The owner of shop is contemplating adding a new product which will require additional monthly payment of Br.6000, variable costs would be Br. 2 per new product & its selling price is Br. 7 each What would be the profit(loss) be if 1000 unit were sold in month?

Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: The Arthur Company manufactures kitchen utensils. The company is currently producing well below its…

A: Variable cost per unit: =Average cost per unit - Fixed cost per unit

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: Contribution margin income statement is a statement which shows variable costs and fixed costs of…

Q: A manufacturer of sunglasses has a fixed cost of $50,000. This manufacturer expects to sell 5,000…

A: The cost can be classified into two categories i.e fixed cost and variable cost. The  FIxed cost…

Q: use the contribution margin approach.

A: Meaning of Contribution Margin Approach Contribution Margin approach is used to calculate the net…

Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Vaughn Manufacturing sells radios for $50 per unit. The fixed costs are $425000 and the variable…

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

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: It costs Mills, Inc. $5 per unit to manufacture 1290 units per month of a product that it can sell…

A: Increment revenue arises when the product is processed further to earn additional revenue over the…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: The point where the total of all the FC of the entity is equal to the contribution, known as…

Q: Mullis Corporation manufactures DVDs that sell for $5.20. Fixed costs are $35,000 and variable costs…

A: The break-even point is the point at which a company is a neither profitable nor losing money. At…

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: For New Equipment: Fixed costs = $150,000 Variable cost = $60 per unit Selling price = $100 per unit…

Q: Derby Phones is considering the introduction of a new model of headphones with the following price…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Mary Williams, owner of Williams Products, is evaluatingwhether to introduce a new product line.…

A: “Since you have asked multiple questions, we will solve the first three questions for you. If you…

Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per​ unit, and…

A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…

Q: related to making this part are $89,000 per year, and allocated fixed costs are $76,000 per year.…

A: Incremental analysis is a tool used in managerial accounting when choosing between alternative…

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: The break even sales are calculated as fixed cost divided by contribution margin ratio.

Q: A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost…

A:

Q: Forrester Company is considering buying new equipment that would increase monthly fixed costs from…

A: Break-even sales in units: The number of units of items that the company must sell to break even is…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: SOLUTION- BREAK EVEN POINT IS THE POINT WHERE TOTAL COST  IS EQUAL TO TOTAL REVENUE I.E THERE IS NO…

Q: A producer of chairs is considering the addition of a new plant to absorb the backlog of demand that…

A: Break even point is the point where revenue is equal to variable cost and fixed cost.

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

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

Q: Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and…

A: The breakeven point in units has been calculated by total fixed cost divided by contribution per…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: The break even sales are the sales at point when business earned no profit or loss

Q: Handy-Maid Cleaning Service is considering off ering anadditional line of services to include…

A: Breakeven sales revenue is that level of sales revenue at which business is not making any profits…

Q: Derby Phones is considering the introduction of a new model of headphones with the following price…

A: (a) Operating profit = Sales - variable cost - fixed cost           = (7,000 x 18) - (7,000 x 7) -…

Q: A manufacturer of calculators has a fixed cost of $24,000 per month. Suppose that the marginal cost…

A: Sale price = $115 Marginal cost = Variable cost per unit = $40 Total fixed costs = $24,000…

Q: A company believes it can sell 5,800,000 of its proposed new optical mouse at a price of $11.00…

A: The question is based on the concept of Financial analysis.

Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Russ has developed a new device, which he hopes to produce and market on a large scale. Russ will…

A: Product cost is cost incurred  that relate to production of unit. It can be direct  cost such as…

Q: One machine has to be purchased to produce a certain product. Two options are available. Machine A,…

A: 1) Machine A   Purchase Cost = 900,000 Production per hour = 50 units Variable cost per Hour = $40…

Q: Frieden’s management is considering a major upgrade to the manufacturing equipment, which would…

A: The contribution income statement is the statement that shows the contribution margin and the…

Q: Shiela Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business to…

A: At break even sales. Sales - Contribution margin - Fixed costs = 0 or  Sales - Contribution margin =…

Q: Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per…

A: Break-Even (in units) = Fixed Costs / Contribution Margin Per Unit Break-Even (in dollars) =…

Q: A small coffee shop currently offers a cup of cafe latte for P107. The variable costs are P62 per…

A: Break Even sales is the point of sales where the firm neither incurs any losses or earns any gains…

Q: Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit…

A: Break even point in units = Fixed cost/contribution margin per unit  Whereas, Contribution margin…

Q: Compute the contribution margin per unit if the machine is purchased.

A: Contribution Margin = Sale Price - Variable Cost Sale Price = $57 per unit Variable Cost = $34 per…

Q: Micro Enterprises has the capacity to produce 10,000 widgets a month, and currently makes and sells…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: A travel agency has a holiday package that sells for OMR 125. Fixed costs are OMR 80000; and at the…

A: Unit Variable cost = Total Variable cost / Number of customers Unit Contribution margin = Selling…

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: At break even sales. Sales - Contribution margin - Fixed costs = 0 or  Sales - Contribution margin =…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P58 per…

A: The Break-even selling price is the price where the organization neither earns any profit nor bears…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…

A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…

Q: The owner of old -Fashioned Berry Pies, S. Simon, is contemplating adding a new line of pies, which…

A: Profit is the amount that is left after deducting all the costs incurred.

Q: Suppose that one of Willcom's sellers sells two types of projects with pricing as follows: Projector…

A: As per Bartleby policy, only 1 question will be solved.  The annual Total cost of inventory is the…

Q: A small coffee shop currently offers a cup of cafe latte for P109. The variable costs are P60 per…

A: Break even point means a situation where the is neither profit nor loss. Sales revenue is sufficient…

Q: Process A has a fixed cost of $160,000 per year and a variable cost of $50 per unit. For Process B,…

A:

Q: Planck, the new owner of the vehicle accessory shop, is considering buying sets of winter tyres for…

A: Profit each month = Monthly revenue - Monthly cost

Q: The NUBD Co. is expecting an increase in fixed costs by P78,750 upon moving their place of business…

A: Solution Given Present breakeven sales 750000 Necessary sales volume to breakeven 975000…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.