16-8 Jasper's Molds (JM) has been generating sales equal to $360,000 while operating at 72 percent capacity. By what percent must sales increase for JM to be operating at full capacity? (LO 16-2)
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- A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,0002155 Lake Sales had $2,300,000 in sales last month. The contribution margin ratio was 40% and operating profits were $180,000. What sales volume does Lake's need to yield a $370,000 operating profit?B Company recently invested $1,230,000 to be able to produce a new product. The target operating income desired from the new product line is $246,000 annually. B Company anticipates annual sales will be 1,600 units and plans revenue of $1,000 per unit. How much should the markup percentage as a percentage of cost be for B Company to achieve their target operating income? a. 15.38% b 18.17% C. 84.63% 20.00%
- 15 ces ! Required information [The following information applies to the questions displayed below.] Westerville Company reported the following results from last year's operations: Sales Variable expenses Contribution margin Fixed expenses Net operating income. Average operating assets At the beginning of this year, the company has a $120,000 investment opportunity with the following cost and revenue characteristics: $ 200,000 60 $ 90,000 The company's minimum required rate of return is 15%. Sales Margin $ 1,000,000 300,000 700,000 500,000 $ 200,000 $ 625,000 Contribution margin ratio Fixed expenses 4. What is the margin related to this year's investment opportunity? % of salesCompany XYZ produces and sells 4,000 units.at this level, the company is making a profit of $20,000. Assuming total fixed expenses of $1,000 and variable expenses per unit of $0.75, how much was the selling price per unit? O a. 3 O b. 8 O c. O d. 4 O e. 6 S PAGE NEXT PAGE 14:10 to search A O 40) ENG 15-04-2021 hp art sc delete home end 144 %23 24 & num + backspace 6. 8 lock 7 V 8 A U home 1 48 5 0 enter D G K pause ↑ shift 11 C M end alt ctrl6-16 A process plant making 5000 kg/day of a product selling for $1.75/kg has annual variable pro- duction costs of $2 million at 100 percent capacity and fixed costs of $700,000. What is the fixed cost per kilogram at the breakeven point? If the selling price of the product is increased by 10 percent, what is the dollar increase in net profit at full capacity if the income tax rate is 35 percent of gross earnings?
- 15. Orion Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $23 Variable cost per unit: Direct material $4.00 Direct manufacturing labor $1.60 Variable manufacturing Overhead $0.40 Sales commission $2.10 Annual fixed costs $100,000 The company sells 12,000 units at the end of the year. The contribution per unit is? a. $16.50 b. $14.90 c. $18.60 d. $19.0025. Sky High sells helicopters. During the current year, the Company realized $800,000 of sales revenue, $240,000 of variable costs, and $345,000 of fixed costs. Break even revenue in dollars is? a. $212,000 b. $492,858 c. $521, 742 d. $389,525of 2
- 1. Mower Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $120 100% Variable Expenses $48 40% Contribution Margin $72 60% Fixed expenses are $567,000 per month. The company is currently selling 9,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $84,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 600 units. What should be the overall effect on the company's monthly net operating income of this change? A. Decrease of $146,400 B. Increase of $21,600 C. Increase of $77,400 D. Increase of $669,60012. Last year, Kendy Company sold 40,000 units. The contribution margin per unit was $3, and the total fixed expenses were $30,000 for the year. During this year, the fixed expenses are expected to increase to $36,000, but the contribution margin per unit will remain unchanged. How many units will the company need to sell in order to earn the same net operating income as the one earned last year?D) Nuevo Company manufactures a product which sells for P5. At present, the company produces and sells 50,000 units per year. Unit variable manufacturing and marketing expenses are P2.50 and P.50 respectively. Fixed expenses are P70,000 for tactonY overhead and P30,000 for marketing and administration. The sales manager hos proposed that the price be increased to P6. To maintain the present sales volume. advertising must be increased. The company's profit objective is 10% of sales. 2. Compute the additional expenditure the company can afford for advertising. E) The annuUal FC amounted to P798,000. At present, the contribution margin ratio is 42%. 3. Determine the amount of sales if the desired profit is P173,800 net of the ff. fax rates: For the first P100,000 25% In excess of P100,000 35% F) Bosh Company expects to incur the following costs to produce and sell 70,000 units of its product: Variable manufacturing cost Fixed manufacturing cost Variable marketing expense Fixed marketing…
