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

= Adam's Repair Shop has a monthly target operating income of $12,500. Variable expenses are 75% of sales, and monthly fixed expenses are $9,500. Hint: The contribution margin ratio= 100% - Variable expenses percentage of sales. Read the requirements. Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Begin by identifying the formula to compute the margin of safety. = Margin of safety in dollars (Round intermediate calculations up to the nearest whole dollar and your final answer to the nearest whole dollar.) The margin of safety is Requirement 2. Express Adam's margin of safety as a percentage of target sales. Begin by identifying the formula to compute the margin of safety as a percentage of target sales. (Round the percentage to the nearest whole percent.) The margin of safety percentage is % of target sales. Requirement 3. What is Adam's operating leverage factor at the target level of operating income? Begin by identifying the…
The Atlantic Company sells a product with a break-even point of 4,247 sales units. The variable cost is $73 per unit, and fixed costs are $110,422. Determine the following: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $24,986 units
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
Diagnostic Supplies has expected sales of 98,000 units per year, carrying costs of $5 per unit, and an ordering cost of $8 per order. a. What is the economic ordering quantity? Economic ordering quantity b-1. What is the average inventory? Average inventory b-2. What is the total carrying cost? Total carrying cost units units
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
Use the information given below to calculate each of the following independently 3.3 Break-even quantity if the selling price drops by 10% INFORMATIONSlumber Limited manufactures beds. The following information was extracted from the budget for 2024:Expected production and sales (units) 1 200Selling price per bed R6 000Direct materials cost per bed R1 700Direct labour cost per bed R860Variable manufacturing overheads cost per bed R320Fixed manufacturing overheads cost R1 084 800Sales commission (as a percentage of the selling price) 20%Fixed administrative and selling costs R720 000 PLEASE PUT THE ANSWER IN RANDS
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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