1011For questions 10-12, refer to the following problem: A manufacturing company is planning to make a newly developed product. Annual fixed cost for manufacturing of the product is $60,000. The selling price is Sunit, and the variable cost is $6/unit. 10. To break even; the annual production level for the company needs to be at, a. 10,000 units b. 20,000 units c. 15,000 units d. 6,000 units 11. To make profit of $16,000; theannual production level for the company needs to be at, a. 19,000 units b. 19,500 units c. 20,000 units d. 31,000 units 12. If the company sets annual production at 12,000 units, what must the selling price be tobeak even. Assume annual fixed cost is still $60,000 and unit varable cost is $- unit. a. $15/unit b. $10/unit c. $12/unit d. Sunit For questions 13 - 16, refer to the following problem: A company is considering twooptions for production of a part needed in manufacturing process. Cost information for these two options is as follows: \table[[ALTERNATIVE, FIXED COST, VARIABLE COST], [Special - Purpose Equipment, $250,000 peryear, $10 per unit]. [General - Purpose Equipment,$50,000 per year, $20 per unit]] Using the above information, answer the following questions: 13. What is the break even quantity between the two options? a. 20,000units per year b. 40,000 units per year c. 25,000 units per year d. 50,000 units per year What are the total costs under the Specil Pupuse Rqupunent opion for an annual quantily of 50, 000 units? a. $1,000,000 b.,$750.000 c., $500.000 d. SR50,000 What are the total costs under the Constal Pupow Rumprient pption for an anual quantity of 50,000 mits? Si00,000 b., $450,000 c., $800,000 d., $1.050,000 For what range ofouput is the spetwi Pupustequpment the low cost option? a. more thas 40,000 units per year b. more than 20,000 units per year c. 0 - 20,000 unis per year d. 0 = 40,000 unis per year 14.What are the total costs under the Special-Purpose Equipment option for an annualquantity of 50,000 units?$1.000.000b.$750,000C.15.P$500.000$850.000What are the total costs under the General-Purpose Equipment option for an annualquantity of 50,000 units?$400.000b.$450.000$800,000d.$1,050.00016.For what range of output is the Special-Purpose equipment the low-cost option?more than 40,000 units per yearb.more than 20,000 units per year0-20.000 units per yeard.0-40,000 units per year

Name: 1011For questions 10-12, refer to the following problem: A manufactur
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Description: 1011For questions 10-12, refer to the following problem: A manufacturing company is planning to make a newly developed product. Annual fixed cost for manufacturing of the product is $60,000. The selling price is Sunit, and the variable cost is $6/un

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10 For questions 10-12, refer to the following problem: A manufacturing company is planning to make a newly developed product. Annual fixed cost for manufacturing of the product is $60,000. The selling price is $ unit, and the variable cost is $6/unit. 10. To break even; the annual production level for the company needs to be at, a. 10,000 units b. 20,000 units c. 15,000 units d. 6,000 units 11. To make profit of $16,000; the annual production level for the company needs to be at, a. 19,000 units b. 19,500 units c. 20,000 units d. 31,000 units 12. If the company sets annual production at 12,000 units, what must the selling price be to beak even. Assume annual fixed cost is still $60,000 and unit varable cost is S unit. a. $15/unit b. $10/unit c. $12/unit d. S₁ unit For questions 13-16, refer to the following problem: A company is considering two

10 For questions 10-12, refer to the following problem: A manufacturing company is planning to make a newly developed product. Annual fixed cost for manufacturing of the product is $60,000. The selling price is $ unit, and the variable cost is $6/unit. 10. To break even; the annual production level for the company needs to be at, a. 10,000 units b. 20,000 units c. 15,000 units d. 6,000 units 11. To make profit of $16,000; the annual production level for the company needs to be at, a. 19,000 units b. 19,500 units c. 20,000 units d. 31,000 units 12. If the company sets annual production at 12,000 units, what must the selling price be to beak even. Assume annual fixed cost is still $60,000 and unit varable cost is S unit. a. $15/unit b. $10/unit c. $12/unit d. S₁ unit For questions 13-16, refer to the following problem: A company is considering two

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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3. Rosario company, which located in Buenos Aires, Argentina, manufactures a component used in farm machinery. The firm's foxed costs are 4,000 per year. The variable cost of each component is 2,000 and the components are sold for 3,000 each. The company sold 5,000 component during the prior year. Required: 1) Compute the break-even point in units 1. What will the new break-even point be if fixed costs increase by 10 peroent? 2. What was the company's operating income for the prior year? 3. The sales manager believes that a reduction in the sales price to 2,500 will result in orders for 1,200 more components each year. What will the break-even point be if the price is changed? 4. Should the price change discussed in requirement (4) be made?
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Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $12,000. what is the breakeven point in ($) value? Select one: O a. 40,000 O b. 88.000 O C 48.000 O d. None of the given answers O e. 28.000
Provide answer in table format Gelb Company currently manufactures 44,000 units per year of a key component for its manufacturing process. Variable costs are $6.25 per unit, fixed costs related to making this component are $77,000 per year, and allocated fixed costs are $61,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.70 per unit. Calculate the total incremental cost of making 44,000 units and buying 44,000 units. Should it continue to manufacture the component, or should it buy this component from the outside supplier?
7- A part is to be used in the assembly of a product. Alternative 1 is to manufacture it in-house and alternative 2 is to purchase from outside. Determine the break-even quantity per year between the two alternatives using the data gven in the table and =10%. [Note: You may use TC=FC+vQ and TC1=TC2 per year] Alternative 1: A machine will be needed for production: Initial cost of the Manufacture the Part machine will be P=$72,000 and salvage value will be F=s8000 dollars after 6 years of life. The variable production cost will be V=$1.6 per unit. Alternative 2: Purchase the part from Outside The part will be purchased at a cost of v2=$6 per unit. a) 12000 Units b) O 1500 Units c)O 4568 Units d) 3522 Units e) 1364 Units O Leave blank
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装 Suppose a BMW executive in Germany is trying to decide whether the company should continue to manufacture an engine component or purchase it from Frankfurt Corporation for $50 each in the next year. Demand for the coming year is expected to be the same as for the current year, 200,000 units. Data for the current year is as follows: Direct material Direct labor Factory overhead, variable Factory overhead, fixed Total costs $5,000,000 $1,900,000 $1,100,000 $3,000,000 $11,000,000 If BMW makes the components, the unit costs of direct material will increase by 10%. If BMW buys the components, 30% of the fixed costs will be avoided. The other 70% will continue regardless of whether the components are manufactured or purchased. Assume that variable overhead varies with output volume.
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Flex gel produces special type of gel pens with production capacity at normal capacity was 150,000 units. Variable cost =P16 per unit Fixed cost=P900,000 Currently the company was operating at the capacity level of 80% If it wants to earn profit of P600,000, what has to be the price of the product per unit?
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16. Lamar has the following data: Selling Price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 150,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 120,000 per month If Lamar produces and sells 30,000 units, what is the margin of safety in units?