Brant Consulting designs costing and transfer pricing system for its clients. Here is a summary of volume, revenue, and cost expectations for the upcoming year. Item Revenue Variable cost Transfer Pricing Projects Costing Projects Per Per Unit 75 Jobs Total Unit 50 Jobs $10,000 $500,000 $15,000 $1,125,000 $1,625,000 4,500 225,000 11,500 862,500 1,087,500 $537,500 473,000 $64,500 Contribution margin $5,500 $275,000 $3,500 $262,500 How Fixed cost Profit Assume a constant sales mix. (a) How many Costing systems must Brant Consulting sell to breakeven? How many Transfer Pricing systems must Brant Consulting sell to breakeven? (b) How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? ems must Brant Consulting sell to achieve a target profit of $86,000? | Costing sys Firm X X x Round up the total number of systems before determining the allocation between Costing and Transfer Pricing.

Brant Consulting designs costing and transfer pricing system for its clients. Here is a summary of volume, revenue, and cost expectations for the upcoming year. Item Revenue Variable cost Transfer Pricing Projects Costing Projects Per Per Unit 75 Jobs Total Unit 50 Jobs $10,000 $500,000 $15,000 $1,125,000 $1,625,000 4,500 225,000 11,500 862,500 1,087,500 $537,500 473,000 $64,500 Contribution margin $5,500 $275,000 $3,500 $262,500 How Fixed cost Profit Assume a constant sales mix. (a) How many Costing systems must Brant Consulting sell to breakeven? How many Transfer Pricing systems must Brant Consulting sell to breakeven? (b) How many Costing systems must Brant Consulting sell to achieve a target profit of $86,000? ems must Brant Consulting sell to achieve a target profit of $86,000? | Costing sys Firm X X x Round up the total number of systems before determining the allocation between Costing and Transfer Pricing.

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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