background info is provided in the image attached. Solve the following: c) Assuming sales of 5,000 units, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and clearly showing contribution and net income. d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and sales dollars.
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The background info is provided in the image attached. Solve the following:
c) Assuming sales of 5,000 units, prepare a contribution margin income statement for the year ended December 31, 2020, detailing the components of total variable costs and total fixed costs, and clearly showing contribution and net income.
d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units and
sales dollars.
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- Gent Designs requires three units of part A for every unit of Al that it produces. Currently, part A is made by Gent, with these per-unit costs in a month when 4.000 units were produced: Variable manufacturing overhead is applied at $1.00 per unit. The other $0.30 of overhead consists of allocated fixed costs. Gent will need 6,000 units of part A for the next years production. Cory Corporation has offered to supply 6,000 units of part A at a price of $7.00 per unit. It Gent accepts the offer, all of the variable costs and $1,200 of the fixed costs will be avoided. Should Gent Designs accept the offer from Cory Corporation?Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) Production Costs: 4,000 6,000 Direct Materials. $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries . Office Salaries 50,000 65,000 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20.000 Total $365.000 $477.500Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production OCosts: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials... 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365.000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and…
- Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15,000 20,000 Total $365,000 $477,500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: i) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000 Production Costs: Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials 25,000 37,500 Indirect Labour ............. 40,000 50,000 Depreciation . 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries ....... 30,000 30,000 .. . Advertising 45,000 45,000 Other 15,000 20,000 Total $365,000 $477.500 Required: d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safetv in units and sales dollars. e) Recompute the break-even point in units, assuming that variable costs increased by 20% and fixed costs are reduced by $50,625. How will this impact the…
- Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit Production (# of boxes) 4,000 6,000Production Costs:Direct Materials …………$60,000 $90,000Direct Labour …................. $80,000 $120,000Overhead:Indirect Materials…………... $25,000 $ 37,500Indirect Labour ……………. $40,000 $50,000Depreciation ………………. $20,000 $20,000Selling & Administrative Expenses:Sales Salaries ……………………$50,000 $65,000Office Salaries …………………$30,000 $30,000Advertising …………………… $ 45,000 $45,000Other ………………………………$415,000 $20,000Total…Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round. The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lower limits of activity for the year ended December 31, 2020. Lower Limit Upper Limit 6,000 Production (# af boxes) Production Costs: 4,000 Direct Materials $60,000 $90,000 Direct Labour 80,000 120,000 Overhead: Indirect Materials.. 25,000 37,500 Indirect Labour 40,000 50,000 Depreciation 20,000 20,000 Selling & Administrative Expenses: Sales Salaries 50,000 65,000 Office Salaries 30,000 30,000 Advertising 45,000 45,000 Other 15.000 20,000 Total $365.000 S477.500 Required: a) Classify each cost element as either fixed, variable, or mixed b) Calculate: ) the variable production cost per unit and the total fixed production overhead. ii) The total variable cost per unit and the total fixed costs Hint: Use the high-low method to separate mixed costs into their fixed and variable…Need assistance with all workings please. Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all year round.The product sells at $100 per box. The following cost data has been prepared for its estimated upper and lowerlimits of activity for the year ended December 31, 2020. Lower Limit Upper LimitProduction (# of boxes) 4,000 6,000Production Costs:Direct Materials ........................ $60,000 $90,000Direct Labour ............................ 80,000 120,000Overhead:Indirect Materials............... 25,000 37,500Indirect Labour ................ 40,000 50,000Depreciation ................... 20,000 20,000 Selling &…
- Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 114,000 to 182,400 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 114,000 144,000 182,400 Total costs: Total variable costs . . . . . . . . . $49,020 (d) (j) Total fixed costs . . . . . . . . . . . . 54,720 (e) (k) Total costs . . . . . . . . . . . . . . . . . $103,740 (f) (l) Cost per unit: Variable cost per unit . . . . . . . (a) (g) (m) Fixed cost per unit . . . . . . . . . . (b) (h) (n) Total cost per unit . . . . . . . . . . (c) (i) (o) Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. Cost Report Components produced 114,000 144,000 182,400 Total costs: Total variable costs $49,020 (d) $fill in the blank 1 (j) $fill in the…Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 45,000 to 75,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 45,000 60,000 75,000 Total costs: Total variable costs . . . . . . . . . $1,350,000 (d) (j) Total fixed costs . . . . . . . . . . . . 810,000 (e) (k) Total costs . . . . . . . . . . . . . . . . . $2,160,000 (f) (l) Cost per unit: Variable cost per unit . . . . . . . (a) (g) (m) Fixed cost per unit . . . . . . . . . . (b) (h) (n) Total cost per unit . . . . . . . . . . (c) (i) (o) Complete the cost schedule. When computing the cost per unit, round to two decimal places. Cost Report Components produced 45,000 60,000 75,000 Total costs: Total variable costs $1,350,000 (d) $ (j) $ Total fixed costs 810,000 (e) (k) Total costs $2,160,000…Vogel Inc. manufactures memory chips for electronic toys within a relevant range of 128,000 to 200,000 memory chips per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced 128,000 160,000 200,000 Total costs: Total variable costs . . . . . . . . . $57,600 (d) (j) Total fixed costs . . . . . . . . . . . . 64,000 (e) (k) Total costs . . . . . . . . . . . . . . . . . $121,600 (f) (l) Cost per unit: Variable cost per unit . . . . . . . (a) (g) (m) Fixed cost per unit . . . . . . . . . . (b) (h) (n) Total cost per unit . . . . . . . . . . (c) (i) (o) Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. Cost Report Components produced 128,000 160,000 200,000 Total costs: Total variable costs $57,600 (d) $fill in the blank 1 (j) $fill in the…