Exercises 4Event Company produces a single product with the followingcharacteristics: price per unit, $30.00; variable material cost perunit, $9.20; variable labor cost per unit, $4.40; variable overheadcost per unit, $2.20; and fixed overhead cost per unit, $3.00.Event Company's manufacturing fixed costs are $5 million, andselling, general, and administration fixed costs are $1.5 million.What dollar sales are required for Event Company to earn atarget profit of $600,000?Exercises 5The following information pertains to Torasic Company'sbudgeted income statement for the month of June:Sales (1,500 units at $300) $450,000Variable cost200,000250,000280,000$(30,000)Contribution marginFixed costNet lossRequireda) Determine the company's breakeven point in both units anddollars.b) The sales manager believes that a $25,000 increase in themonthly advertising expenses will result in a considerableincrease in sales. How much of an increase in sales mustresult from increased advertising in order to break even onthe additional monthly expenditure?c) The sales manager believes that an advertising expenditureincrease of $25,000 coupled with a 12% reduction in theselling price will double the sales quantity. Determine thenet income (or loss) if the company adopts these proposedchanges.

Lets understand the basics.For calculating target profit, we need to use below formula.Targeted…

Answered: Exercises 4 Event Company produces a…

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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Current Attempt in Progress Bridgeport, Inc. manufactures and sells two products, Standard and Deluxe. Relevant per unit data for each product are given below: Selling price Variable costs Machine hours (a) Product Standard $44 $22 2 Deluxe Contribution margin per unit of limited resource $75 $30 3 Compute the contribution margin per unit of limited resource for each product. $ Standard Product Deluxe
The following information is for Alex Corp: Product X: Revenue Variable Cost Product Y: Revenue Variable Cost Total fixed costs $12.00 $4.50 $25.00 $10.00 $40,500 What is the operating income, assuming actual sales total 120,000 units, and the sales mix is two units of Product X and one unit of Product Y? 1,960,000 1,240,500 1,200,000 1,159,500
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Question Content Area Moon Company uses the variable cost method of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 75,000 units of Product T are as follows: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead 1.50 Selling and administrative expenses 3.00 Total $15.00 Fixed costs: Line Item Description Amount Factory overhead $45,000 Selling and administrative expenses 20,000 Moon desires a profit equal to an 18% return on invested assets of $1,440,000. c. Determine the markup percentage for Product T. Round your answer to one decimal place.fill in the blank 1 of 1%
Kesterson Corporation has provided the following information: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Multiple Choice ( $15.15 Variable administrative expense Fixed selling and administrative expense The incremental manufacturing cost that the company will incur if it increases production from 10,000 to 10,001 units is closest to: $16.45 Cost per Unit $6.70 $ 3.30 $ 1.65 $13.95 $ 1.20 $ 0.80 Cost per Period $ 23,000 $ 5,000 Hel
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $99 per unit, and fixed manufacturing costs are $215,600. Sales are estimated to be 7,700 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,700 units ard a plan to produce 9,800 units? b. How much would variable costing operating income differ between the two production plans? 0 Feedback Check My Work a. Remember that under variable costing, regardless of whether 7,700 units or 9,800 units are manufactured, no fixed manufacturing costs are allocated to the units manufactured. Instead, all fixed manufacturing costs are treated as a period expense. Therefore the change in units times the per unit fixed costs for the greater production level is the difference in income between the two costing methods. b. Remember that since all…
Assume a company makes only three products, A, B, and C. Product A Product B Product C Estimated customer demand in units Selling price per unit 800 700 $ 80 $ 45 Variable cost per unit $ 35 $ 20 Machine-hours per unit 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice O O $52.800 $59,800 $55,000 $57,800 600 $ 65 $ 26 3.0
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