E8.5 (LO 2), AP Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 500,000 units. Per Unit $7 11 15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $28,000,000. Instructions a. Compute the total unit cost. b. Compute the desired ROI per unit. c. Compute the markup percentage using total unit cost. d. Compute the target selling price. 14 Total $3,000,000 1,500,000

E8.5 (LO 2), AP Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 500,000 units. Per Unit $7 11 15 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses The company has a desired ROI of 25%. It has invested assets of $28,000,000. Instructions a. Compute the total unit cost. b. Compute the desired ROI per unit. c. Compute the markup percentage using total unit cost. d. Compute the target selling price. 14 Total $3,000,000 1,500,000

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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19) Alpha has a plant capacity of 200,000 units per month. Unit costs at capacity are: Direct materials $4.00 6.00 3.00 Direct labor Variable overhead Fixed overhead Marketing fixed 1.00 7.00 Marketing/distribution-variable 3.60 Current monthly sales are 190,000 units at $30.00 each. Q, Inc., has contacted Alpha about purchasing 2,000 units at $24.00 each. Current sales would not be affected by the one-time-only special order. What is Alpha's change in operating profits if the one-time-only special order is accepted?
A10
Kk.244.
15. Dauntless Company has an annual plant capacity of 13,000 product units. Predicted operations for the year are summarized: Sales (10,000 units) Manufacturing costs: fixed Variable Selling and administrative expenses : Fixed $840,000 $330,000 $64 per unit $90,000 Variable (advertising) $10 per unit If the company accepts a special order from a customer for 1,000 units at a selling price of $78, there will be no effect at all on regular sales at regular prices. No advertising expense will be required for the special order, but a special promotion cost of $18,000 will be required. Compute the total amount of the increase or decrease in the company's budgeted operating income that would be caused by the acceptance of this order. a. increase of 4,000 b. decrease of 6,000 c. decrease of 4,000 d. increase of 6,000 e. None of the above
2. An audio equipment manufacturer produced and sold 725 sound systems and made a net income of $50, 000 last year, with a total revenue of $1, 015, 000. The manufacturer's break-even volume is 600 units. a. Calculate the selling price of each sound system. b. Calculate the variable costs for each sound system. c. Calculate the fixed costs per year.
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Schopp Corporation makes a mechanical stuffed alligator that sings the Martian national anthem. The following information is available for Schopp Corporation's anticipated annual volume of 501,000 units. Per Unit $8 $13 $16 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses $13 Fixed selling and administrative expenses Total $3,507,000 Absorption-cost pricing markup percentage $1,503,000 The company has a desired ROI of 25%, It has invested assets of $30,060,000, Using absorption-cost pricing, compute the markup percentage. (Round answer to 2 decimal places, e.g. 10.50%.) %
This year, Lambert Company will ship 1,500,000 pounds of goods to customers ata cost of $1,200,000. If a customer orders 10,000 pounds and produces $200,000 ofrevenue (total revenue is $20 million), the amount of shipping cost assigned to thecustomer by using ABC would bea. unable to be determined.b. $8,000 ($0.80 per pound shipped).c. $24,000 (2% of the shipping cost).d. $12,000 (1% of the shipping cost).e. None of these.
Am. 112.
Am. 112.
Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Variablecost is 35% of the sales price; contribution margin is 65% of the sales price. Total fixed costequals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required:1. Calculate the sales revenue that Chillmax must make to earn operating income of $81,900by using the point in sales equation.2. Check your answer by preparing a contribution margin income statement based on thesales dollars calculated in Requirement 1.Brief Exercise 7-30 Break-Even Point in U
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