Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variablecosts as follows:UnitsDemanded73,00083,00093,000103,000113,000UnitPrice$31O $28O $27O $30$29$3130292827Total VariableCosts$1,606,0001,826,0002,046,0002,266,0002,486,000What price should Calico Joe Fabrics charge to maximize profits?

Profit is the financial gain or positive result obtained when the revenue generated from the sale of…

Answered: Calico Joe Fabrics sells a single…

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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The following information is for Alex Corp: Product X: Revenue Variable Cost Product Y: Revenue Variable Cost Total fixed costs $12.00 $4.50 $25.00 $10.00 $40,500 What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y? 1,960,000 1,240,500 1,200,000 1,159,500
Zeta Company sells a single product with a selling price of $300 per unit. Per unit variable costs are $82.00 and total fixed costs are $127,500. The number of units Zeta needs to sell to achieve its target profit of $50,000 is closest to: 610 814 a. b. C. d. 1,555 2,165
Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details are below: A Average monthly units sold 10,000 2,000 8,000 Sales price per unit 2,000 1,000 5,000 Variable cost per unit 1,500 500 3,000 Total break even units are 1,000. 1. Calculate: i. Quantity and value of units of each A, B and C at breakeven Fixed cost based on the data given above ii. 2. Without making further calculations, explain that if fixed cost increases by 10% what impact would this have on the break-even point?
Atlantic Company sells a product with a break-even point of 6,148 sales units. The variable cost is $71 per unit, and fixed costs are $178,292. Determine the following:
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The following information is for Bullwinkle Industries Inc.: Line Item Description East West Sales volume (units): Product Alpha 45,000 38,000 Product Omega 60,000 50,000 Sales price: Product Alpha $500 $600 Product Omega $250 $225 Variable cost per unit: Product Alpha $275 $275 Product Omega $140 $140 a. Determine the contribution margin for the East Region and West Region.East Region: fill in the blank 1 of 2$West Region: fill in the blank 2 of 2$ b. Determine the contribution margin ratio for the East Region and West Region. Round the contribution margin ratio to one-tenth of a percent.East Region: fill in the blank 1 of 2%West Region: fill in the blank 2 of 2%
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: Sales Price Variable Cost per Unit Product per Unit $275 350 395 Model 101 Model 201 Model 301 The current product mix is 4:3:2. The three models share total fixed costs of $657,000. $180 215 240 A. Calculate the sales price per composite unit. Sales price $ B. What is the contribution margin per composite unit? Contribution margin $ per composite unit Break-even point in dollars $ Break-even point in units per composite unit. C. Calculate Manatoah's break-even point in both dollars and units. units
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…
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