Clay Earth Company sells ceramic pottery at a wholesale price of $ 7.00 per unit. The variable cost of manufacturing is $1.75 per unit. The fixed costs are $5,500 per month. It sold 4, 700 units during this month. Calculate Clay Earth's operating income (loss) for this month.A. $(19,175) B. $(5,500) C. $19, 175 D. $27,400 KClay Earth Company sells ceramic pottery at a wholesale price of $7.00 per unit. The variable cost of manufacturing is $1.75 per unit. The fixed costs are$5,500 per month. It sold 4,700 units during this month. Calculate Clay Earth's operating income (loss) for this month.A. $(19,175)B. $(5,500)OC. $19,175O D. $27,400

The contribution margin is calculated as the difference between the sales and variable costs.…

Clay Earth Company sells ceramic pottery at a wholesale price of $ 7.00 per unit. The variable cost of manufacturing is $1.75 per unit. The fixed costs are $5,500 per month. It sold 4, 700 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $(19,175) B. $(5,500) C. $19, 175 D. $27,400

Clay Earth Company sells ceramic pottery at a wholesale price of $ 7.00 per unit. The variable cost of manufacturing is $1.75 per unit. The fixed costs are $5,500 per month. It sold 4, 700 units during this month. Calculate Clay Earth's operating income (loss) for this month. A. $(19,175) B. $(5,500) C. $19, 175 D. $27,400

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

See similar textbooks

Similar questions

Markson and Sons leases a copy machine with terms that include a fixed fee each month plus acharge for each copy made. Markson made 9,000 copies and paid a total of $480 in January. In April, they paid $320 for 5,000 copies. What is the variable cost per copy if Markson uses the high-low method to analyze costs?
A company produces two products. E and F in batches of 100 units. The production and cost data are: The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product. What is the differential profit from producing product E instead of product F for the year? A. $216,000 B. $204,000 C. $12,000 D. $54,000
West Island distributes a single product. The companys sales and expenses for the month of June are shown. Using the information presented, answer these questions: A. What is the break-even point in units sold and dollar sales? B. What is the total contribution margin at the break-even point? C. If West Island wants to earn a profit of $21,000, how many units would they have to sell? D. Prepare a contribution margin income statement that reflects sales necessary to achieve the target profit.
Clay Earth Company sells ceramic pottery at a wholesale price of $4.00per unit. The variable cost of manufacturing is $1.25 per unit. The fixed costs are $6,800 per month. It sold 5,500 units during this month. Calculate Clay Earth's operating income (loss) for this month. A.$ 8 comma 325 $8,325 B. $(6,800) C. $(8,325) D.$ 15 comma 200
The Abigail Company produces and sell two products, X and Y. Cost and revenue data on the products follow: Product X Product Y P24 Selling price per unit Variable cost per unit Contribution margin per unit P20 12 6. P8 P18 In the most recent month, the company sold 400 units of Product X and 800 units of Product Y. Fixed expenses are P10,000 per month. REQUIRED: 1. Prepare a comparative income statement for both products on the most recent monthly projections. 2. Compute the company's overall monthly break-even point in peso sales.
Frymire Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $240.00 Variable expense per unit $79.20 Fixed expense per month $1,019,472 Assume the company's monthly target profit is $46,000. The dollar sales to attain that target profit is closest to: a. $3,228,703 b. $1,961,477 c. $1,590,257 d. $1,065,472
provide the variable cost per unit
Pathfinder Incorporated produces and sells a single product. Data concerning that product appear below: Description Selling price per unit Variable expense per unit Fixed expense per month Amount $240 $150 $36,000 The break-even in monthly unit sales is closest to: (Round your intermediate calculations to 2 decimal places) O A 240 units B.400 units OC 150 units D.320 units
A Company manufactures and sells one product. The product has the following cost and revenue data: Selling price Per Unit (AED) 70 Variable cost Per Unit (AED) 30 Total fixed expenses per month are as follows: Expenses types AED Advertising Rent Heating 263,069 100,000 100,000 The company produced and sold 10,000 units during the month and had no beginning or ending inventories. a. What is the break-even value in Dirhams?
Data concerning Cutshall Enterprises Corporation's single product appear below: Selling price per unit $225 Variable expense per unit $98 Fixed expense per month $449,640 The unit sales to attain the company's monthly target profit of $32,000 is a. 3,540 units b. 2,141 units c. 4,915 units d. 3,792 units
Guthrie Industries manufactures and sells dog collars. The collars sell for $12 each. Information about the company’s costs is as follows. Variable manufacturing cost per unit $ 2 Variable selling and administrative cost per unit 1 Fixed manufacturing overhead per month $ 250,000 Fixed selling and administrative cost per month 200,000 a. Determine the company's monthly break-even point in units. b. Determine the sales volume (in dollars) required for a monthly operating income of $900,000. c. Compute the company’s margin of safety if its current monthly sales level is $1,400,000. d. Estimate the amount by which monthly operating income will increase if Guthrie anticipates a $60,000 increase in monthly sales volume.
Evansville Company had the following transactions for the month. Number Cost of Units per Unit Purchase 2 $8,000 Purchase 9,000 Purchase 4 9,500 Calculate the gross margin for each of the following cost allocation methods, assuming Evansville sold just one unit of these goods for $12,000. Round your intermediate calculations and final answers to the nearest dollar amount. Gross Margin A. First-in, First-out (FIFO) $4 B. Last-in, First-out (LIFO) C. Weighted Average (AVG) When prices are rising (inflation), which costing method would produce the highest value for gross margin? First-in, First-out Last-in, First-out Weighted Average