Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below:Company 1Company 2Selling price per deckCost of paper deckPrinting ink per deck$ 3.000.620.13$3.000.65Labor per deck0.750.151.25Variable overhead perdeck0.300.35Fixed costs$960.000$252,000Given these data, which of the following responses is correct?(In units)ABC.D.Breakeven point for Co. 1533,334533,334 800,000 800,000Breakeven point for Co. 2105,000105.000420.000 420,000Volume at which profits ofCo. 1 and Co. 2 are equal1,000.000 1.180.000 1,000,000 1,180.000None BADCData concerning NikNik Corporation's activity for the 6 months appear below:MachineElectrical Cost HoursJanuaryP3,120February4,460March3.500April5,040May2,900June3,2004.0006.0004,8005,8003.6004,200Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo). Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below:Company 1Company 2Selling price per deck$ 3.00$3.00Cost of paper deck0.620.65Printing ink per deck0.130.15Labor per deck0.751.25Variable overhead per0.300.35deckFixed costs$960,000$252,000Given these data, which of the following responses is correct?(In units)A.C.D.Breakeven point for Co. 1533,334533,334800,000 800,000Breakeven point for Co. 2105,000105,000420,000 420,000Volume at which profits ofCo. 1 and Co. 2 are equal1,000,000 1,180,000 1,000,000 1,180,000O NoneO BO AO DB. Data concerning NikNik Corporation's activity for the 6 months appear below:MachineElectrical Cost HoursJanuary P3,1204,000February 4,4606,000March3,5004,800April5,0405,800May2,9003,600June3,2004,200Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo).e.g. 1405.688888, Type 1405.69

Breakeven is the point where company's profit is equal to 0. This is the point where company earns…

Answered: Company 1 Company 2 Selling price per…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Two companies are expected to have annual sales of 1,000,000 decks of playing cards next year. Estimates for next year are presented below: Company 1 Company 2 Selling price per deck Cost of paper deck Printing ink per deck $ 3.00 0.62 0.13 $3.00 0.65 Labor per deck 0.75 0.15 1.25 Variable overhead per deck 0.30 0.35 Fixed costs $960.000 $252,000 Given these data, which of the following responses is correct? (In units) A B C. D. Breakeven point for Co. 1 533,334 533,334 800,000 800,000 Breakeven point for Co. 2 105,000 105.000 420.000 420,000 Volume at which profits of Co. 1 and Co. 2 are equal 1,000.000 1.180.000 1,000,000 1,180.000 None B A D C Data concerning NikNik Corporation's activity for the 6 months appear below: Machine Electrical Cost Hours January P3,120 February 4,460 March 3.500 April 5,040 May 2,900 June 3,200 4.000 6.000 4,800 5,800 3.600 4,200 Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo).

Data concerning NikNik Corporation's activity for the 6 months appear below:
Machine
Electrical Cost Hours
January P3,120
4,000
February 4,460
6,000
March
3,500
4,800
April
5,040
5,800
May
2,900
3,600
June
3,200
4,200
Using the high-low method of analysis, estimate the variable electrical cost per machine hour (nearest centavo).
e.g. 1405.688888, Type 1405.69

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