Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven96,000 kilometers during a year, the average operating cost is 10.3 cents per kilometer. If a truck is driven only 64,000 kilometersduring a year, the average operating cost increases to 11.5 cents per kilometer.Required:1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated withthe fleet of trucks.2. Express the variable and fixed costs in the form Y = a + bX.3. If a truck were driven 80,000 kilometers during a year, what total operating cost would you expect to be incurred?Complete this question by entering your answers in the tabs below.Required 1 Required 2 Required 3Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associatedwith the fleet of trucks.Note: Do not round your intermediate calculations. Round the Variable cost per kilometer to 3 decimal places.Variable costFixed costper kilometerper year

VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…

Answered: 5 Hoi Chong Transport, Limited,…

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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please answer question 1 with details on how to do it. Thank you.
1
Braile Gear Works sells a single gear for a price of $73.00 per unit. The variable costs of the gear are $41.00 per gear and annual fixed costs are $548,800. Required: a. What is the break-even level of annual sales for Braile Gear Works? b. The cost analyst tells you that, based on the price and cost information of the gear and the marketing department's sales projection for next year, the margin of safety percentage is 30 percent. How many units does marketing expect to sell next year? Note: Do not round intermediate calculations. Break-even level Number of units to be sold parts
(The following information applies to the questions displayed below.] Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price Variable costs Fixed costs $ 12.00 per case 5.50 per case 397,800 per year Exercise 3-34 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Assume that the company plans to sell 76,200 units annually. Consider requirements (b), (d). and (d) independently of each other. Required: a. What will be the operating profit? b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these…
3
Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage Contribution of Unit Margin per Unit Lens A Lens B Lens C Sales 24% 44 32 $ 50 42 55 Required: 1. Determine the weighted-average contribution margin per unit. 2. Determine the number of units of each product that Tiago must sell to break even if fixed costs are $189,000. 3. Determine how many units of each product must be sold to generate a profit of $66,000. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Units of Lens A Units of Lens B Units of Lens C Determine how many units of each product must be sold to generate a profit of $66,000. Note: Round your intermediate calculations to nearest whole number. Round your answers up to the next whole number. Round weighted-average contribution margin per unit to 2 decimal places. Units Units Units
Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the total fixed costs are $840,000. A proposal is being evaluated to increase the unit selling price to $390. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of $22 each in the coming year. Total variable costs equal $1,086,800. Total fixed costs equal $8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.)Required:1. What is the contribution margin per unit? What is the contribution margin ratio?2. Calculate the sales revenue needed to break even.3. Calculate the sales revenue needed to achieve a target profit of $245,000.4. What if the average price per unit increased to $23.50? Recalculate:a. Contribution margin per unitb. Contribution margin ratio (rounded to four decimal places)c. Sales revenue needed to break evend. Sales revenue needed to achieve a target profit of $245,000
Can you help me with CVP Drill #14?
Hoi Chong Transport, Limited, operates a fleet of delivery trucks in Singapore. The company has determined that if a truck is driven 162,000 kilometers during a year, the average operating cost is 13.2 cents per kilometer. If a truck is driven only 108,000 kilometers during a year, the average operating cost increases to 16.6 cents per kilometer. Required: 1. Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. 2. Express the variable and fixed costs in the form Y = a + bX. 3. If a truck were driven 135,000 kilometers during a year, what total operating cost would you expect to be incurred? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Variable cost Fixed cost Required 3 Using the high-low method, estimate the variable operating cost per kilometer and the annual fixed operating cost associated with the fleet of trucks. (Do not round your…
Kent Co. manufactures a product that sells for $57.00 and has variable costs of $34.00 per unit. Fixed costs are $253,000. Kent can buy a new production machine that will increase fixed costs by $24,200 per year, but will decrease variable costs by $5.00 per unit. Compute the contribution margin per unit if the machine is purchased.
Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operations

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