Executives at Studio Recordings, Inc. produced the latest compact disc the Starshine Sisters Band,titled Sunshine/Moonshine. The following cost information pertains to the new CD.CD package and disc (direct materials and labor)Songwriters' royaltiesRecording artists' royaltiesAdvertising and promotionStudio Recordings, Inc.'s overheadSelling price to CD distributorCalculate the following if the selling price is cut by 5%:f) Break-even volume in CD unitsg) Break-even volume in dollarsh) Necessary CD volume to achieve $200,000 profit,$1.25/CD$0.35/CD$1.00/CD$275,000$250,000$9.00

Break Even Point :— Break Even Point is a Point of Sale where no Profit No loss. Break Even Point in…

Answered: Executives at Studio Recordings, Inc.…

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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Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $40,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: VasesFigurinesPrice$40$70Variable cost3042Contribution margin$10$28Number of units1,000500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break-even vasesfill in the blank 1 unitsBreak-even figurinesfill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5,260 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 1,500, and figurine sales will increase to 1,000 units. What is the new break-even point in…
Costs are $28 per unit, which consists of $8 direct materials per unit, $10 direct labor per unit, $4 variable overhead per unit, and $6 fixed overhead per unit. Regular selling price is $40 per unit. Sales are low because of a recession. A large retail chain offered to buy 1,000 units from you at a discounted price of $28. Assume that you have enough spare capacity to fulfill this order. If you accept the special order in the short term, profit will O increase by $6,000 decrease by $12,000 decrease by $6,000 remain the same increase by $12,000
Laser Cast Inc. manufactures color laser printers. Model J20 presently sells for $325 and has a product cost of $260, as follows: Line Item Description Amount Direct materials $190 Direct labor 50 Factory overhead 20 Total $260 It is estimated that the competitive selling price for color laser printers of this type will drop to $310 next year. Laser Cast has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas: 1. Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.2. Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $7 per unit.3. Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 45% of the factory overhead are related to running injection…
Baird Trophies makes and sells trophies it distributes to little league ballplayers. The company normally produces and sells between 9,000 and 15,000 trophies per year. The following cost data apply to various activity levels:
PLease ASAP. and show calculations!! Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $38, 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break - even vases fill in the blank 1 units Break - even figurines fill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5, 280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break -…
Extreme Sports sells logo sports merchandise. The company is contemplating whether or not to continue its custom embroidery service. All of the company's direct fixed costs can be avoided if a segment is dropped. The information is available for the segments. Custom Logo Embroidery Apparel Sales $59,000 $250,000 Variable costs 30,000 109,000 Contribution margin $29,000 $141,000 Direct fixed costs 22,000 39,000 Allocated common fixed costs 12,000 50,000 Net income $(5,000) $52,000 A. What will be the impact on net income if the embroidery segment is dropped? Net income $ Decrease B. Assume that if the embroidery segment is dropped, apparel sales will increase 10%. What is the impact on the contribution margin and net income solely for the apparel? Contribution margin $ Increase Net income Increase C. Identify one cost that is not relevant in this analysis. Common fixed costs
Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Helix Company is approached by a new customer to provide 1,800 units of its product at a special price of $9 per unit. The normal selling price of the product is $11 per unit. Helix is operating at 80% of its capacity of 11,500 units. No incremental fixed overhead will be incurred because of this order. Also, there will be no incremental fixed general and administrative costs because of this order. QS 23-2 (Algo) Special offer LO P7 a. Special selling price of $9.00 per unit b. Direct materials of $2.00 per unit c. Direct labor of $3.00 per unit d. Variable overhead of $2.50 per unit e. Fixed overhead of $.75 per unit f. Fixed general and administrative costs of $.60 per unit Based on income, should Helix accept this new customer order at the special price? Sales Variable costs SPECIAL OFFER ANALYSIS Direct materials Direct labor Variable overhead…
Required: Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.18 and estimates its variable cost to be $0.16 per hanger. Laguna's total fixed cost is $2,260 per month, which consists primarily of printer depreciation and rent. Calculate the number of advertising hangers that Laguna must sell in order to break even. Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number. Break-even Hangers

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