ABC Inc. Incurred the following costs for the last 3 months:Production in units:Factory rent:Indirect Manufacturing costs:Selling costs:Commissions:Multiple Choice$120,000Assuming that ABC was to produce and sell 80,000 units next month, how much would the company Incur in selling costs?$90,000$180,00040,000$240,00050,00060,000$ 10,000 $ 10,000$ 10,000$ 50,000 $ 60,000 $ 70,000$ 60,000 $ 75,000 $ 90,000$ 120,000 $ 150,000 $ 180,000

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

Answered: ABC Inc. Incurred the following costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

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
Last month Dexter Company had a $20,520 loss on sales of $144,000. Fixed costs are $72,360 a month. By how much do sales have to increase for Dexter to break even? Multiple Choice O O O O $51,840 $57,000 $72,360 $92,880
ABC Inc. incurred the following costs for the last 3 months: Production in units: 40,000 50,000 60,000 Factory rent: $ 10,000 $ 10,000 $ 10,000 Indirect Manufacturing costs: $ 50,000 $ 60,000 $ 70,000 Selling costs: $ 60,000 $ 75,000 $ 90,000 Commissions: $ 120,000 $ 150,000 $ 180,000 Assuming that ABC was to produce and sell 80,000 units next month, how much would the company incur in selling costs?
These following details were supplied by Eigen Manufacturing Corp. over the previous month: Sales $40,000 Variable costs 14,000 Fixed costs 10,000 Operating income $16,000 What is the anticipated operating income if sales drop to 50% in the upcoming month? A. $6,000 B. $15,000 C. $3,000 D. $16,000
21. Empresas Tu Pan produces and sells 1,000,000 pounds of bread monthly. Its variable costs are $ 0.50, this includes $ 0.10 of commissions to sellers. Other variable administrative costs total $ 0.15. Your fixed costs per unit produced are $ 0.25 per month and $ 50,000 for administrative expenses per month. The annual fixed cost of this company will be:
Finch Company began its operations on March 31 of the current year. Finch has the following projected costs: May $198,000 April $156,000 a. $49,500 b. $252,000 c. $202,500 d. $153,000 Manufacturing costs* Insurance expense** Depreciation expense Property tax expense*** *Of the manufacturing costs, three-fourths is paid for in the month they are incurred; one-fourth is paid in the following month. **Insurance expense is $900 a month; however, the insurance is paid four times yearly in the first month of the quarter (i.e., January, April, July, and October). ***Property tax is paid once a year in November. The cash payments for Finch Company expected in the month of June are 900 1,850 500 900 1,850 June 500 $204,000 900 1,850 500 Previous Next
ABC Company sells a product for $100 per unit. Variable costs are $60 per unit, and fixed costs are $3,000 per month. The company expects to sell $600 units in September using the contribution margin format. In the income statement for September using the Contribution Margin Format, the Contribution Margin is and the Operating Income is_ O $20,000 and $22,000 O $22,000 and $19,000 O $24,000 and $21,000 O $23,000 and $20,000 O $21,000 and $18,000
Pluto Company sold 2,000 units in October at a price of $35 per unit. The variable cost is $20 per unit. The monthly fixed costs are $10,000. Calculate the total contribution margin. What is the operating income earned in October?
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?
Isaac Company has estimated the following costs for this year for 240,000 units: Manufacturing Selling & Administrative Variable $150,000 $65,000 Fixed 350,000 135,000 Total $200,000 $500,000 Calculate the manufacturing cost markup needed to obtain a target profit of $100,000.
Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit Sales $ 608, 000 $ 40 Variable expenses 425, 600 28 Contribution margin 182, 400 $ 12 Fixed expenses 154,800 Net operating income $ 27,600 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3- a. How many units would have to be sold each month to attain a target profit of $ 50, 400? 3-b. Verify your answer by preparing a contribution format income statement at the target sales level. 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. 5. What is the company's CM ratio? If the company can sell more units thereby increasing sales by S 50,000 per month and there is no change in fixed expenses, by how much would you expect monthly net operating income to increase?

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS