at 70% of capacity and is currently purchasing a part used in its manufacturing operations for $24 per unit. The unit cost for the business to make the part is $36, including fixed costs, and $26, not including fixed costs. If 15,000 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it? a. $30,000 cost decrease b. $180,000 cost increase c. $30,000 cost increase d. $180,000 cost decrease
This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 of revenue( total revenue is $20million), The amount of shipping cost assigned to the customer by using ABC would be a. Unable to be determined. b.$8,000($0.80per pound shipped) c.$24, 000(2% of the shipping cost) d. $12,000(1% of the shipping cost) e. None of these
5.The following data refer to the company "PLASTICS PRODUCTS S.A.", which produces a single product which is sold for € 24 per unit. Of the 200,000 units produced in 20X3, 160,000 were sold during the financial year. It is noted that the company had no initial stocks of finished and semi-finished products on 1/1/20X3 as well as final stocks of semi-finished products on 31/12/20X3. Below are some additional information regarding the cost of the business during the financial year 20X3. Cost element Value Immediate materials €480.000 Instant work €320.000 Variable G.B.E. €160.000 Stable G.B.E. €480.000 Variable sales expenses €160.000 Fixed sales expenses € 256.000 Calculate the cost of production per unit of output according to marginal and absorbent costing. Calculate the cost of the inventory that will be presented in the Balance Sheet of 31/12/20X3 according to the marginal and absorbent costing. Calculate the operating result of the…