Bright wood! Seating sells reclining chairs for $55.00 per unit. Thevariable cost is 322 per unit. Each reclining chair requires 5 directlabor hours and 3 machine hours to produce.ibution margin pemachine honWrightwood Manufacturing has a break-even point of 1,500 units. Thesales price per unit is $18. and the variable cost per us $13. If thecompany sells 3,500 units, what will its net income be?Crestwood Industries provides the following budget datafor its Processing Department for the year 2022:⚫ Manufacturing Overhead Costs=250⚫ Direct Labor Costs $1,234,500Determine the manufacturing overhead application rateunder the base of Direct Labor Costs.Modesto Accessories manufactures two types of wallets leather andcanvas. The company allocates manufacturing overhead using a singleplant wide rate with direct labor cost as the allocation base.$48Estimated Overhead Costs = 30,600Direct Labor Cost per Leather WalletDirect Labor Cost per Canvas Wallet = $52Number of Leather Wallets = 600Number of Canvas Wallets00Compute the Predetermined Overhead Allocation Rate.

Answered: Bright wood! Seating sells reclining…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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Similar questions

Delta Co. sells a product for $150 per unit. The variable cost per unit is $90 and fixed costs are $15,250. Delta Co.s tax rate is 36% and the company wants to earn $44,000 after taxes. What would be Deltas desired pre-tax income? What would be break-even point in units to reach the income goal of $44,000 after taxes? What would be break-even point in sales dollars to reach the income goal of $44000 after taxes? Create a contribution margin income statement to show that the break-even point calculated in B, generates the desired after-tax income.
Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22 each in the coming year. Total variable costs equal 1,086,800. Total fixed costs equal 8,000,000. (Round all ratios to four significant digits, and round all dollar amounts to the nearest dollar.) Required: 1. What is the contribution margin per unit? What is the contribution margin ratio? 2. Calculate the sales revenue needed to break even. 3. Calculate the sales revenue needed to achieve a target profit of 245,000. 4. What if the average price per unit increased to 23.50? Recalculate: a. Contribution margin per unit b. Contribution margin ratio (rounded to four decimal places) c. Sales revenue needed to break even d. Sales revenue needed to achieve a target profit of 245,000
Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?
Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The companys monthly fixed expenses are $36,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of November when they will sell 130 units. How many units will Marlin need to sell in order to realize a target profit of $48,000? What dollar sales will Marlin need to generate in order to realize a target profit of $48.000? Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $16,200. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the selling price increased to $62 per unit fill in the blank 2 units
Snow Company pays a production company to produce phones for them at a cost of $200 each. Variable costs total $120 per phone, and fixed expenses are $1,998,000. Snow Company currently sells the phones for $500. 1. Snow Company found a new company to produce phones at a lower cost of $185. Calculate breakeven point in units. 2. Predicted demand for its phones is 12,000 units. What is the lowest price that can be charged in order to earn a $198,000 profit? 3. Snow Company can sell 14,000 units, but has to increase advertising costs in order to stimulate the extra demand. Snow Company still wants to earn a $198,000 profit, by how much can Snow Co. increase advertising costs to help achieve its goal?
Super Sales Company is the exclusive distributor for a high-quality knapsack. The product sells for $100 per unit and has a CM ratio of 40%. The company's fixed expenses are $459,000 per year. The company plans to sell 12,000 knapsacks this year. Required: 1. What are the variable expenses per unit? Variable expenses per unit 2. Use the equation method for the following: a. What is the break-even point in units and in sales dollars? Break-even point in units Break-even point in sales dollars b. What sales level in units and in sales dollars is required to earn an annual profit of $99,000? Sales in units Sales in dollars c. What sales level in units is required to earn an annual after-tax profit of $99,000 if the tax rate is 25%? Sales in units d. Assume that through negotiation with the manufacturer, Super Sales Company is able to reduce its variable expenses by $5 per unit. What is the company's new break-even point in units and in sales dollars? (Do not round intermediate…
How do I solve the chart?
Cheetah Company manufactures custom-designed skins (covers) for iPods® and other portable electronic devices. Variable costs are $9.20 per custom skin, the price is $19, and fixed costs are $104,860. 1. What is the contribution margin for one custom skin? 2. How many custom skins must Cheetah Company sell to break even? 3. If Cheetah Company sells 13,000 custom skins, what is the operating income? Calculate the margin of safety in units and in sales revenue if 13,000 custom skins are sold.
Gabe industires sells two products, baic models and deluxe models. Basic models sell for $38 per unit with variable costs of $30 per unit. Deluxe models sell for $55 per unit with variable costs of $30 per unit. Total fixed costs for the company are $715. Gabe industries typically sells five basic models for every deluxe model. What is the breakeven point for basic models and deluxe models?

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