Solve this problem areOcean City Kite Company sells kitesfor $11.00 per kite. In FY 2019, totalfixed costs are expected to be$215,000 and variable costsestimated at $5.00 a unit. Ocean CityKite Company wants to have an FY2019 operating income of $65,000. Usethis information to determine thenumber of units of kites that OceanCity Kite Company must sell in FY2019 to meet this goal. (Round theanswer to a whole number.)

Step 1: Definition of Variable CostWhile operating a business, the cost that changes continuously as…

Answered: are Ocean City Kite Company sells kites…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...

See similar textbooks

Similar questions

General Accounting question please give answer
Provide correct answer for general accounting question
During 2019, it cost Sheridan Company $20 per unit to produce part T5. During 2020, it has increased to $25 per unit. In 2020, Southside Company has offered to provide Part T5 for $18 per unit to Sheridan. As it pertains to the make-or-buy decision, which statement is true? O Differential costs are $7 per unit. O Incremental revenues are $5 per unit. O Incremental costs are $2 per unit. O Net relevant costs are $2 per unit.
In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating Expense
During 2021, it cost Bramble Inc. $13 per unit to produce Part T5. During 2022, the cost has increased to $14 per unit. In 2022, Cullumber Company has offered to sell the Part T5 for $10 per unit to Bramble. With regard to the make-or-buy decision, which statement is true? Incremental costs are $3 per unit. Net relevant costs are $3 per unit. Incremental revenues are $1 per unit. Differential costs are $4 per unit.
In 2019, Deepika Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2019, the company expects annual property taxes to decrease by $15,000. Required: a. Calculate operating income and the breakeven point for 2019. b. Calculate the breakeven point for 2019.
Solve this general accounting question
First, Determine the selling price to retailers in 2020:
The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.
he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?
The cost to produce Part A was $5 per unit in 2021. During 2022, it has increased to $9 per unit. In 2022, Carla VistaCompany has offered to supply Part A for $6 per unit. For the make-or-buy decision, net relevant costs are $4 per unit. differential costs are $3 per unit. incremental costs are $4 per unit. incremental revenues are $1 per unit.
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,300 each) for 2019. The workstations’ manufacturing costs include the following. Direct materials $ 750 per unit Direct labor $ 400 per unit Variable overhead $ 60 per unit Fixed overhead $ 24,000 per year The selling expenses related to these workstations follow. Variable selling expenses $ 45 per unit Fixed selling expenses $ 3,500 per year Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.Required:1. Complete the following income statements using absorption costing.2. Complete the following income statements using variable costing.

SEE MORE QUESTIONS

Recommended textbooks for you

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

Principles of Accounting Volume 2

Accounting

ISBN:

9781947172609

Author:

OpenStax

Publisher:

OpenStax College

SEE MORE TEXTBOOKS