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Bertha Corporation reports that at an activity level of 4,000 units, its total variable cost is $616,750 and its total fixed cost is $353,286.
For the activity level of 4,800 units, i.e., 800 units more, (assuming that this activity level is within the relevant range), compute the total cost at that level. Show your work. Round your answer to the nearest dollar.
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- Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is $51, unit variable cost is $31, and total fixed costs are $685,000, the number of units that the company must sell to earn its target net income isManjiRitchie manufacturing company makes a product that it sells for $170 per unit. The company incurs variable manufacturing costs of $86 per unit variable selling expenses are 416 per unit, annual fixed manufacturing costs are $458,000, and fixed selling and administrative costs are $242,400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a) use the equation method b) use the contribution margin per unit approach c) prepare a contribution margin income statement for the break-even sales volume.
- Suppose a company has fixed costs of $47,600 and variable cost per unit of ². +222 dollars, where x is the total number of dollars per unit. units produced. Suppose further that the selling price of its product is 1656- (a) Find the break-even points. (Enter your answers as a comma-separated list.) x= (b) Find the maximum revenue. (Round your answer to the nearest cent.) $ (c) Form the profit function P(x) from the cost and revenue functions. P(x) Find maximum profit. (d) What price will maximize the profit? (Round your answer to the nearest cent.)Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $ 480,000, and fixed selling and administrative costs are $240, 000 per year. Required: Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Confirm your results by preparing a contribution margin income statement in excel for the break - even sales volume.Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.
- A firm manufactures a product that sells for $25 per unit. Variable cost per unit is $2 and fixed cost per period is $1840. Capacity per period is 2000 units. (a) Develop an algebraic statement for the revenue function and the cost function. (b) Determine the number of units required to be sold to break even. (c) Compute the break-even point as a percent of capacity. (d) Compute the break-even point in sales dollars.Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation Variable cost of each window installation Annual fixed costs $ $ $ 160,000 Use (a) the equation method and (b) the contribution method to calculate operating income if Best installs 4,000 windows. Use (a) the Equation method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the equation method. Then, calculate the operating income. (Abbreviation used: FC = Fixed costs, SP = Selling price, VCU = Variable cost per unit, Q = Quantity of units sold.) X X )-( )-( X X 700 600 X = Operating income = Next, use (b) the contribution method to calculate operating income if Best installs 4,000 windows. Begin by determining the formula to calculate the operating income using the contribution method. Then, calculate the operating income. = Operating incomeThe Mariachi Company prepared the following contribution format income statement based on a sales volume of 1,200 units (the relevant range of production is 500 units to 2,000 units): Sales 26,400 Variable expenses 18,000 Contribution margin 8,400 Fixed expenses 6,200 Net operating income 2,200 If the selling price increases by $2 per unit and the sales volume decreases by 100 units, what would be the net operating income?
- Willie Company sells 30,000 units at $29 per unit. Variable costs are $20.30 per unit, and fixed costs are $138,300. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.Harry Company sells 15,000 units at $44 per unit. Variable costs are $30.36 per unit, and fixed costs are $63,400. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales $ 50,000 Variable expenses 27,500 Contribution margin 22,500 Fixed expenses 14,850 Net operating income $ 7,650 Required: 1. What is the contribution margin per unit? (Round your answer to 2 decimal places.)
