None Total semi fixedunit (Rs)60,000121,20,000111,80,000102,40,00093,00,00083,60,0007cost (Rs)7. A company's flexible budget reveals the following market conditions and costs:Output inunitsSelling price perTotal variablecost (Rs)Total fixed cost(Rs)1,50,0004,18,0001,42,0001,50,0008,18,0001,42,0001,70,00012,78,0001,42,0001,70,00015,78,0001,42,0002,00,00017,78,0001,42,0002,00,00019,02,0001,42,000a) Prepare a schedule showing the total Differential Cost and Incremental Revenue.b) At what level, should the company set its level of production?c) What selling price should be established in order to obtain the most profitable operations for theyears?

Incremental revenue means the change in revenue due to change in output and price. Incremental cost…

Answered: Total semi fixed unit (Rs) 60,000 12…

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 42E: Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller...

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Using the following per-unit and total amounts, prepare a flexible budget at the 14,000-, 15,000-, and 16,000-unit levels of production and sales for Natural Products Inc.:
Preparing a performance report Use the flexible budget prepared in P7-6 for the 29,000-unit level of activity and the actual operating results listed below for the 29,000- unit level. Required: 1. Prepare a performance report. 2. List the major reasons why the actual operating income at 29,000 units differs from the master budget operating income at 30,000 units in Figure 7-12. 3. Given the level at which the company operated, how was its cost control? Item Direct materials: Direct labor:
Sales Revenue Approach, Variable Cost Ratio, Contribution Margin Ratio Arberg Companys controller prepared the following budgeted income statement for the coming year: Required: 1. What is Arbergs variable cost ratio? What is its contribution margin ratio? 2. Suppose Arbergs actual revenues are 30,000 more than budgeted. By how much will operating income increase? Give the answer without preparing a new income statement 3. How much sales revenue must Arberg earn to break even? Prepare a contribution margin income statement to verify the accuracy of your answer. 4. What is Arbergs expected margin of safety? 5. What is Arbergs margin of safety if sales revenue is 380,000?
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units?
Using High-Low to Calculate Predicted Total Variable Cost and Total Cost for Budgeted Output Refer to the information for Speedy Petes above. Assume that this information was used to construct the following formula for monthly delivery cost. TotalDeliveryCost=41,850+(12.00NumberofDeliveries) Required: Assume that 3,000 deliveries are budgeted for the following month of January. Use the total delivery cost formula for the following calculations: 1. Calculate total variable delivery cost for January. 2. Calculate total delivery cost for January.
Nashler Company has the following budgeted variable costs per unit produced: Budgeted fixed overhead costs per month include supervision of 98,000, depreciation of 76,000, and other overhead of 245,000. Required: 1. Prepare a flexible budget for all costs of production for the following levels of production: 160,000 units, 170,000 units, and 175,000 units. 2. What is the per-unit total product cost for each of the production levels from Requirement 1? (Round each unit cost to the nearest cent.) 3. What if Nashler Companys cost of maintenance rose to 0.22 per unit? How would that affect the unit product costs calculated in Requirement 2?
Starburst Inc. has the following items and amounts as part of its master budget at the 10,000-unit level of sales and production: Determine the total dollar amounts for the above items that would appear in a flexible budget at the following volume levels, assuming that both levels are within the relevant range: a. 8,000-unit level of sales and production b. 12,000-unit level of sales and production (Hint: You must first determine the unit selling price and certain unit costs.)
Budgeted unit sales for the entire countertop oven industry were 2,500,000 (of all model types), and actual unit sales for the industry were 2,550,000. Recall from Cornerstone Exercise 18.6 that Iliff, Inc., provided the following information: Required: 1. Calculate the market share variance (take percentages out to four significant digits). 2. Calculate the market size variance. 3. What if Iliff actually sold a total of 41,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?
Budgeted information for X Ltd for the following period, analyzed by product, is shown below: Product A Product B Product C Selling price per unit $11 $10.5 $8 Variable costs per unit $5.8 $6 $5.2 Attributable fixed costs $275000 $337000 $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A 394600, for Product B 591900 and for product C 315680, General fixed costs, which are apportioned to products as a percentage sale are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products. (2) Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect…
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C is 355200, General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (1) Calculate the budgeted profit of X Ltd, and each of its products.
Budgeted information for X Ltd for the following period, analyzed by product, is shown below:                                                                            Product A              Product B                  Product C Selling price per unit                                            $11                          $10.5                             $8 Variable costs per unit                                            $5.8                          $6                                $5.2 Attributable fixed costs                                           $275000               $337000                        $296000 Sales Units for Product A is 444000, for Product B is 666000 and for product C 355200 General fixed costs, which are apportioned to products as a percentage sales are budgeted at $1668000. Required: (Recalculate the budgeted profit of X Ltd. On the assumption that product C is discontinued, with no effect on sales of the other two products. State and justify other…

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