Cube Industries sells three products-P, Q and R. Here are data regarding these three products:Product QAnnual customer demand, in unitsSelling price, per unilVariable costs, per unitDirect labor hours to produce one unitO $17 per hourO $18 per hourO $19 per hourO $21 per hourProduct PO None of the above525 units$660$28020 hours450 units$940$51525 hoursProduct R600 unitsCube's current capacity is 18,300 direct labor hours per year. How much should Cube be willing topay per direct labor hour to acquire additional capacity?$370$16010 hours

Contribution margin is the excess of selling price over the variable cost. However, when there is a…

Answered: Cube industries sells three pr Annual…

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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Finley Corporation has monthly fixed costs of $240,000. It sells two products for which it has provided the following information. Sales Price Product 1 $ Product 2 35 40 Contribution Margin $ 21 10 a. What total monthly sales revenue is required to break even if the relative sales mix is 20 percent for Product 1 and 80 percent for Product 2? (Hint: Determine the contribution margin ratio for each product.) b. What total monthly sales revenue is required to earn a monthly operating income of $105,000 if the relative sales mix is 60 percent for Product 1 and 40 percent for Product 2?
A Company produces a single product which sells for $20 per unit. Variable Cost is $15 and fixed cost for the year is $630,000 Required: (1) Calculate Sales value needed to earn profit of 10% on sales (2) Calculate sales price per unit if BEP down to 120,000 units
Northwest Technology Inc. manufactures and sells two products, digital game players and computer tablets. The fixed costs are $936,000, and the sales mix is 70% game players and 30% computer tablets. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Game players $ 50 $30 Tablets 120 80 a. Compute the break-even sales (units) for the overall product, E.units b. How many units of each product, game players and tablets, would be sold at the break-even point? Digital game players units Computer tablets units
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Vaughn Candle Supply makes candles. The sales mix (as a percentage of total dollar sales) of its three product lines is birthday candles 30%, standard tapered candles 55%, and large scented candles 15%. The contribution margin ratio of each candle type is shown below. Candle Type Contribution Margin Ratio Birthday 20% Standard tapered 30% Large scented 50% If the company’s fixed costs are $ 406,500 per year, what is the dollar amount of each type of candle that must be sold to break even? Birthday Standard tapered Large scented Total break-even point $ enter a dollar amount $ enter a dollar amount $ enter a dollar amount
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Morris Industries data Product Sales Price per Unit Variable Cost per Unit AA $42 $34 BB 64 38 CC 81 47 Their sales mix is reflected as a ratio of 10:1:2. Annual fixed costs shared by the three products are $330,092 per year. What is their break-even point in sales dollars? Do not round until submitting your final answer. Round to the whole dollar, no decimals.
A manufacturer of ovens sells them for $1,370.00 each. The variable costs are $1,020.00 per unit. The manufacturer's factory has annual fixed costs of $2,460,000.00. Given the expected sales volume of 3,700 units for this year, what will be this year's net income? Round to two decimal places
Coastal Carolina Company has a product with a unit selling price of $200, the unit variable cost is $110, and the total monthly fixed costs are $300,000. What is Coastal Carolina's contribution margin ratio? OA) 182% B) 55% C) 45% OD) 150%
Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?
Sunland Co. is considering the introduction of three new products. Per unit sales and cost information are as follows: Sales Variable costs Fixed costs Labor hours per unit Monthly demand in units A $ 3.00 $ 1.20 $ 0.50 0.75 hours 700 B $ 5.00 $ 3.40 $ 1.00 1.25 hours 650 C $ 13.00 $ 7.00 $ 3.50 2.00 hour 250 The company has only 1,600 direct labor hours available to commit to production of any new products. How many of each product should Sunland Co. produce and sell to maximize its profit? (Round per unit calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 5,275.)
Finley Corporation has monthly fixed costs of $67,000. It sells two products for which it has provided the following information. Contribution Sales Price Product 1 Product 2 $15 20 Margin $9 4 a. What total monthly sales revenue is required to break even if the relative sales mix is 30 percent for Product 1 and 70 percent Product 2? (Hint: Determine the contribution margin ratio for each product.) (Round your answer to the nearest dollar amount.) b. What total monthly sales revenue is required to earn a monthly operating income of $16,000 if the relative sales mix is 20 perce for Product 1 and 80 percent for Product 2? (Round your answer to the nearest dollar amount.) Answer is complete but not entirely correct. a. Break even sales revenue $ 190,625 b. Target sales revenue $275,000 B

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