2.Pridya Enterprise is a small manufacturing enterprise that producesornaments for holiday decoration. One of the top sales ornaments is 'RedStar'. Production of each unit of the ornament requires the followingresources:Material C2 units @ RM8 per unitRM3.00 per unit3 hours @ RM11 per hourPackagingSkilled LabourThe yearly annual factory rental is RM52,800. The monthly budgetedsales unit of Red Star is 2,400 units at RM68 per unit.Required to compute:(a)Contribution margin per unit.(b)Break-even point in units and value.(c)Determine the margin of safety in units and value.(d) The management is considering to acquire a new machine to havedifferent varieties of Red Star sizes. The machine will costRM12,000. Determine how many extra units to be sold to obtainthe same profit with current forecasted sales unit.

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Answered: 2. Pridya Enterprise is a small…

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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(a) Kimberley-Clark makes luxury hampers for sale in a chain of high-class department stores. The following financial information is available in Table Q2. Current output and sales are set at 30,000 hampers per year, though the fim has the capacity to produce 50,000 hampers per year. Table 2 COST ELEMENT PRICE (RM) 1. Wholesale price 2. Labor and material costs 3. Bought-in components 4. Overheads 80 15 25 800,000 (i) Identify and calculate the fixed cost. (11) Identify and calculate the variable cost. (111) Calculate the break-even quantity for the firm. (iv) Calculate the level of profit the firm is making.
I would like to get answers for a), b) and c) the question is attached below...
A company produces three components on the same machine. The components are used i the manufacture of a finished product. The budget for next year indicates a requirement for 3,000 units of each component, but only 60,000 hours of machine time will be available. Additional components can be purchased from an external supplier to meet any production shortfall. Component Machine hours per unit A B с 9 5 O $537,000 O $543,000 O $549,000 O $553,000 12 Show Transcribed Text Variable production cost per unit $ per unit 45 70 56 Purchase price from external supplier $ per unit 65 78 80 What is the minimum total variable cost at which the 3,000 units of all three components can be obtained?
Caltex Products plc manufactures electric mini-lawnmowers. Its sales and costs’ budget for November 20X2 is as follows:Sales: 3 000 units × £72/unitCosts:Direct materials (metal): 3 000 units × (1kg per unit × £14/kg) Direct materials (plastic) 3 000 units × (0.5kg per unit × £7/kg)Direct labour: 3 000 units × (0.75 hours per unit × £8/hr) Production overhead £86 500Other overheads £31 000• The company does not absorb production overheads using anoverhead absorption rate. • It may be assumed that all of its overheads are fixed in nature. The company’s actual results for the same month (November) are as follows:Sales: 2 950 units × £73/unit Costs:Direct materials (metal): 2 950 units × (0.9kg per unit × £13.80/kg)Direct materials (plastic): 2 950 units × (£0.5kg per unit × £7.20/unit) Direct labour: 2 950 units × (0.7 hrs per unit × £8.20/hr)Production overhead: £84 250Other overheads: £32 250Net profit: £34 658Required:a.i) Produce a budget statement for Caltex for November ii) Produce…
Anobateh enterprise is trying to figure out what materials they are going to make or buy to their chosen supplier. The chosen supplier offers the following price for the materials. Material 1 is cost Php5, material 2 is cost Php8 and material 3 is cost Php5. The production department set the quantity of Materials 1 and 3 to 15,000 units while Material 2 is 12,400. The total cost of Material 1 is 80,000, Product B is 100,000 and Product C is 90,000. The non-relevant costs for Material 1 is 15,000, Material 2 has 25% non-relevant costs from the total costs and Material 3 is 5,000. Other information: Material 1 Material 2 Material 3 Labor hours / unit 0.15 0.20 0.25 1. How many units of each component should be outsourced and insourced? 2. If only 4,700 labor hours are available, how many units of each component should be produced internally or outsourced? FILL IN THE BLANKS FOR THE FINAL ANSWER Make sure to encode properly with comma (Example 19,469). If the answer is zero, just encode 0…
