The followings are the budget for next financial year (1 January 2023 - 31 December 2023),indicating the average selling price and variable costs of each product category. The commonfixed manufacturing overhead and the fixed non-manufacturing overhead costs are estimatedto be $1,250,000 and $2,778,320 respectively.Table 1: Budget Jan - Dec 2023Sales Quantity (in units)In $Unit selling priceUnit production costUnit selling & admin variable costs(5% of selling price)In $RevenueVariable Production CostsSelling & Admin Variable CostsModel 18,40060025030Folding BikeModel 27,50040018020Model 33,50048020024ElectricBike8002,000850100Total20,2005,040,000 3,000,000 1,680,000 1,600,000 11,320,000(2,100,000)| (1,350,000)| (700,000)| (680,000)| (4,830,000)(252,000) (150,000) (84,000) (80,000) (566,000)Q1. Based on the above budgeted information, calculate the expected breakeven units for theModel 2 folding bikes.

BREAKEVEN POINT (IN UNITS) = Fixed cost÷ contribution per unit Where contribution per unit= Selling…

Answered: Based on the above budgeted…

Business

Accounting

Based on the above budgeted information, calculate the expected breakeven units for the Model 2 folding bikes.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

am. 164.
Ring Company makes two models of phones - Blue and Yellow. Blue is a basic model and Yellow has more advanced features. Data on the two phones is as follows: Blue Yellow Expected production 50,000 phones 150,000 phones Direct materials and Direct labour costs $25 $40 Ring Company's accountant prepares the following budget that she plans to use to prepare an activity based analysis the costs of Blue and Yellow: \table[[, Blue, Yellow, Budgeted Cost],[,,,], [ Equipment setup, 100 setups, 60 setups,$88,000 ง Required: 1. "Calculate the manufacturing overhead allocation rate for each activity using ABC 2. Calculate the cost of the Blue Phone." 3. If the company wants a markup on cost of 75 percent calculate the selling price of the Blue Phone
vega Inc dealing with soft toys and it has provided the following details where it needs to calculate Efficiency and Capacity ratio of the unit: Budgeted production = 80 units Actual production= 60 units Standard time per unit=8 hours Actual hours worked= 500 hours.
Best Windows plans to sell two different brands of windows-Chad and Musk-and budgets th (Click the icon to view the budgets.) Calculate the breakeven point for Best Windows in terms of (a) the number of units sold and (b) is a ratio of Chad Windows Musk Windows Total 4 1 unit(s) of Musk Windows. Next, calculate the contribution margin of the bundle. Number of Units of Chad Windows and Musk Windows in Each Bundle : 1 That is, we think of Best Windows selling a bundle of Chad Windows Must Windows + Total number of units to break even Contribution Margin per unit for Chad Windows and Musk Windows 200 + Calculate the breakeven point in terms of units. 200 Contribution Margin of the Bundle 800 Determine the formula used to calculate the breakeven point of the bundle. Then, enter the am Fixed costs 165,000 Contribution margin per bundle 1,000 $ 200 1,000 4 = Data table Expected sales Revenues, $650 and $400 per unit Variable costs, $450 and $200 per unit Contribution margin, $200 and $200…
For each situation, select which type of budget you must prepare. Situation You have to assess the likely costs needed to participate in a trade show. A big purchase is required -a new demonstration booth. It will take a lot of time to plan for a trade show, and this is not your only responsibility. You need a plan to ensure that you complete the full range of duties. You are planning an appearance for your company at a trade show. You must forecast the revenue your company may earn as a result of your participation. Financial Operating Nonmonetary
Scholar Suppliers manufactures backpacks for students. The backpacks come in two sizes: Small, and Large. Scholar Suppliers anticipates the following sales volumes and prices for the coming period: Size Sales Volume Selling Price Small 3,000 backpacks $25 each Large 6,000 backpacks $75 each What is the budgeted level of revenue for the coming period?
The Current Designs staff has prepared the annual manufacturing budget for the rotomolded line based on an estimated annual production of 4,640 kayaks during 2022. Each kayak will require 56 pounds of polyethylene powder and a finishing kit (rope, seat, hardware, etc.). The polyethylene powder used in these kayaks costs $1.20 per pound, and the finishing kits cost $210 each. Each kayak will use two kinds of labor-2 hours of type I labor from people who run the oven and trim the plastic, and 3 hours of work from type II workers who attach the hatches and seat and other hardware. The type I employees are paid $17 per hour, and the type II are paid $14 per hour. Manufacturing overhead is budgeted at $414,840 for 2022, broken down as follows. Variable costs Indirect materials $46,400 Manufacturing supplies 64,960 Maintenance and utilities 102,080 213,440 Fixed costs Supervision 78,000 Insurance 13,200 Depreciation 110,200 201,400 Total $414,840 During the first quarter, ended March 31,…
provide correct answer for both
4. What is the dollar value of budgeted soap purchases? Round calculations to a level that makes sense for situation
Perez Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Perez planned to make and sell 25,000 copies of the book. Number of units Variable manufacturing costs Required: a.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 24,000 and 26,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 26,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Fixed costs $36.50 8.60 4.40 Master Budget 25,000 7.10 $ 131,000 50,000 Flexible Budgets 24,000 < Prev 4 of 4 26,000 Volume Variances…
Vaughn Chemicals has developed a new window cleaner that requires two ingredients, AM972 and CA38. Based on forecasted sales, Vaughn has developed the following budgeted production for the coming year. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 1st QuarterNext Year Forecasted production (gallons) 5,000 7,000 9,000 12,500 6,000 Each gallon of window cleaner requires 100 ounces of AM972 and 28 ounces of CA38. An ounce of AM972 costs Vaughn $0.15. An ounce of CA38 costs the company $0.25. Vaughn's inventory policy requires ending inventory equal to 20% of the next quarter's production needs. At the beginning of the year, Vaughn expects to have 80,000 ounces of AM972 and 30,000 ounces of CA38 on hand.Prepare Vaughn's AM972 purchases budget for the coming year. (Enter price per ounce to 2 decimal places, e.g. 0.35.) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Annual select an opening purchase…
Cold X, Inc. uses this information when preparing their flexible budget: direct materials of $2 per unit, direct labor of $3 per unit, and manufacturing overhead of $1 per unit. Fixed costs are $35,000. What would be the budgeted amounts for 20,000 and 25,000 units? PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). Cold X, Inc. Flexible Budget 20,000 Units 25,000 Units Production Costs Fixed Overhead Total Costs