Assume that a company uses the absorption costing approach to cost-plus pricing. It is considering the introduction of a newproduct. To determine a selling price, the company has gathered the following information:Number of units to be produced and sold each yearUnit product costEstimated annual selling and administrative expensesEstimated investment required by the companyDesired return on investment (ROI)15,000$ 33.00$ 63,900$780,00012%The selling price that the company would establish using a markup percentage on absorption cost is closest to:

Markup Percentage will be computed using the following formulae :Markup percentage = Desired Profit…

Answered: Assume that a company uses the…

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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Information concerning a product produced by Ender Company appears here: Sales price per unit $ 174 Variable cost per unit $ 76 Total annual fixed manufacturing and operating costs $ 656,600 Required Determine the following: Contribution margin per unit. Number of units that Ender must sell to break even. Sales level in units that Ender must reach to earn a profit of $245,000. Determine the margin of safety in units, sales dollars, and as a percentage.
Curiumber Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range or output as follows. Output in Units 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Rent Cost 11.000 $5,290 5,290 8,464 8,464 8,464 8,464. 8,464 8.464 10.580 10,000 10,580 10.580 Direct Materials $4,200 7,200 7,200 9,600. 12,000 14,400 16.800 19,200 30.999 37,030 46.552
Please help me figure a-e
I ONLY NEED #4, 5, & 6 Contribution Margin, Break-Even Sales, Cost-Volume-Profit Chart, Margin of Safety, and Operating Leverage Belmain Co. expects to maintain the same inventories at the end of 20Y7 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for their departments during the year. A summary report of these estimates is as follows: Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials — $26 Direct labor — 17 Factory overhead $265,400 13 Selling expenses: Sales salaries and commissions 55,200 6 Advertising 18,700 — Travel 4,100 —…
Assume you are the department B manager for Marleys manufacturing. Marley’s operates under a cost-based transfer structure. Assume you receive the majority of your raw materials from department A, which sells only to department B (they have no outside sales) Assume the market price for the items your department purchase is 15% below what you are being charged by department A of Marley’s manufacturing. Determine the operating income for department B, assuming department A “sold” department B 1,000 unit during the month and department A reduced the selling price to the market price. Round your percentage answer to one decimal.
Answer complete question with all working,,,,,,answer in text form please (without image)
Basic Motor Corporation uses target costing. Assume that Basic marketing personnel estimate that the competitive selling price for the QuikCar in the upcoming model year will need to be $23,400. Assume further that the QuikCar's total unit cost for the upcoming model year is estimated to be $19,900 and that Basic requires a 20% profit margin on selling price (which is equivalent to a 25% markup on total cost). a. What price will Basic establish for the QuikCar for the upcoming model year?$fill in the blank 1 b. Since the estimated manufacturing cost the target cost, Basic its total costs to maintain competitive pricing within its profit objectives.
Calculate per-unit costs and compare to last year. Are the reduced unit costs for Product A due to scale or scope? Product A last year Product B last year Units Production Cost Marketing Cost 100 50 200 80 2.5 4 Units Production Cost Marketing Cost Product A coming year 150 150 40 Product B coming year 200 80 2 3.2 a. The reduced per unit costs for product A are due to scale b. The reduced per unit costs for product A are due to scope c. We cannot be certain whether the reduced per unit costs for product A are due to scale or scope. d. The reduced per unit costs for product A are due to both scale and scope

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