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12.18 The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 Variable manufacturing cost per unit Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expenses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales 5.20 6.60 P240,000 900,000 30%

12.18 The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 Variable manufacturing cost per unit Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expenses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales 5.20 6.60 P240,000 900,000 30%

FINANCIAL ACCOUNTING
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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Answer 12.18 and 12.19

Note The continuation of 12.18 is on the above of 12.19 as well as the question.

Answer both the REQUIRED question. Thank you

expected selling price. is 2. Compute the expected selling price if customers are entitled to a 3% sales discount. 12.18 The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 Variable manufacturing cost per unit Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expenses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales 5.20 6.60 P240,000 900,000 30%
Transcribed Image Text:expected selling price. is 2. Compute the expected selling price if customers are entitled to a 3% sales discount. 12.18 The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 Variable manufacturing cost per unit Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expenses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales 5.20 6.60 P240,000 900,000 30%
Required: Compute the selling price per unit that will meet the expected results based on the The company is projecting a selling price that would give them a 25% return on investment. on above data. Show proof of answer. 12.19 The Emmon Company's normal sales volume is 500,000 units. The unit cost to make a sell the product is as follows: 008 P50.00 Direct materials rlon 25.00 s v 10.00 Direct labor Variable factory overhead Fixed factory overhead Variable selling and administrative expenses Fixed selling and administrative expenses 15.00 8.00 7.00 Beginning 2008, replacement cost of direct material is P55 per unit, labor contract provides and increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross sales. Required: Compute the unit selling price to be set up if management desires a profit of 25% based on full costs. in
Transcribed Image Text:Required: Compute the selling price per unit that will meet the expected results based on the The company is projecting a selling price that would give them a 25% return on investment. on above data. Show proof of answer. 12.19 The Emmon Company's normal sales volume is 500,000 units. The unit cost to make a sell the product is as follows: 008 P50.00 Direct materials rlon 25.00 s v 10.00 Direct labor Variable factory overhead Fixed factory overhead Variable selling and administrative expenses Fixed selling and administrative expenses 15.00 8.00 7.00 Beginning 2008, replacement cost of direct material is P55 per unit, labor contract provides and increase of 20% and variable selling costs increase by 10%. Sales discount averages 3% on gross sales. Required: Compute the unit selling price to be set up if management desires a profit of 25% based on full costs. in
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