Paradise Marine Sails manufactures sails for sailboats. The company’s capacity is 29,000 sails per month. They are currently producing 25,000 sails a month. Current production cost can be found in the chart below: Sales Price $200 Variable Cost Manufacturing Cost $100 Administrative Cost $50 Total Fixed Cost Manufacturing $500,000 Administrative $480,000 Should you accept a special order at a price of $170 for 3000 sails? Fixed cost will increase by $9,000 to produce these sails. Give a numerical justification Would your answer be different if the company was currently producing 28,000 sails?
Caltex Products plc manufactures electric mini-lawnmowers. Its sales and costs’ budget for November 20X2 is as follows: Sales: 3 000 units × £72/unit Costs:Direct materials (metal): 3 000 units × (1kg per unit × £14/kg) Direct materials (plastic): 3 000 units × (0.5kg per unit × £7/kg) Direct labour: 3 000 units × (0.75 hours per unit × £8/hr) Production overhead: £86 500 Other overheads: £31 000 The company does not absorb production overheads using an overhead absorption rate. It may be assumed that all of its overheads are fixed in nature.The company’s actual results for the same month (November) are as follows: Sales: 2 950 units × £73/unit Costs:Direct materials (metal): 2 950 units × (0.9kg per unit × £13.80/kg) Direct materials (plastic): 2 950 units × (£0.5kg per unit × £7.20/unit) Direct labour: 2 950 units × (0.7 hrs per unit × £8.20/hr) Production overhead: £84 250 Other overheads: £32 250Net profit: £34 658 Required:Comment on your calculations (given down…
Wheel and Tire Manufacturing currently produces 1,000 tires per month. The following per unit data apply for sales to regular customers: Direct materials Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead Total manufacturing costs Select one: The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires? a. $39,000 b. $78,000 C. 1. $62,000 $20 3 d. they are all wrong 6 10 $39
A company manufactures computer games. The games are in demand all year round and in the next financial year the sales manager plans to sell 12,000 games. The trainee's management accountant has provided the following cost information for 1 unit of computer game. The selling price is £10.00, and the variable cost will consist of direct, materials £1.00 per unit, direct labour cost £5.00 per unit. The fixed cost for the year is expected to be £32,000. Required: You have been asked to provide information that will help the managing director consider the effect on profitability changes in the level of sales activity next year Draw up a marginal statement that calculates the contribution per unit Draw up a marginal cost statement on the basis that 12,000 units will be sold and calculate a. b. the net profit or loss Briefly explain what is meant by breakeven points С. d. Calculate the breakeven units in value and explain what it means to the director Calculate the sales activity to reach a…
Gemerlapan Jewellery Sdn. Bhd. (GJSB) is considering a special order for 20 handerafted gold bracelets to be given to the clients' high achieving staffs during their annual dinner. The special price offered for this order is RM2,499. The normal selling price of a gold bracelet is RM2,999 and its unit product cost is as shown below: : RM 2,100 : RM250 Manufacturing overhead : RM 25 Direct material Direct labour Additional information: Most of the manufacturing overhead is fixed and unaffected by variations in how much jewellery is produced in any given period. However, RM5 of the overhead is variable with respect to the number of bracelets produced. The customer who made this special order would like special filigree applied to the bracelets. This filigree would require additional material costing RM4 per bracelet and would also require acquisition of a special tool costing RM450 that would have no other use once the special order is completed. This order would have no effect on the…
Q5: Clone Computers assembles and packages personal computer systems from brand-name components. Its Home Office PC System is assembled from components costing $1400 per system and sells for $2000. Labour costs for assembly are $100 per system. This product line's share of overhead costs is $10,000 per month. a) How many Home Office Systems must be sold each month to break even on this product line? ________ b) What will be the profit or loss for a month in which 13 Home Office Systems are sold? _________

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