A company has a total cost of $80.00 per unit at a volume of 75,000 units. The variable cost per unit is $35.00. What would the price be if the company expected a volume of 90,000 units and used a markup of 40%? A. $92.33 B. $112.00 C. $101.50 D. $98.00

A company has a total cost of $80.00 per unit at a volume of 75,000 units. The variable cost per unit is $35.00. What would the price be if the company expected a volume of 90,000 units and used a markup of 40%? A. $92.33 B. $112.00 C. $101.50 D. $98.00

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...

See similar textbooks

Related questions

Q: 4 POINT

A: Explanation of Average Accounts Receivable:Average accounts receivable represents the mean value of…

Q: I am looking for a reliable way to solve this financial accounting problem using accurate…

A: Step 1: Definition of Gross Profit and Gross Profit RatioGross Profit is the difference between net…

Q: Bradford Enterprises sells two products, blue pens and green notebooks. Bradford predicts that it…

A: Concept of Contribution Margin per UnitThe contribution margin per unit is the amount that remains…

Q: Please provide the correct solution to this financial accounting question using valid principles.

A: Step 1: Definition of Financing ActivitiesFinancing activities involve cash flows related to…

Q: Financial Accounting

A: Step 1: Definition of Accrual AccountingAccrual accounting is a method that records revenues when…

Q: I. need help by real expert and true answer.

A: Halsey Plan Formula:Total Wages = (Time Taken × Rate) + 50% of (Time Saved × Rate)Given:Time Taken =…

Q: A new production equipment with a purchase price of $125,000, freight costs of $12,500, setup costs…

A: Explanation of Cost Basis:Cost basis refers to the total amount that a company records as the value…

Q: I need assistance with this financial accounting question using appropriate principles.

A: Step 1: Definition of Profitability IndexThe Profitability Index (PI) is a capital budgeting tool…

Q: Please provide the accurate answer to this general accounting problem using valid techniques.

A: Step 1: Definition of Total Cost Total cost includes all costs associated with producing a product.…

Q: Can you help me solve this financial accounting question using the correct financial procedures?

A: Step 1: Definition of Rate of ReturnThe Rate of Return measures the gain or loss on an investment…

Q: Can you explain the process for solving this financial accounting problem using valid standards ?

A: To calculate the implied variable cost per scan for Scanner B, we use the basic profit…

Q: An analysis of Sunrise Inc.'s accounts receivable at December 31, 2023, revealed the following: • •…

A: Step 1: Definition of Net Realizable Value of ReceivablesThe net realizable value (NRV) of…

Q: Kraft's contribution margin is 35%. The company is contemplating an advertising campaign that will…

A: Explanation of Contribution Margin:Contribution margin is the amount remaining from sales revenue…

Q: I don't need ai answer general accounting question

A: Step 1: Definition of Contribution Margin Ratio and Break-Even SalesThe contribution margin ratio is…

Q: Pro-tech Software acquired all of the outstanding stock of Reliable Software for $17 million. The…

A: To calculate goodwill, use the formula:Goodwill = Purchase Price - Fair Value of Net Assets…

Q: None

A: To compute the current income tax expense, we only consider permanent differences to adjust the…

Q: I need help finding the correct solution to this financial accounting problem with valid methods.

A: To determine the cash withdrawals, we use the equation for changes in Owner's Equity: Ending Owner's…

Q: I need help solving this general accounting question with the proper methodology.

A: Step 1: Definition of Break-even Point (in units)The break-even point in units refers to the exact…

Q: Ronan Mart recorded the following: cash sales $47,500, credit sales $69,000, sales return $5,200,…

A: Step 1: Definitions Concept of Gross Sales:Gross sales represent the total unadjusted revenue from…

Q: Hello tutor please given step by step explanation the financial accounting question with correct…

A: Step 1: Definition of ROE (Return on Equity)Return on Equity (ROE) is a key financial ratio that…

Q: Atlas Interiors sold office equipment costing $15,800 with accumulated depreciation of$12,400 for…

A: To calculate the gain or loss on the sale of the office equipment, follow these steps: 1. Determine…

Q: I need help with this problem and accounting question

A: To calculate the Cost of Goods Sold (COGS), use the formula: COGS = Beginning Inventory + Net…

Q: Assess the implications of the globalization of business operations on the harmonization of…

A: Explanation of Globalization of Business Operations: The process by which businesses expand their…

Q: Could you explain the steps for solving this financial accounting question accurately?

A: Formula:Asset Turnover Ratio = Net Sales ÷ Average Total AssetsStep 1: Calculate Net SalesGross…

Q: Subject ? Financial accounting

A: Step 1: Define Debtor's Turnover RatioThe Debtor's Turnover Ratio (also known as Accounts Receivable…

Q: What is marine enterprises after tax net cash inflow?

