15. R Corporation produces a single product. Last year, the company hadnet operating income of P50,000 using variable costing. Beginning andending inventories were 13,000 units and 18,000 units, respectively. If thefixed manufacturing overhead cost was P2.00 per unit, what would havebeen the net operating income using absorption costing? *a. P40,000b. P50,000c. P60,000O d. P86,000

Net operating income using absorption costing = Variable net income - Fixed costs released from…

Answered: 15. R Corporation produces a single…

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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Wang Company manufactures and sells a single product that sells for $640 per unit; variable costs are $352 per unit. Annual fixed costs are $985,500. Current sales volume is $4,390,000. Management targets an annual income of $1,315,000. Compute the unit sales to earn the target income. Select one: a. 6.164. Ob. 7,988. O c. 19,383. O d. 3,422. Oe. 4,934.
Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432.000 Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Denominator: (2) Compute the dollar sales to earn the target income.. Numerator: Denominator P M = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
[The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 70,000 Variable expenses 38,500 Contribution margin 31,500 Fixed expenses 23,310 Net operating income $ 8,190 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.) 2. What is the contribution margin ratio? 3. What is the variable expense ratio? 4. If sales increase to 1,001 units, what would be the increase in net operating income?
Kingston Company sells its product for $300 per unit. The company's accountant provided the following cost information: Manufacturing costs Selling costs Administrative costs $20,300 + 46% of sales $13,100+ 23% of sales $25,400+ 8% of sales. What is Kingston Company's contribution margin ratio?
At the end of the accounting period Tubman, Inc. reports operating income of $50,000, a contribution margin of $15, and a fixed overhead rate of $6 per unit. Under variable costing, if this company produces 100 more units of inventory, then operating income: a. will increase by $1,500 b. will decrease by $1,500 c. will increase by $900 d. will decrease by $900 e. will increase by $600 f. will decrease by $600 g. will not be affected h. Cannot be determined
A company's operating income was $75,000 using variable costing for a given period. Beginning and ending inventories for that period were 46,000 units and 51,000 units, respectively. Ignoring income taxes, if the fixed factory overhead application rate was $8.10 per unit, what would operating income have been using full costing? Multiple Choice $32,250. $115,500. Cannot be determined from the information given. $150,000. $102,000.
Bent Tree incurred the following unit costs during the year: variable manufacturing cost, $27; fixed manufacturing cost, $10; variable marketing and administrative cost, $8; and fixed marketing and administrative cost, $6. During the year, Bent Tree produced 30,000 units and sold 25,000 units of product. The selling price was $67 per unit. What was Bent Tree's total gross margin? Multiple Choice None of these. $1,000,000 $400,000 $750,000 $800,000
10 In July, TPM Co. incurred total costs of $60,000 and made 6000 units. In December it produced 4000 units and total costs were $40,000. What is the variable cost per unit? a. S12.00 b. $15.00 c. S10.00 d. $8.00
jagdish
Hanshaben
The following information for the past year for the Blaine Corporation has been provided: Fixed costs: Manufacturing $130,000 Marketing 18,000 Administrative 21,000 Variable costs: Manufacturing $113,000 Marketing 35,000 Administrative 38,000 During the year, the company produced and sold 60,000units of product at a selling price of $19.19 per unit. There was no beginning inventory of product at the beginning of the year. What is the contribution margin for the year?

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