uestion 5 Jolex uses the high-low method of estimating costs. Jolex had total costs of $12232 at its lowest level of activity, when 2372 units were sold. When, at its highest level of activity, sales equaled 7298 units, total costs were $29776. Jolex would estimate fixed costs as: Give your answer as a whole number but do not round your calculations until you get to the final answer. 584

uestion 5 Jolex uses the high-low method of estimating costs. Jolex had total costs of $12232 at its lowest level of activity, when 2372 units were sold. When, at its highest level of activity, sales equaled 7298 units, total costs were $29776. Jolex would estimate fixed costs as: Give your answer as a whole number but do not round your calculations until you get to the final answer. 584

Accounting

27th Edition

ISBN:9781337272094

Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Chapter21: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 21.17EX

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Refer to Exercise 12.14. Suppose that for 20x2, Sanford, Inc., has chosen suppliers that provide higher-quality parts and redesigned its plant layout to reduce material movement. Additionally, Sanford implemented a new setup procedure and provided training for its purchasing agents. As a consequence, less setup time is required and fewer purchasing mistakes are made. At the end of 20x2, the information shown on page 680 is provided. Required: 1. Prepare a report that compares the non-value-added costs for 20x2 with those of 20x1. 2. What is the role of activity reduction for non-value-added activities? For value-added activities? 3. Comment on the value of a trend report.
Refer to Cornerstone Exercise 18.3. Required: 1. Calculate the cost of each unit using variable costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using variable costing? 3. Prepare a variable-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
PROBLEM 2 Elsa, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units? A. $485,000. B. $491,000. C. $494,000. D. $500,000.
PROBLEM 1 Anna Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units? A. $150,000. B. $151,000. C. $152,000. D. $153,000. PROBLEM 2 Elsa, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units? A. $485,000. B. $491,000. C. $494,000. D. $500,000. PROBLEM 3 A review of Olaf Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parry…
Question 5 Company E has the following information on its management books: Total Fixed Costs: $24,000 Sales Volume Forecast: 4,000 units Variable Costs per Unit: $2 What price must Company E charge to break even?
Question 2 Polk Company developed the following information for its product: Per Unit Sales price $90 Variable cost   63) Contribution margin $27 Total fixed costs       $1,080,000 Instructions Answer the following independent questions and show computations using the contribution margin technique to support your answers. How many units must be sold to break even? What is the total sales that must be generated for the company to earn a profit of $60,000? If the company is presently selling 45,000 units, but plans to spend an additional $108,000 on an advertising program, how many additional units must the company sell to earn the same net income it is now making? Using the original data in the problem, compute a new break-even point in units if the unit sales price is increased 20%, unit variable cost is increased by 10%, and total fixed costs are increased by $210,000.
1.    Question 5 Cost Volume Profit Total Company produces one type of machine with the following costs and revenues for the year:   Total revenues $4,200,000   Total fixed costs $1,400,000   Total variable costs $2,800,000   Total units produced and sold 700,000   Required:   (a) What is the selling price per unit?   (b) What is the variable cost per unit?   (c) What is the contribution margin per unit?   (d) What is the breakeven point in units?   (e) How many units must be sold to make an operating profit of $1,000,000 for the year? Required:
1.    Question 5 Cost Volume Profit Total Company produces one type of machine with the following costs and revenues for the year:   Total revenues $4,200,000   Total fixed costs $1,400,000   Total variable costs $2,800,000   Total units produced and sold 700,000   Required:   (a) What is the selling price per unit?   (b) What is the variable cost per unit?   (c) What is the contribution margin per unit?   (d) What is the breakeven point in units?   (e) How many units must be sold to make an operating profit of $1,000,000 for the year? Required: 1 calculate breakeven pont ? 2.calculate quantity that will be produced an operating profit of $100000 3.calculate the quantity of the would produce operating profit 10% of sales dollars 4.calculate breakeven quanity if sales increase by 20 % 5.calculate operating margin if 50000 units are sold .
PROBLEM 1: MAKE or BUY Limos Mfg. has been manufacturing furniture sets and is considering whether tomake or outsource its own seat cushions needed for its chairs. The expected priceof the cushions is P50 per unit. If it continue to produce the company would incur the following unit cost: Directmaterials P13, Direct Labor P15, Variable overhead 5, Fixed overhead (based onthe average production requirement of 10,000 units) P20 for a total of P53. Let us assume that materials and labor costs are expected to increase by 20% nextperiod. Factory overhead costs will remain the same, except that 40% of the fixedoverhead will be eliminated in case the company decides to buy the seat cushionsfrom other suppliers. Moreover, the facilities presently being used in the manufactureof seat cushions can be utilized to manufacture another part of the main product incase such facilities become vacant when the company decides to stop producing theseat cushions. The alternative use of resources would…
2. Model C-V-UA company has the following data about its costs: Variable unit cost:Raw material $2.3Labor $1.2Variable GIF $0.6Fixed monthly costs:GIF $7,500 Depreciation $4,500Salaries $ 36,500Rent $3,700Utilities $ 900 The unit sale price is $12 and sales of 10,000 units are planned.Calculate the safety margin in percentage: __________________With the above data, it calculates the percentage contribution margin.
EA5. LO 2.2Rose Company has a relevant range of production between 10,000 and 25,000 units. The following cost data represents average cost per unit for 15,000 units of production. Using the cost data from Rose Company, answer the following questions: If 10,000 units are produced, what is the variable cost per unit? If 18,000 units are produced, what is the variable cost per unit? If 21,000 units are produced, what are the total variable costs? If 11,000 units are produced, what are the total variable costs? If 19,000 units are produced, what are the total manufacturing overhead costs incurred? If 23,000 units are produced, what are the total manufacturing overhead costs incurred? If 19,000 units are produced, what are the per unit manufacturing overhead costs incurred? If 25,000 units are produced, what are the per unit manufacturing overhead costs incurred?