A: Step 1: Calculate Gross ProfitSales = $120,000COGS = $50,000Gross Profit = $120,000 - $50,000 =…

Q: Please provide the correct answer to this general accounting problem using accurate calculations.

A: Step 1: Definition of Gross ProfitGross profit is the difference between a company's revenue and the…

Q: I need assistance with this financial accounting question using appropriate principles.

A: Step 1: Definition of Capital Raised from Bond IssuanceCapital raised from a bond issuance refers to…

Q: Space Exploration Technology Corporation (Space X), is an aerospace manufacturer that sells stock…

A: 1. Should the one-time order be filled?Calculation:Total Variable Cost: 8 units × 1.6million=12.8…

Q: The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long- term debt of $6.1 million, and…

A: To find the operating cash flow (OCF), we can use the following formula derived from the cash flow…

Q: Yao Ming Traders has the following transaction data: beginning inventory $9,200, purchases $70,000,…

A: Definition of Cost of Goods Sold (COGS):Cost of Goods Sold represents the direct costs incurred to…

Q: Accounting question

A: Step 1: Define Direct Materials VariancesDirect materials variances measure the differences between…

Q: What amount should be considered product costs for external reporting purposes if the company uses…

A: Step 1: DefinitionsConcept of Absorption Costing:Absorption costing is a costing method where all…

Q: I need guidance on solving this financial accounting problem with appropriate financial standards.

A: Step 1: Define Addition to Retained EarningsAddition to retained earnings refers to the portion of…

Q: General Accounting Question

A: Step 1: Definition of Labor Rate VarianceLabor rate variance measures the difference between the…

Q: Can you solve this general accounting problem using appropriate accounting principles?

A: Step 1: Definition of Return on Assets (ROA) & Return on Equity (ROE)Return on Assets (ROA) is a…

Q: Please explain the solution to this financial accounting problem with accurate explanations.

A: Step 1: Definition of Liabilities Change Based on Accounting EquationLiabilities change based on the…

Q: Please provide the answer to this general accounting question using the right approach.

A: Step 1: Definition of Absorption Costing Absorption costing is a method where all manufacturing…

Q: Please provide the solution to this financial accounting question with accurate financial…

A: Step 1: Definition of Retained EarningsRetained Earnings refer to the cumulative amount of net…

Q: Can you explain this general accounting question using accurate calculation methods?

A: Step 1: Definition of Direct Labor VariancesDirect labor variances are used to measure the…

Q: hello expert i need best answer for this question.

A: Part 3: Materials Quantity Variance (MQV) Calculation Given Data:Standard Cost per Pound (SP) =…

Q: Can you provide a detailed solution to this financial accounting problem using proper principles?

A: Step 1: Definition of Return on Investment (ROI) using DuPont Formula Return on Investment (ROI)…

Q: How much is total cost of production?

A: Explanation of Production Planning :Production planning is the process of determining how many units…

Q: I need help with this financial accounting question using standard accounting techniques.

A: Step 1: Definition of Free Cash FlowFree Cash Flow (FCF) represents the amount of cash a company…

Q: What is the net income? Please given step by step explanation The general accounting question do…

A: Step 1: Define Return on Assets (ROA)Return on Assets (ROA) measures how efficiently a company…

Q: I need assistance with this financial accounting problem using valid financial procedures.

A: Step 1: Definition of Net IncomeNet income is the amount of profit a company earns after subtracting…

Q: Certer manufacturing uses standard costing and has established the following direct material and…

A: Concept of Standard CostStandard cost is the predetermined cost of manufacturing a product or…

Q: I am searching for the correct answer to this financial accounting problem with proper accounting…

A: Step 1: Definition of Cash Conversion Cycle (CCC)The Cash Conversion Cycle (CCC) is a financial…

Q: How much is direct labor cost?

A: Explanation of Total Manufacturing Costs:Total manufacturing costs represent the sum of all…

Q: Please explain the solution to this general accounting problem with accurate explanations.

A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) is a financial metric that…

Question

Solve this Accounting problem

A company has a total cost of $80.00 per
unit at a volume of 75,000 units. The
variable cost per unit is $35.00. What
would the price be if the company
expected a volume of 90,000 units and
used a markup of 40%?
A. $92.33 B. $112.00 C. $101.50 D. $98.00

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
A company sells its products for $80 per unit and has per-unit variable costs of $30. What is the contribution margin per unit? A. $30 B. $50 C. $80 D. $110
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
A companys product sells for $150 and has variable costs of $60 associated with the product. What is its contribution margin per unit? A. $40 B. $60 C. $90 D. $150
Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per unit, and fixed costs are 8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
want the correct answer pls..
A company has a total cost of $50.00 per unit at a volume of 100,000 units. The variable cost per unit is $20.00. What would the price be if the company expected a volume of 120,000 units and used a markup of 50%? A. $75.00 B. $62.50 C. There is not enough information in the problem to answer. D. $67.50
I need help with accounting question