I want to answer this question Doc Rowan Corporation sells one product, its waterproofhiking boot. It began operations in the current year and had anending inventory of 8,500 units. The company sold 20,000units throughout the year. Fixed manufacturing overhead is $5per unit, and total manufacturing cost per unit is $20(including fixed manufacturing overhead costs). What is thedifference in net income between absorption and variablecosting?

Step 1: Introduction to the Absorption And Variable CostingOne of the key differences between…

Answered: Doc Rowan Corporation sells one…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 8EA: Using the information in the previous exercises about Marleys Manufacturing, determine the operating...

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
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Last year Minden Company introduced a new product and sold 38,900 units of it at a price of 598 per unit. The product's variable expenses are $68 per unit and its fixed expenses are $839,400 per year. Required: 1. What was this product's net operating income (loss) last year?
A company produces and sells a product. The unit variable cost is $42.44 and the unit selling price is $88.20. The fixed cost associated with the product is $149,856 per year. The company has an income tax rate of 25.19 percent. The company must produce and sell units per year in order to reach breakeven.
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The Waldron Company produces a single product for sale. Based on current accounting records, the company's unit sales price is $35, unit variable expense is $17 and monthly fixed costs are $44,237. How many units do they need to sell to make $126,444 in profit? Round your units UP to the nearest whole number
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Fine Leather Enterprises sells its single product for $129.00 per unit. The firm’s fixed operating costs are $473,000 annually, and its variable operating costs are $86.00 per unit. a. Find the firm’s operating break-even point in units. b. Label the x-axis “Sales (units)” and the y-axis “Costs/Revenues ($),” and then graph the firm’s sales revenue, total operating cost, and fixed operating cost functions on these axes. In addition, label the operating break-even point and the areas of loss and profit (EBIT).
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Mauro Products distributes a single product, a woven basket whose selling price is $21 per unit and whose variable expense is $17 per unit. The company's monthly fixed expense is $9,600. Required: 1. Calculate the company's break-even point in unit sales. 2. Calculate the company's break-even point in dollar sales. (Do not round intermediate calculations.) 3. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? In dollar sales? (Do not round intermediate calculations.) 1. Break-even point in unit sales 2. Break-even point in dollar sales 3. Break-even point in unit sales 3. Break-even point in dollar sales 2,400 baskets baskets
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