Calculate the estimated break-even point in annual unit sales of the new product if Crane Company uses (1) the capital-intensive manufacturing method, or (2) the labour-intensivemanufacturing method.Break-even pointQuestion Part Score(1)Capital-intensive manufacturing methodAnnual sales volumeunitsDetermine the annual unit sales volume at which there would be no difference between methods.(2)Labour-intensive manufacturing methodunitsunits Crane Company has decided to introduce a new product that can be manufactured by either a capital-intensive method or a labour-intensive method. The manufacturing method will not affectthe quality of the product. The estimated manufacturing costs under the two methods are as follows:Direct materialsDirect labourVariable overheadFixed manufacturing costsCapital-Intensive$10.00 per unit$12.00 per unit$6.00 per unit$2,624,960Labour-Intensive$11.00 per unit$16.00 per unit$9.00 per unit$1,612,000Crane's market research department has recommended an introductory unit sales price of $64. The incremental selling expenses are estimated to be $522,080 annually, plus $4 for each unitsold, regardless of the manufacturing method.

BREAKEVEN POINT Break Even means the volume of production or sales where there is no profit or…

Calculate the estimated break-even point in annual unit sales of the new product if Crane Company uses (1) the capital-intensive manufacturing method, or (2) the labour-intensive manufacturing method. Break-even point Question Part Score (1) Capital-intensive manufacturing method Annual sales volume units Determine the annual unit sales volume at which there would be no difference between methods. (2) Labour-intensive manufacturing method units units

Calculate the estimated break-even point in annual unit sales of the new product if Crane Company uses (1) the capital-intensive manufacturing method, or (2) the labour-intensive manufacturing method. Break-even point Question Part Score (1) Capital-intensive manufacturing method Annual sales volume units Determine the annual unit sales volume at which there would be no difference between methods. (2) Labour-intensive manufacturing method units units

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

Pharoah Company has a unit selling price of $576, variable costs per unit of $324, and fixed costs of $183,456. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. Break-even point (a) Mathematical Equation (b) Unit contribution margin units units
Need ANSWER please provide Solutions
The following activity and cost data that were provided by Hoist Corporation would help in estimating its future maintenance costs: Units Maintenance cost P1,350 7 P1,590 11 P1,920 15 P2,100 Using the least squares regression method to estimates the cost formula, the expected total cost for an activity level of 10 units would be closest to:
You are informed that a company produces Sulfuric acid by combining two variable factors,labor (L) and Sulphur (S), with one fixed input, capital stock (Ko). The company pays $2 anhour for labor and $1 for Sulphur; the fixed costs associated with its capital stock total $150 a period.a) Write out the general form of the Company's total costsb) Suppose the Company's short-run production function is given by the followingQ=c (L, S, K0) = 2LSWhere each unit of Q represents a thousand products.Determine the minimum total cost at which the company could produce 100,000products.c) To achieve minimum cost, what quantities of labor and plastic would the company haveto use?
What is the answer is correct?!!
If variable manufacturing costs are $13 per unit and total fixed manufacturing costs are $198,900, what is the manufacturing cost per unit if: a. 3,900 units are manufactured and the company uses the variable costing concept?$fill in the blank 1 b. 5,100 units are manufactured and the company uses the variable costing concept?$fill in the blank 2 c. 3,900 units are manufactured and the company uses the absorption costing concept?$fill in the blank 3 d. 5,100 units are manufactured and the company uses the absorption costing concept?$fill in the blank 4
IS THIS CORRECT?
Use the following information to answer the question: Selling price per unit $200 Variable manufacturing costs per unit $ 50 Fixed manufacturing costs per unit $ 60 Variable selling costs per unit $ 40 Fixed selling costs per unit $ 20 Expected production and sales 800 units Contribution margin per unit is:
Answer all parts of the question 1. The unit costs ($) for manufacturing a component for a washing machine are as follows: Direct labor: 20; direct materials: $5; indirect labor and materials: 20% of direct labor; fixed and administrative costs: 30; selling costs: 10. a) Assuming a 90% first-pass yield, what should the unit selling price be if the manufacturer desires a 20% profit margin for conforming product? b) The manufacturer has identified a secondary market for the nonconforming products, that they can sell at $75/unit. Conforming product they wish to sell at 30% above costs. What is the expected profit per unit sold if the company has the same first-pass yield as in part a)? c) If the company improves its first-pass yield to 98%, what is the expected profit per unit sold, assuming other conditions are as stated in part b)?
Classify each cost element as either fixed, variable or mixed Calculate: the variable production cost per unit and the total fixed production overhead Calculate the total variable cost per unit and the total fixed costs
a) Compute the breakeven sales dollars of cach product assuming the same sales mix remains constant. b) Prepare an analysis showing whether Product Z should be eliminated. The amount of change to net income should be computed. c) Assume the current demand of cach product is same as the sales volume the company has for the year. Below is the machine processing time required for cach product. Product Machine processing time in hours i. How many units should the company produce for each product if there is a constraint of only 24.000 hours of machine processing time in the year. ii. Compute the highest possible net income camed by the company. 3 2 An accountant has prepared the folowing product-line income statement for the year: Product Tatal No of mts sokd 5,000 4,000 4,000 Saks Varible enpermes 200,000 S 120,000 100,000 S 60.000 40,000 S 20,000 60,000 40,000 20,000 Cotribution mangin 80,000 40,000 20,000 Fihed expenses Rert Depreciin 10,000 12,000 8,000 5.000 6,000 2,000 2,400 3,000…
If the high-low points method is used, the results when compared with those under the method of least squares, are (Variable Cost Per Unit, Total Fixed Costs). the given is a. Equal, Equal b. Higher by P1.26, Lower by P2,850 c. Lower by P1.26, Higher by P2,850 d. Higher by P5 , Lower by P1,500