Cole Company sells both designer and moderately priced fashion accessories. Top management is deciding whichproduct line to emphasize. Accountants have provided the following data:(Click the icon to view the data.)Prepare an analysis to show which product the company should emphasize. (Enter the units displayed per square footand the contribution marain per square foot to two decimal places.)Units displayed per square foot:DesignerModerately pricedContribution margin per unitContribution margin per square foot of display spaceCapacity-Square feet of display spaceTotal contribution margin at capacityShow Transcribed TextData tableCOAverage sale priceAverage variable costsAverage contribution marginAverage fixed costs (allocated)Average operating income.Designer$$ĈProductModerately PricedPer ItemDesignerModeratelyPriced210 $1001101595 $852164559The Cole Company store in Grand Junction, Colorado, has 15,000square feet of floor space. If Cole Company emphasizes moderatelypriced goods, it can display 1,050 items in the store. If Cole Companyemphasizes designer wear, it can only display 450 designer items.These numbers are also the average monthly sales in units.X(0/2)(0/6)1Incorrect: (management is decidingferately Pricedhe units displayed per squ

The contribution margin per unit is computed by deducting the per unit variable cost from the per…

Answered: Data table Average sale price Average…

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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Shanghai Company sells glasses, fine china, and everyday dinnerware. They use activity-based costing to determine the cost of the shipping and handling activity. The shipping and handling activity has an activity rate of $5 per pound. A box of glasses weighs 2 lbs, the box of china weighs 4 lbs, and a box of everyday dinnerware weighs 6 lbs. Round answers to nearest whole dollar. a Determine the shipping and handling activity for each product. Glasses $fill in the blank 1 China $fill in the blank 2 Everyday dinnerware $fill in the blank 3 b Determine the total shipping and receiving costs for the china if 2,000 boxes are shipped.$fill in the blank 4
Coodie Manulacturers Inc. is approached by a potential customer to fulfill a one - time - only special order for a product similar to one offered to domestic customers. The company has excess capacity. The following per unit data apply for sales to regular customers Variable costs Direct materials $140 80 Direct labor Manufacturing support 155 Marketing costs 45 Fixed costs Manufacturing support 175 Markeling costs 55 Total costs 650 Markup (45%) 293 Targeted selling price $943 For Crandie Manufacturers Inc., what is the minimum acceptable price of this special order? (Assume marketing costs will be incurred for the special order.) OA $293 OB. $420 OC S450 OD. S650 O Time Remaining: 02:33:40 Next ) 2. 3. 4. 5. 6. 7 8. 9. delete W E R. Y
Premium Beds is a retailer of luxury bed frames located in Los Angeles, California. Due to a recent industry-wide financial crisis, the CFO of Premium Beds fears a significant drop in the firm's upcoming income stream. The CFO asked you to use the company financial information provided below. Sales price per unit $ 3,000.00 Per-unit variable costs: Invoice cost 2,218.80 Sales commissions 281.20 Total per-unit variable costs $ 2,500.00 Total annual fixed costs: Advertising $ 236,000 Rent 178,000 Salaries 386,000 Total annual fixed costs $ 800,000 The annual breakeven point in dollars is: $4,800,000. $4,500,000. $4,100,000. $4,600,000. $4,300,000.
Complete the requirements <><>
Pharoah Industries manufactures chairs and tables that are in high demand by local office furniture stores. Following is information for each of these products: Selling price per item Variable cost per item Contribution margin per item Machine hours per item Chairs O $11270 $11520 $10880 O $17390 $78.00 61.00 $17.00 1.60 Tables $95.00 77.00 $18.00 1.60 Pharoah has 1024 machine hours available each month. The demand for chairs is 610 units per month and the demand for tables is 390 units per month. If Pharoah allocates its production capacity between the chairs and tables so that it maximizes the company's contribution margin, what will the total contribution margin be?
penninsula hardware buys cabinet doors for $24 less 39%, 10% and 4%. the store's overhead expenses are 34% of cost and the required profit is 14% of cost Find the cost= find the expense= find the profit= find the regular selling price=
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Sensational Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available: Line Item Description Iced Tea Soda Lemonade Sales price per unit $0.90 $0.60 $0.50 Variable cost per unit (0.30) (0.15) (0.10) Contribution margin per unit $0.60 $0.45 $0.40 Sensational is experiencing a bottleneck in one of its processes that affects each product as follows: Line Item Description Iced Tea Soda Lemonade Bottleneck process hours per unit 3 3 4 a. Using a theory of constraints (TOC) approach, rank the products in terms of profitability. Rank Product 1. 2. 3. b. What price for lemonade would equate its profitability (contribution margin per bottleneck hour) to that of soda? Round your answer to two decimal places.fill in the blank 1 of 1$
Richardson Ski Racing (RSR) sells equipment needed for downhill ski racing. One of RSR's products is fencing used on downhill courses. The fence product comes in 150-foot rolls and sells for $210 per roll. However, RSR offers quantity discounts. The following table shows the price per roll depending on order size: Quantity Ordered From To Price per Roll 1 75 $210 76 125 $185 126 225 $170 226 and up $145 The file RSR contains 172 orders that have arrived for the coming six weeks. (e) Use the VLOOKUP function with the preceding pricing table to determine the total revenue (in dollars) from these orders. $ (b) Use the COUNTIF function to determine the number of orders in each price bin. Quantity Ordered From To Price per Roll Number of Orders 3 75 $210 76 125 $185 126 225 $170 226 and up $145
Required information [The following information applies to the questions displayed below.] Iguana, Inc., manufactures bamboo picture frames that sell for $20 each. Each frame requires 4 linear feet of bamboo, which costs $1.50 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $12 per hour. Iguana has the following inventory policies: • Ending finished goods inventory should be 40 percent of next month's sales. • Ending direct materials inventory should be 30 percent of next month's production. Expected unit sales (frames) for the upcoming months follow: March April May June July August 360 420 470 570 545 595 Variable manufacturing overhead is incurred at a rate of $0.20 per unit produced. Annual fixed manufacturing overhead is estimated to be $7,200 ($600 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $650 per month plus $0.50 per unit sold. Iguana, Inc., had $10,800 cash on…
The Rosa model of Mohave Corporation is currently manufactured as a very plain umbrella with no decoration. The company is considering changing this product to a much more decorative model by adding a silk-screened design and embellishments. A summary of the expected costs and revenues for Mohave’s two options follows: Rosa Umbrella Decorated Umbrella Estimated demand 11,000 units 11,000 units Estimated sales price $ 9.00 $ 20.00 Estimated manufacturing cost per unit Direct materials $ 3.50 $ 5.50 Direct labor 1.50 4.00 Variable manufacturing overhead 0.50 2.50 Fixed manufacturing overhead 2.00 2.00 Unit manufacturing cost $ 7.50 $ 14.00 Additional development cost $ 11,000 Required: 1. Determine the increase or decrease in profit if Mohave sells the Rosa Umbrella with the additional decorations. 2. Should Mohave add decorations to the Rosa umbrella? 3-a.Suppose the higher price of the decorated umbrella is expected to…

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