9-25 Normal capacity utilization. The estimation of the sales for a company during the next five years isas follows:■Year 1:8,000 units■Year 2: 9,000 units■ Year 3: 10,000 units■ Year 4: 9,000 units■ Year 5: 9,000 unitsThe capacity of this company is 14,000 units per year.1. What is the normal capacity utilization of this company?2. What is the normal capacity utilization if the capacity is 8,000 units per year?

Capacity Utilization is the measure to ascertain the productivity of the entity i.e, how much…

Answered: 9-25 Normal capacity utilization. The…

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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The following annual information is for Dexter Corporation: Product A Revenue per unit: $20.00 Variable cost per unit: $15.00 Total fixed costs: $100,000 How many units does the company have to sell to achieve an after tax income of $75,000 if the income tax rate is 25%?
Data for XYZ Co.• Expected sales volume: 2,250 units in the first quarter,with 250-unit increases in each succeeding quarter.• Sales price: $50 per unit. What was the total sales for each quarter?
ABC manufacture 5 different product. For the last quarter of the year, demand increases on each product. The company maximum number of hour operation for the last quarter is 350,000 hours. Determine the best combination of units of output to produce that will yield the greatest profit for the last quarter of the year of ABC company. (Round of to the nearest whole number) PRODUCT А В C D E DEMAND 25,000UNITS 15,000UNITS 30,000UNITS 5,000UNITS 10,00OUNITS SELLING 10.00 20.00 30.00 40.00 50.00 PRICE MAN. COST 5.00 5.00 15.00 30.00 25.00 HR. NEED 5HOURS 5HOURS 3HOURS 2HOURS 10HOURS
Accounting First year sales revenue for coffee sleeves is estimated to be $18,000,000 in the first year. The average sales price is $18 per unit with the variable expense per unit at $13. This results in a contribution margin of $5 per unit. The sales volume in the first year is estimated to be 1,000,000 units. Estimated fixed costs for the first year are $1,000,000. Using the contribution margin method, estimated losses in the first year will be $3,000,000. Question: Produce the Sales Forecast :Ex: lst year by month; 2nd and 3rd years by quarter $ Sales forecasted and timing – include charts showing the following: Remember that some products have sales cycles – and whether you are planning for any growth in the market or increased promotionspromotions.
Fixed assets= 5,00,000 Current assets (other than debtors) 3,00,000 Debtors =2,00,000 Annual fixed cost of the division= 8,00,000 Variable cost per unit of product 10 Budgeted volume of production per year (units)= 4,00,000 Desired return on investment 28% You are required to determine the transfer price for the division A. Falcon co fixes the inter-divisional transfer prices for its products on the basis of cost plus and estimated return on investment in its division. The details given above was related toDivision A for the year 2019-20.
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 sales
Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 18.00 $ 15.00 Sales (8,800 units) Variable expenses Contribution margin Fixed expenses Net operating income Required: (Consider each case independently): Total $ 290,400 158,400 132,000 54,100 $ 77,900 1. What would be the revised net operating income per month if the sales volume increases by 40 units? 2. What would be the revised net operating income per month if the sales volume decreases by 40 units? 3. What would be the revised net operating income per month if the sales volume is 7,800 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
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Whirly Corporation's contribution format income statement for the most recent month is shown below: Per Unit $ 33.00 19.00 $ 14.00 Sales (8,500 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 280,500 161,500 119,000 54,700 $ 64,300 Required: (Consider each case independently): 1. What would be the revised net operating income per month if the sales volume increases by 70 units? 2. What would be the revised net operating income per month if the sales volume decreases by 70 units? 3. What would be the revised net operating income per month if the sales volume is 7,500 units? 1. Revised net operating income 2. Revised net operating income 3. Revised net operating income
Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,

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