Please help me Pharoah Corporation has collected the following information after its first yearof sales. Sales were $1,350,000 on 90,000 units; selling expenses $225,000(40% variable and 60% fixed); direct materials $459,900; direct labor $261,000;administrative expenses $243,000 (20% variable and 80% fixed); andmanufacturing overhead $315,000 (70% variable and 30% fixed). Topmanagement has asked you to do a CVP analysis so that it can make plans forthe coming year. It has projected that unit sales will increase by 10% next year.The company is considering a purchase of equipment that would reduce itsdirect labor costs by $93,600 and would change its manufacturing overheadcosts to 30% variable and 70% fixed (assume total manufacturing overheadcost is $315,000, as above). It is also considering switching to a purecommission basis for its sales staff. This would change selling expenses to 90%variable and 10% fixed (assume total selling expense is $225,000, as above).Compute (1) the contribution margin and (2) the contribution margin ratio, andrecompute (3) the break-even point in sales dollars. (Round contributionmargin ratio to 2 decimal places, e.g. 0.25 and all other answersto O decimalplaces, e.g. 2,520. Use the current year numbersfor calculations.)

Previous Year : Selling price per unit = Sales value / Sales in units…

Answered: Compute (1) the contribution margin and…

Compute (1) the contribution margin and (2) the contribution margin ratio, and recompute (3) the break-even point in sales dollars. (Round contribution

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter2: Basic Cost Management Concepts

Section: Chapter Questions

Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...

See similar textbooks

Similar questions

Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was a. 55,500 b. 92,500 c. 66,500 d. 39,900
Ellerson Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 278,000, direct labor cost was 189,000, and overhead cost was 523,000. During the year, 100,000 units were completed. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 2.70 is direct materials and 5.30 is overhead. What is the prime cost per unit? Conversion cost per unit?
Orinder Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 275,800, direct labor cost was 153,000, and overhead cost was 267,300. There were 25,000 units produced. Unit manufacturing cost (rounded to the nearest cent) is a. 28.40 b. 27.98 c. 34.95 d. 27.55
Last year, Orsen Company produced 25,000 juicers and sold 26,500 juicers for 60 each. The actual variable unit cost is as follows: Fixed overhead was 320,000. Fixed selling expenses consisted of advertising copayments totaling 110,000. Fixed administrative expenses were 236,000. There were no beginning and ending work-in-process inventories. Beginning finished goods inventory was 148,000 for 4,000 juicers. The value of ending inventory reported on the financial statements was Refer to the information in 2.24. The gross margin percentage for last year was a. 12.57% b. 55.67% c. 28.95% d. 38.33%
Wyandotte Company provided the following information for the last calendar year: During the year, direct materials purchases amounted to 256,900, direct labor cost was 176,000, and overhead cost was 308,400. There were 40,000 units produced. Required: 1. Calculate the total cost of direct materials used in production. 2. Calculate the cost of goods manufactured. Calculate the unit manufacturing cost. 3. Of the unit manufacturing cost calculated in Requirement 2, 6.62 is direct materials and 7.71 is overhead. What is the prime cost per unit? Conversion cost per unit?
During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of $5,500,000 and average capital assets of $12,000, 000. What is the sales margin?
Corazon Manufacturing Company has a purchasing department staffed by five purchasing agents. Each agent is paid 28,000 per year and is able to process 4,000 purchase orders. Last year, 17,800 purchase orders were processed by the five agents. Required: 1. Calculate the activity rate per purchase order. 2. Calculate, in terms of purchase orders, the: a. total activity availability b. unused capacity 3. Calculate the dollar cost of: a. total activity availability b. unused capacity 4. Express total activity availability in terms of activity capacity used and unused capacity. 5. What if one of the purchasing agents agreed to work half time for 14,000? How many purchase orders could be processed by four and a half purchasing agents? What would unused capacity be in purchase orders?
Ivanhoe Corporation has collected the following information after its first year of sales. Sales were $1,620,000 on 108,000 units; selling expenses $270,000 (40% variable and 60% fixed); direct materials $551,880; direct labor $313,200; administrative expenses $291,600 (20% variable and 80% fixed); and manufacturing overhead $378,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. Compute the contribution margin for the current year, contribution margin for the projected year and fixed costs for current year
Sunland Corporation has collected the following information after its first year of sales. Sales were $1,410,000 on 94,000 units; selling expenses $235,000 (40% variable and 60% fixed); direct materials $480,340; direct labor $272,600; administrative expenses $253,800 (20% variable and 80% fixed); and manufacturing overhead $329,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) New attempt is in progress. Some of the new entries may impact the last attempt grading. Your answer is incorrect. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $enter a dollar amount Contribution margin for projected year $enter a dollar amount (2)…
Sandhill Corporation has collected the following information after its first year of sales. Sales were $1,470,000 on 98,000 units; selling expenses $245,000 (40% variable and 60% fixed); direct materials $500,780; direct labor $284,200; administrative expenses $264,600 (20% variable and 80% fixed); and manufacturing overhead $343,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $enter a dollar amount Contribution margin for projected year $enter a dollar amount (2) Fixed costs for current year $enter a dollar amount
Cullumber Corporation has collected the following information after its first year of sales. Sales were $1,440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382.000 ( 70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) (2) Contribution margin for current year Contribution margin for projected year Fixed Costs $ I $
Sunland Corporation has collected the following information after its first year of sales. Sales were $1,600,000 on 100,000 units, selling expenses $200,000 (40% variable and 60% fixed), direct materials $508,000, direct labor $290,400, administrative expenses $278,000 (20% variable and 80% fixed), and manufacturing overhead $380,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Correct answer icon Your answer is correct. Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) Contribution margin for current year $400000 Contribution margin for projected year $ 440000 (2) Fixed Costs $ 456400 (b) Correct answer icon…