I just need help with the chart and can you show me how you got the solutions as well. Thanks 346789101213141516171876Cost-Volume-ProfitWakky Company sells widgets for $60 each. The variable cost per widget is $48.60 and the total fixed cost is $639,100annually. Current sales volume is70,000widgets. Management is considering the following changes:20TOTHAlternative #1:Lease a new packaging machine for $20,000 annually which will increase fixed cost but reduce variable cost by $1.20 per widget.2012BagAlternative #2:Increase selling price by 8% to help offset an expected 30% increase in fixed cost.124EN12620Alternative #3:Reduce fixed cost by 50% by moving to a lower rent location. This would cause variable cost to increase by 10%.REQUIRED: Considering the current situation and each possible alternative separately from each other, do the following:1. Complete the grid below for the current level of production and each of the alternatives.For each alternative refer to the current data (round to 3 decimal places if necessary).CurrentUnit selling priceUnit variable costUnit contribution marginContribution margin ratioFixed costsOperating incomeAlternative #1 Alternative #2 Alternative #32. Respond to the questions below in the space provided (round answers to a whole number).Cost-VoF

The relationship between cost, volume, and profit is studied using a cost accounting method known as…

Answered: 0 E 12 13 14 16 18 Cost-Volume-Profit…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 5P

See similar textbooks

Similar questions

Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs per gas grill are 225, and the average price per gas grill is 600. Required: 1. How many gas grills must Gelbart Company sell to break even? 2. If Gelbart Company sells 46,775 gas grills in a year, what is the operating income? 3. If Gelbart Companys variable costs increase to 240 per grill while the price and fixed costs remain unchanged, what is the new break-even point?
Gift Gallery sold 2000 Zooglars during 2022. The following information is provided regarding the Zooglar product: Sales $60300 Variable costs 23300 Fixed costs 10800 Net income $26200 If Gift Gallery sells 30 more units, by how much will its operating income increase? $19 $393 $555 $905
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $11,750 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 211,000 fill in the blank 1 Sales Price Per Unit $2.10 $fill in the blank 2 Variable Cost Per Unit $1.75 $fill in the blank 3 Contribution Margin Per Unit $0.35 $fill in the blank 4 Fixed Costs $49,000 $fill in the blank 5 Break-Even (in units) 140,000 fill in the blank 6 Break-Even (in dollars) $294,000 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $443,100 $fill in the blank 8 Variable Costs 369,250 fill in the blank 9 Contribution Margin…
Anderson Inc. uses packing machines to prepare their product for shipping One machine costs $136,000 and lasts about 5 years before it needs to be replaced. The operating cost per machine is $6.000 a year ignoring taxes, what is the equivalent annual cost of one packing machine if the required rate of return is 12%? Multiple Choice $43,208 $51.036 $43728
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,250 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 214,000 fill in the blank 1 Sales Price Per Unit $2.15 $fill in the blank 2 Variable Cost Per Unit $1.70 $fill in the blank 3 Contribution Margin Per Unit $0.45 $fill in the blank 4 Fixed Costs $67,500 $fill in the blank 5 Break-Even (in units) 150,000 fill in the blank 6 Break-Even (in dollars) $322,500 $fill in the blank 7 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $460,100 $fill in the blank 8 Variable Costs 363,800 fill in the blank 9 Contribution Margin…
Jackson amp; Sons uses packing machines to prepare its products for shipping. One machine costs $178,000 and lasts about 5 years before it needs replaced. The operating cost per machine is $16,000 a year. What is the equivalent annual cost of one machine if the required rate of return is 12 percent? Select one: O O O O O a. $81,006.15 b. $65,378.93 c. $54,224.08 d. $79,004.12 e. $38,556.67
Flanders Manufacturing is considering purchasing a new machine that will reduce variable costs per part produced by $0.10. The machine will increase fixed costs by $12,000 per year. The information they will use to consider these changes is shown here. A. What will the impact be on the break-even point if Flanders purchases the new machinery? Round per unit cost answers to two decimal places. Current New Machine Units Sold 221,000 Sales Price Per Unit $2.10 Variable Cost Per Unit $1.70 Contribution Margin Per Unit $0.40 %24 Fixed Costs $60,000 Break-Even (in units) 150,000 Break-Even (in dollars) $315,000 B. What will the impact be on net operating income if Flanders purchases the new machinery? Current New Machine Sales $464,100 Variable Costs 375,700 Contribution Margin $88,400 Fixed Costs 60,000 Net Income (Loss) $28,400 C. What would your recommendation be to Flanders regarding this purchase? a. The new equipment will increase fixed costs substantially but net income will still…
Subject: accounting
EOQ for manufacturer. Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40.
Trent PLLent Swifty Corporation sells a product for $50 per unit. The fixed costs are $930000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $190000 and variable costs will be 50% of the selling price. The new break even point in units is: O 37200. 43100. O 46500. 44800.
(D) Delta Company produces mobiles and purchases batteries at $30 per unit. The management proposes producing the batteries instead of purchasing them. The annual quantity of batteries is 50,000 units. The costs of producing the batteries are: $20 variable cost per unit, The company will pay an annual rent of $250,000 to rent a new machine to produce the batteries. The general (old) fixed cost for the company is $500,000. Do you advise the company to produce the batteries or to purchase it? Justify? (E) Nile Co. can produce 2 products, � & B; the following data is estimated to help in preparing the production plan for the coming period to maximize the profit: \table[[,A,B],[Price,$30,$50
Engineering Economics Please complete solution with formula, don't use excel or any sofware.

SEE MORE QUESTIONS

Recommended textbooks for you

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

EBK CONTEMPORARY FINANCIAL MANAGEMENT

Finance

ISBN:

9781337514835

Author:

MOYER

Publisher:

CENGAGE LEARNING - CONSIGNMENT

Cornerstones of Cost Management (Cornerstones Ser…

Accounting

ISBN:

9781305970663

Author:

Don R. Hansen, Maryanne M. Mowen

Publisher:

Cengage Learning

SEE MORE TEXTBOOKS