00 %24 Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit. What is the dollar advantage or disadvantage to making the components? Select one: none of these O$5,000 advantage O $5,000 disadvantage $80,000 disadvantage Clear my choice Next page Type here to search dy 112 ins. t9 144 f5 114 4. 23 3. 11 1/4 1/2 7. 4. 2. 2. v]] LEGO

00 %24 Beta Inc. is currently making one of its components. Its annual requirements are 20,000 units. The variable cost per unit is $10 and the fixed cost per unit is $10. Included in this fixed cost is the $75,000 salary of the factory supervisor, which would continue to be paid even if the components were purchased. Creto Inc. has offered to supply Beta with 20,000 units for $16 per unit. What is the dollar advantage or disadvantage to making the components? Select one: none of these O$5,000 advantage O $5,000 disadvantage $80,000 disadvantage Clear my choice Next page Type here to search dy 112 ins. t9 144 f5 114 4. 23 3. 11 1/4 1/2 7. 4. 2. 2. v]] LEGO

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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806Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $200 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $270,000, up to a maximum capacity of 700,000 yards of rope. Forecasted variable costs are $140 per 100 yards of XT rope.RequiredEstimate Product XT’s break-even point in terms of (a) sales units and (b) sales dollars.Check (1a) Break-even sales, 4,500 unitsPrepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.
14. IUPI produces and sells scale dinosaur figures. Total variable costs per unit are $ 5.00. Total fixed costs are $ 100,000. The company wants a net income of $ 90,000. Company taxes its income at 40%. If the company sells 50,000 units at what price should it sell.
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Company XYZ is planning to sell 20,000 units at a price of $5 per unit during the month of December. The company has total fixed costs of $60,000. Assume a planned margin of safety of $14,000, what is the breakeven point in ($) value? Select one: O a. 86,000 O b. 46,000 O c. 26,000 O d. 40,000 O e. None of the given answers
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Eaton Tool Company has fixed costs of $435,600, sells its units for $94, and has variable costs of $50 per unit. a. Compute the break-even point. Break-even point b. Ms. Eaton comes up with a new plan to cut fixed costs to $340,000. However, more labor will now be required, which will increas variable costs per unit to $53. The sales price will remain at $94. What is the new break-even point? Note: Round your answer to the nearest whole number. New break-even point units Profitability will be less Profitability will be more units c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)?
25. Arturito Company was approached by the Jordan Brand to purchase 10,000 pairs of shoes for P550. The company currently operates at 45,000 pairs. The maximum capacity of Arturito is 50,000 pairs. If arturito will accept the order, it will need to stop some of their operations. The shoes normally sell for P600. Costs pertaining to the production are as follows: Manufacturing costs are as follows: Direct material per unit P200 Direct labor per unit 180 Variable overhead per unit 50 Fixed overhead per unit 30 Period costs are as follows: Variable selling costs P20 per unit Fixed administrative costs 450,000 If the company will accept the order: It will not incur any selling costs. Variable overhead of P12 per unit will not be incurred. Exportation costs of P150,000 will be incurred. If Arturito will accept the special order, what is the…
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91. Subject :- Accounting