We have been asked to analyze our denim jeans line by labor cost (from $13.00 to $16.00 by $0.25) and sales price (from $23.99 to $36.99 by $1.00). Fixed Cost = $133,050 Material cost per pair = $8.26 Electricity cost per pair = $0.83 Quantity = 26,000 What is the profit at the highest sales price and highest labor cost? O $156,450 O $254,350 O $195,850 O $176,350

We have been asked to analyze our denim jeans line by labor cost (from $13.00 to $16.00 by $0.25) and sales price (from $23.99 to $36.99 by $1.00). Fixed Cost = $133,050 Material cost per pair = $8.26 Electricity cost per pair = $0.83 Quantity = 26,000 What is the profit at the highest sales price and highest labor cost? O $156,450 O $254,350 O $195,850 O $176,350

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 35P: Orman Company produces neon-colored covers for tablets (e.g., iPads). For last year, Orman reported...

See similar textbooks

Similar questions

Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $35000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the total cost per pair of shoes? $95 $168 $67 $39
Waterway Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $35000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 6000 pairs What is the target selling price per pair of shoes? $140 $118 $132 $93
Bramble Corp. has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1500000 ROI 30% Planned production and sales 5000 pairs What is the total cost per pair of shoes? $96 $148 $68 $40
Swifty Corporation has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $15000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 5000 pairs What is the target selling price per pair of shoes? $113 $169 $142 $158
Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units. a)Calculate the break-even point in units. b)Calculate the break-even point to nearest dollar. c)Calculate the break-even point as a percentage of capacity.
A department store has overhead costs of $250, 000 and a linear total cost function. The controller has set thestore’s margin policy using the example of a $140 markup on an item retailing for $500. The controller has alsoestimated that other variable costs on the same retail item selling for $500 are $15.What will the net profit be if sales are $3, 000, 000 ?
Oriole Company has gathered the following information concerning one model of shoe: Variable manufacturing costs $45000 Variable selling and administrative costs $23000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1700000 ROI 30% Planned production and sales 6000 pairs What is the desired ROI per pair of shoes? $58 $140 $85 $143
Coronado Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $43000 Variable selling and administrative costs $37000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 30% Planned production and sales 5000 pairs What is the markup percentage? 150% 193% 675% 266%
Sunland Company has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $40000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 30% Planned production and sales 5000 pairs What is the markup percentage? 193% 675% 270% 150%
QuestionTony’s Textile Company sells shirts for men and boys. The average selling price and variable cost for each product are as follows:Men's Boys'Selling Price $28.80 Selling Price $24.00Variable Cost $20.40 Variable Cost $16.80Fixed costs are $38,400.Required:a. What is the breakeven point in units for each type of shirt, assuming the sales mix is 2:1 in favor of men's shirts? b. What is the operating income, assuming the sales mix is 2:1 in favor of men's shirts, and sales total 9,000 shirts? c. What is meant by a product’s contribution margin ratio and how is this ratio useful in the planning of business operations?
Dream Enterprise wants to know how much it costs to make one (1) unit of their product and how much it priced to sell it. They manufactured 300 units in a single day. They produced 6,000 units in a month. The material cost each day is P9,000, with a fixed cost of P20,000 and a variable cost of P15,000 every month. They also want a 55% markup based on cost. What should their product's total cost and selling price per unit be?
Coronado Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs $40000 Variable selling and administrative costs $20000 Fixed manufacturing costs $160000 Fixed selling and administrative costs $120000 Investment $1800000 ROI 20% Planned production and sales 4000 pairs What is the desired ROI per pair of shoes? $85 $223 $90 $175