1.Calculate expected gross margin ifAshleyproduces18,000,27,000,or29,700books. (Make sure you include the production-volume variance as part of cost of goods sold.) Estimated sales18,000 booksBeginning inventory0 booksAverage selling price$77 per bookVariable production costs$52 per bookFixed production costs$288,000 per semester The fixed-cost allocation rate is based on expected sales and is therefore equal to$288,000÷18,000books =$16per book.

Lets understand the basics.Gross profit is a all margin generated on sales of product. It is derived…

Answered: Calculate expected gross margin if…

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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Estimated sales	18,000 books
Beginning inventory	0 books
Average selling price	$77 per book
Variable production costs	$52 per book
Fixed production costs	$288,000 per semester

Similar questions

REQUIRED Use the information provided below to answer each of the following questions independently: 2.1 Calculate the break-even quantity. (2 Marks) 2.2 Calculate the sales value required to achieve a net profit of R150 000, using the marginal income ratio. (4 Marks) 2.3 Determine the selling price per unit if a net profit of R624 600 is desired. (4 Marks) INFORMATION The following information was extracted from the budget of Mary's Manufacturers for the period July to December 2021: 1. Total production and sales 2 300 units 2. Selling price per unit R200 3. Variable manufacturing costs per unit: Direct materials R60 Direct labour R40 Overheads R20 4. Fixed manufacturing overheads R200 000 5. Other costs: Fixed marketing and administrative costs R100 000 Sales commission 10% of sales
Atlantic Company sells a product with a break-even point of 6,355 sales units. The varlable cost is $75 per unit, and fixed costs are $197,005. Determine the following: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $44,795 units Previous Next MacBook Air
4. Genesis Company is a wholesaler. It purchases 60,000 units of Product X per month for sale to retailers. The cost of placing an order is P100. The cost of holding one unit of inventory for one year is P4. Note: Kindly input your answer with comma. Example: 10,000 Required: a. Compute the economic order quantity. b. How many orders would be placed under the EOQ policy? c. Compute the annual ordering cost for the EOQ. d. Compute the annual carrying cost for the EOQ. e. Compute the total inventory-related cost at the EOQ.
Atlantic Company sells a product with a break-even point of 3,517 sales units. The variable cost is $115 per unit, and fixed costs are $140,680. Determine the: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $55,440 units
15. MM Co. expects total sales of P10,000. The price per unit is P5. The firm estimates an ordering cost of P7.50 per order, with an inventory cost of PO.70 per unit. What is the optimum order size? A. 147 units C. 327 units D. 463 units B. 207 units
ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding cost is 10 per cent of unit cost. The unit cost depends on the quantity ordered as follows: Quantity 1-199 Unit Cost (S) 20 200-499 18 500-799 16 800+ 12 > Assume that demand has a constant rate and do not stockout; a) What is the optimal order size? b) Determine the yearly order quantity
A company has annual demand for its product of 800,000 units. Eachunit costs $10. Ordering costs are $400 per order and the annual holdingcost per unit is $0.85.A 0.65% discount is available on all orders of atleast 15,000 units and a 0.75% discount for orders of at least 35,000units.Required:-Calculate the optimum order level to reduce total inventory costs
3.1 REQUIRED Calculate the following from the information given below: 3.1.1 Break-even quantity. 3.1.2 Break-even value using the marginal income 3.1.3 Margin of safety 3.1.4 Total Marginal Income and Net Profit/Loss if the sales price is reduced to R90 per unit.INFORMATION Dynamo Ltd manufactures calculators. The following information was extracted from the budget for the year ended 31 December 2023: Sales volume 20 000 units Selling price per unit R100 Variable manufacturing cost per unit R50 Variable marketing cost per unit 10% of the unit selling price Fixed manufacturing cost R400 000 Fixed administration and marketing costs R200 000
Demand for a product is 12,000 units per year. Every time an order is made, the company must pay $15.00 per order. The cost to hold an order in inventory is $2.00 per unit per year. Calculate the cost if the company orders 3,000 units each time. O A. $100 O B. $125 OC. $10,000 O D. $150
2. The ABC Company consumes inventory of 67,500 units of components per year. The carrying cost per unit is RO 1.50. The fixed order cost is RO 25 per order. The production planning is 365-day year. a. What is the Economic Order Quantity (EOQ)? Interpret. 219 S b. Calculate and interpret the optimal number of orders to be placed. the ida c. If it takes five days to receive an order from suppliers, at what inventory level should ABC Company place another order.Interpret.
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?
Use the information provided below to calculate the annual Economic Order Quantity. INFORMATIONThe following details have been supplied by Fuze Limited for one of its products:Sales per month 7 500 unitsCarrying costs as a percentage of the unit purchase price 20%Purchase price per unit R100Cost of placing an order R10

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