Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics:$12.00 per caseSales priceVariable costsFixed costs5.50 per case390,000 per yearExercise 3-34 (Static) Basic Decision Analysis Using CVP (LO 3-1)Assume that the company plans to sell 75,000 units annually. Consider requirements (b), (c), and (d) Independently of each other.Required:a. What will be the operating profit?b. What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent?Note: Do not round intermediate calculations.c. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent?Note: Do not round intermediate calculations.d. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher thanprojected. What Impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?Note: Do not round Intermediate calculations.Complete this question by entering your answers in the tabs below.Required A Required B Required C Required D

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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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Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.11 $ 543.37 $ 519.00 Variable cost per unit $ 252.05 $ 420.86 $ 397.71 Time on the constraint (minutes) 4.00 8.00 8.00 Required: a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.) A. GK LG QX B. Maximun Amount
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ______ : _____ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans ______ 3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales calculated in Requirement 2. If…
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Answer the following questions. Required 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to save $25 per unit of fixed costs but continue to incur the remaining $35 per unit. Should Deibler accept HT's offer? Explain. 2. QT Manufacturing is deciding whether to keep or replace an old machine. It obtains the following information: (Click the icon to view the information.) QT Manufacturing uses straight-line depreciation. Ignore the time value of money and income taxes. Should QT replace the old machine? Explain. A Requirement 1. Deibler Computers makes 5,600 units of a circuit board, CB76, at a cost of $210 each. Variable cost per unit is $150, and fixed cost per unit is $60. HT Electronics offers to supply 5,600 units of CB76 for $185. If Deibler buys from HT, it will be able to…
Wilderness Products, Incorporated, has designed a self-inflating sleeping pad for use by backpackers and campers. The following information is available about the new product: a. An investment of $1,350,000 will be necessary to carry inventories and accounts receivable and to purchase some new equipment needed in the manufacturing process. The company's required rate of return is 24% on all investments. b. A standard cost card has been prepared for the sleeping pad, as shown below: Direct materials Direct labor Manufacturing overhead (20% variable) Total standard cost per pad Standard Quantity or Hours 4.0 yards 2.4 hours 2.4 hours Standard Price or Rate $2.70 per yard $8.00 per hour $12.50 per hour Standard Cost $10.80 19.20 30.00 $ 60.00 c. The only variable selling and administrative expense will be a sales commission of $9 per pad. The fixed selling and administrative expenses will be $732,000 per year. d. Because the company manufactures many products, no more than 38,400 direct…
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urrently, the unit selling price of a product is $410, the unit variable cost is $340, and the total fixed costs are $1,176,000. A proposal is being evaluated to increase the unit selling price to $460. a. Compute the current break-even sales (units).fill in the blank 1 of 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.fill in the blank 1 of 1 units
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Charlevoix Cases makes mobile phone cases. The company has collected the following price and cost characteristics: Sales price $ 12.00 per case Variable costs 5.50 per case Fixed costs 403,000 per year Assume that the company plans to sell 77,000 units annually. Consider requirements (b), (c), and (d) independently of each other. Required: What will be the operating profit? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? Note: Do not round intermediate calculations. What is the impact on operating profit if variable costs per unit decrease by 20 percent? Increase by 10 percent? Note: Do not round intermediate calculations. Suppose that fixed costs for the year are 20 percent lower than projected and variable costs per unit are 20 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? Note: Do not round intermediate…
Show Me How E Print Item O eBook Break-Even Sales Currently, the unit selling price of a product is $370, the unit variable cost is $300, and the total fixed costs are $1,309,000. A proposal is being evaluated to increase the unit selling price to $410. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units heck My Work 4 more Check My Work uses remaining. Previous All work saved. Email Instructor

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