Burchard Company sold 39,000 units of its only product for $16.80 per unit this year. Manufacturing and selling the product required $308,000 of fixed costs. Its per unit variable costs follow. Direct materials $ 4.40 Direct labor 3.40 Variable overhead costs 0.44 Variable selling and administrative costs 0.24 For the next year, management will use a new material, which will reduce direct materials costs to $1.32 per unit and reduce direct labor costs to $2.38 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $21.84 per unit, which would decrease unit sales volume to 33,150 units. Required: 1. Compute the contribution margin per unit from (a) using the new material and (b) using the new material and increasing the selling price. (Round your answers to 2 decimal places.)

Burchard Company sold 39,000 units of its only product for $16.80 per unit this year. Manufacturing and selling the product required $308,000 of fixed costs. Its per unit variable costs follow. Direct materials $ 4.40 Direct labor 3.40 Variable overhead costs 0.44 Variable selling and administrative costs 0.24 For the next year, management will use a new material, which will reduce direct materials costs to $1.32 per unit and reduce direct labor costs to $2.38 per unit. Sales, total fixed costs, variable overhead costs per unit, and variable selling and administrative costs per unit will not change. Management is also considering raising its selling price to $21.84 per unit, which would decrease unit sales volume to 33,150 units. Required: 1. Compute the contribution margin per unit from (a) using the new material and (b) using the new material and increasing the selling price. (Round your answers to 2 decimal places.)

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

Load the wooldridge package in your R script using the library function: library (wooldridge) Load the wage 2 dataset by writing (in your R script): data = wage 2 This dataset contains information on individuals' monthly wage (the wage variable), number of hours worked per week (the hours variable), IQ (the IQ variable), and other variables. Add a new variable to data (named hourly_wage) which is equal to monthly wage wage divided by 4 times the number of hours worked per week: hourly age = Assign the 4x hours dataframe data (after adding the new variable) to answer1. 2. What is the mean hourly wage? 3. What is the minimum number of years of education in the dataset? 4. What is the number of observations? 5. Estimate the following model: (i(i using the Im function. Assign your model to answer5. 6. What is the coefficient on educ in the model in the previous question? (Hint: Your answer should be a positive number.) W
I need typing clear urjent no chatgpt use i will give 5 upvotes
A company has three types of products: gadgets, widgets, and gizmos. The cost and market price of each type is listed below. Complete the table by applying the lower of cost and net realizable value (LCNRV). Do not enter dollar signs or commas in the input boxes. Description Category Cost NRV Individual LCNRV Applied to Category Total Gadget Type 1 Gadgets $1,170 $1,000 $ Gadget Type 2 Gadgets $5,700 $5,600 $ Total Gadgets Widget A Widgets $140 $150 $ Widget B Widgets $130 $190 $ Total Widgets $ tA Gizmo 1 Gizmos $2,280 $2,450 $ Gizmo 2 Gizmos $2,280 $1,630 $ Total Gizmos Total $ A $ EA SA SA EA A
Do not give image format
Font Paragraph Styles The Borstal Company has to choose between two machines that do the same job but have different lives. The two machines have the following costs: Year Machine A Machine B 0 $ 43,500 $ 53,500 1 10,700 9,400 2 10,700 9,400 3 4 10,700+ replace 9,400 9,400+ replace These costs are expressed in real terms. a. Suppose you are Borstal's financial manager. If you had to buy one or the other machine and rent it to the production manager for that machine's economic life, what annual rental payment would you have to charge? Assume a 7% real discount rate and ignore taxes. Note: Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places. b. Which machine should Borstal buy? c. If there is steady 5% per year inflation, what will be the annual rental payment for machine B for the second year? Note: Enter your answer as a positive value rounded to 2 decimal places. a. Machine A a. Machine B b. Which machine should Borstal buy? c.…
Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
Please help me with Req 4. If someone can help I will give a thumbs up. If you zoom in I believe the image should beome clearer. Thanks!
Please do not give solution in image format thanku
i need the answer quickly