VII. Polytech Inc. produces a laptop. The selling_price_per unit of the laptop is $500. Data for last year's operations follow: Sales (1,000 units) Variable manufacturing overhead Fixed selling and administrative costs 50,000 Direct materials used Direct labor Fixed manufacturing overhead 90,000 Variable selling and administrative 30,000 $500,000 120,000 100,000 60,000 Required: (1) Compute the total manufacturing cost of goods sold (2) Compute the contribution margin (3) Compute the gross margin or gross profit

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 3CE: Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month...
icon
Related questions
Topic Video
Question
VII. Polytech Inc. produces a laptop. The selling price per unit of
the laptop is $500.
Data for last year's operations follow:
Sales (1,000 units)
Variable manufacturing overhead
Fixed selling and administrative costs
50,000
Direct materials used
Direct labor
Fixed manufacturing overhead
90,000
Variable selling and administrative
30,000
$500,000
120,000
100,000
60,000
Required:
(1) Compute the total manufacturing cost of goods sold
(2) Compute the contribution margin
(3) Compute the gross margin or gross profit
(4) Compute the operating income or loss
(5) What is the company's break-even point in number of
units sold?
(6) What is the company's break-even point in $ sales?
Transcribed Image Text:VII. Polytech Inc. produces a laptop. The selling price per unit of the laptop is $500. Data for last year's operations follow: Sales (1,000 units) Variable manufacturing overhead Fixed selling and administrative costs 50,000 Direct materials used Direct labor Fixed manufacturing overhead 90,000 Variable selling and administrative 30,000 $500,000 120,000 100,000 60,000 Required: (1) Compute the total manufacturing cost of goods sold (2) Compute the contribution margin (3) Compute the gross margin or gross profit (4) Compute the operating income or loss (5) What is the company's break-even point in number of units sold? (6) What is the company's break-even point in $ sales?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Performance measurements
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser…
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial And Managerial Accounting
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning