Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: a. Compute CPT's unit selling price that will yield a profit of $156,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $170,100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Complete this question by entering your answers in the tabs below. Required A Required B Selling price Total Annual Costs (10,000 units) $ 116,000 54,000 120,000 94,000 $ 384,000 Required C Compute CPT's unit selling price that will yield a profit of $156,000, given sales of Note: Round your answer to 2 decimal places. per unit

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
Please do not give image format
Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT
management prides itself on its scientific management methods. Applying
those methods, the controller estimates the following monthly costs based on
10,000 units (produced and sold):
Direct material
Direct labor
Manufacturing overhead
Selling, general, and administrative
Total
Required:
a. Compute CPT's unit selling price that will yield a profit of $156,000, given
sales of 10,000 units.
b. What dollar sales does CPT need to achieve to generate a 15 percent profit
on sales, assuming variable costs per unit are 55 percent of the selling
price per unit and fixed costs are $170,100.
c. Management believes that a selling price of $100.00 per unit is reasonable
given current market conditions. How many units must CPT sell to generate
the revenues (dollar sales) determined in requirement (b)?
Complete this question by entering your answers in the tabs below.
Required A
Required B
Selling price
Total Annual Costs
(10,000 units)
$ 116,000
54,000
120,000
94,000
$ 384,000
Required C
Compute CPT's unit selling price that will yield a profit of $156,000, given sales of
Note: Round your answer to 2 decimal places.
per unit
Transcribed Image Text:Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Required: a. Compute CPT's unit selling price that will yield a profit of $156,000, given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $170,100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Complete this question by entering your answers in the tabs below. Required A Required B Selling price Total Annual Costs (10,000 units) $ 116,000 54,000 120,000 94,000 $ 384,000 Required C Compute CPT's unit selling price that will yield a profit of $156,000, given sales of Note: Round your answer to 2 decimal places. per unit
Required A
What dollar sales does CPT need to achieve to generate a 15 percent profit on sale
percent of the selling price per unit and fixed costs are $170,100.
CPT's dollar sales
Required B Required C
Show Transcribed Text
Required A
Number of units
Required B
Required C
رم
Management believes that a selling price of $100.00 per unit is reasonable given c
must CPT sell to generate the revenues (dollar sales) determined in requirement (
Note: Round your final answer to the nearest whole unit.
Transcribed Image Text:Required A What dollar sales does CPT need to achieve to generate a 15 percent profit on sale percent of the selling price per unit and fixed costs are $170,100. CPT's dollar sales Required B Required C Show Transcribed Text Required A Number of units Required B Required C رم Management believes that a selling price of $100.00 per unit is reasonable given c must CPT sell to generate the revenues (dollar sales) determined in requirement ( Note: Round your final answer to the nearest whole unit.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 3 images

Blurred answer
Knowledge Booster
Quality control
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education