ABS engineering decided to build and new factory to produce electrical parts for computer manufacturers. They will rent a small factory for 2.000dhsper month while utilities will cost 500dhs per manth. they had to pay 800Dhs for municipality for water and electricity connection fees. On the otherhand they will rent production equipment at a monthly cost of 4.000dhs. they estimated the material cost per unit will be 20dhs, and the labor cost willbe 15dhs per unit. They need to hire a manager and security for with a salary of 30.000 and 5000dhs per manth each. Advertising and promotion willcost cost them 3,500dhs per month.Required:2- Calculate the total Foxed cost 45000 What is thve fixed cost per unit at maximum productiont45What is the total variable cost at maximum production 350000f they set the selling price for 8ODHS on max production and managed to reduce the total foxed cost by what is the profit increase percentage0.39%9they set the seling price for 80DHS on max production and managed to reduce the total variable cost by 3 what is the profit increase percentage259%

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Answered: ABS engineering decided to build and…

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

A mill producing steel plate has fixed costs of $100,000 per week and variable costs of $0.09 per pound of steel plate produced. If the steel plate sells for $0.77 per pound, how many pounds must be produced each week for the plant to breakeven? Express your answer in pounds to the nearest 1,000 pounds.
The Flashtic Co. sells a special type of flashlights which does not use dry-cell batteries but operates with “sun energy”. The product would incur a total variable cost of P18 per unit to manufacture and sell. The plant has a capacity of 20,000 units per month at P180,000 fixed costs and expenses, excluding its monthly interest charges ofP45,000. This product has a contribution margin of 55%. At present the plant is operating at 80% of its capacity. Management plans to increase its current sales by 20% next year. Question: If the number of units sold exceeded the break-even point by 650 units, how much is the profit or loss?
Olga was planning to set up a business where she would purchase paintings for $1,050 per unit and sell them for $1,800 per unit. She wanted to conduct a break-even analysis and identified the following costs for running her business: $4,470.00 per month for store leasing, $54 per month website hosting fee, $5,150 per month for staff salary, $2,040 per month for advertising costs, and $25 per unit for labour charges to pack the paintings. a. How many paintings would she have to sell per month to break-even? Round up to the next whole number b. If she wants to make a profit of $24,000 in a month, how many paintings would she have to sell? Round up to the next whole number
Mr. Waqar is employed in a furniture manufacturing concern and he is currently working a total of 11 hours per day to produce 10 chairs. He thinks that by adopting a new method he can increase his rate to 12 chairs per day. The total material cost for each chair is approximately Rs. 600; he has to invest Rs. 700 in the necessary supplies (expendables) per day; energy costs are assumed to be only Rs. 550 per day. Viewing this from a total (multifactor) productivity perspective, what is his productivity at present and with the new method?
Assume you have developed and tested a prototype electronic product and are about to start your new business. You have purchase pre-programmed computer chips at RM80 per unit. Other component cost includes: plastic casings at RM20 per unit and assembly hardware at RM5 per unit. Direct labour costs are RM15 per hour and 3 units can be produced per hour. You intend tosell each unit at a 50% mark-up over the total costs of producing each unit. The plan is to produce 500 units per months in October, November and December. Sales are expected to be: 200 units in October, 400 units in November and 800 units in December. a.Calculate the amount of sales revenue expected in each month and for the first quarter of the year. b.Prepare a cost of good sold schedule for each of the three months and for the first quarter of the year. Using your cost of good sold estimates and the sales revenues expected in question (a), calculate the gross earning for October, November and December, as well as for…
In building their plant, the officers of the International Leather Company had the choice between alternatives: One alternative is to build in Metro Manila where the plant would cost P2,000,000. Labor would cost annually P120,000 and annual overhead P40,000. Taxes and insurance would total 5% of the first cost of the plant. The second alternative would be to build in Bulacan a plant costing P2,250,000. Labor would cost P100,000 and overhead would be P55,000. Taxes and insurances would be 3% of the first cost. The cost of raw materials would be the same in either plant. If capital must be recovered within 10 years and money is worth at least 20%, which site should the officers of the company choose? Use any method. Show complete manual solution.
“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $20 per drum, we would be paying $5.45 less than it costs us to manufacture the drums in our own plant. Since we use 80,000 drums a year, that would be an annual cost savings of $436,000.” Antilles Refining’s current cost to manufacture one drum is given below (based on 80,000 drums per year): Direct materials $ 12.00 Direct labor 6.50 Variable overhead 1.50 Fixed overhead ($2.90 general company overhead, $1.80 depreciation, and $0.75 supervision) 5.45 Total cost per drum $ 25.45 A decision about whether to make or buy the drums is especially important at this time because the equipment being used to make the drums is completely worn out and must be replaced. The choices facing the company are: Alternative 1: Rent new equipment and continue to make the drums. The equipment would be…
Garrison Boutique, a small novelty store, just spent $4,000 on a new software program that will help in organizing its inventory. Due to the steep learning curve required to use the new software, Garrison must decide between hiring two part-time college students or one full-time employee. Each college student would work 20 hours per week, and would earn $15 per hour. The full-time employee would work 40 hours per week and would earn $15 per hour plus the equivalent of $2 per hour in benefits. Employees are given two polo shirts to wear as their uniform. The polo-shirts cost Garrison $10 each. What are the relevant costs, relevant revenues, sunk costs, and opportunity costs for Garrison?
The cost to operate a clothes dryer for a year is $80.25. If the rate for electrical energy is 8.8¢/kWh, and the clothes dryer is used for 700 hours in a year, what is the power rating of the clothes dryer? Explain in depth and clearly.
Trident Ltd makes designer gold bracelets. Their annual costs include shop rent of $12,500, salaries for two jewellers of $118,000, design software costs of $10,000, and other overhead costs of $13,000. An average bracelet is priced at $5,500. It costs $2,000 in raw material, $1,250 in labour, and $250 in other expenses. What is the minimum number of bracelets that need to be sold to earn a profit? a.28 b. 44 c. 77 d. 17
Tim Urban, owner/manager of Urban's Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy's Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 × 50 equals the total rooms rented for the year). Tim's cost to clean a room is $13.00. The Duffy's Maid Service quote is $19.00 per room plus a fixed cost of $26,000 for sundry items such as uniforms with the motel's name. Tim's annual fixed cost for space, equipment, and supplies is $61,000. Based on the given information related to costs for each of the options, the crossover point for Tim = room nights (round your response to the nearest whole number).

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