ez Company's relevant range of prod its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense ndational 1-2 (Algo) is 7,500 units to 12,500 units. when it produces and sells 10,000 units, Average Cost Per Unit $ 6.70 $ 4.20 $ 1.40 $ 4.00 $ 3.70 $2.10 $ 1.10 $ 0.55

ez Company's relevant range of prod its average costs per unit are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense ndational 1-2 (Algo) is 7,500 units to 12,500 units. when it produces and sells 10,000 units, Average Cost Per Unit $ 6.70 $ 4.20 $ 1.40 $ 4.00 $ 3.70 $2.10 $ 1.10 $ 0.55

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Please answer in text form without image
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
Spartans Inc. has the following Standard Cost Card: per unit per year Price $21.00 Direct Materials $6.00 Direct Labor $1.80 Var. MOH $0.80 Fixed MOH $36,000 Selling $2.00 Administrative $60,000 1. What is the contribution margin per unit? $8.60, $2.99, $7.59, $10.60, or $4.99 2. What is the contribution margin ratio? 0.3672, 0.6328, 0.7800, 0.2200, or 0.4415 3. Based on your answer from (b), how much of every $1.00 of sales represents variable costs? 4. If direct labor costs increase by $1.00, how will that affect the contribution margin?
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 62.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 80.00 24.00 24.00 48.00 $ 32.00 Required 1 Required 2 40% Required 3 18.00 25.40 43.40 $18.60 30% с $81.00 The company estimates that it can sell 800 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,000 pounds available each month. 9.00 43.65 52.65 $28.35 Required: 1. Calculate the contribution margin per pound of the constraining resource for each product. 2. Which orders would you advise the company to accept first, those for A, B, or C? Which orders second? Third? 3. What is the maximum contribution margin that the company can earn per month if it makes optimal use of its 5,000 pounds of materials? 35% Complete this question by…
Lindstrom Company produces two fountain pen models. Information about its products follows: Product A Product B Sales revenue Less: Variable costs Contribution margin Total units sold Lindstrom's fixed costs total $86,500. Required: $ 76,600 41,400 $ 46,000 5,000 $ 123,400 52,800 $ 91,000 5,000 1. Determine Lindstrom's weighted-average unit contribution margin and weighted-average contribution margin ratio. 2. Calculate Lindstrom's break-even point in units and in sales revenue. 3. Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. 4. Calculate Lindstrom's margin of safety (in units and sales dollars) and margin of safety as a percentage of sales based on the sales data provided in the table above. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate the number of units that Lindstrom must sell to earn a $150,000 profit. Note: Do not round your intermediate calculations. Round your answer…
Kubin Company's relevant range of production is 15,000 to 19,000 units. When it produces and sells 17,000 units, its average costs per unit are as follows: Amount per Unit $ 7.60 $ 4.60 $ 2.10 $ 5.60 $ 4.10 $ 3.10 $ 1.60 $ 1.10 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Required: 1. If 15,000 units are produced and sold, what is the variable cost per unit produced and sold? 2. If 19,000 units are produced and sold, what is the variable cost per unit produced and sold? 3. If 15,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 4. If 19,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold? 5. If 15,000 units are produced, what is the average fixed manufacturing cost per unit produced? 6. If 19,000 units are produced,…
Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.55 $3.45 $1.45 $3.80 $1.40 $0.95 $1.35 $0.85 Sales commissions Variable administrative expense If 7,300 units are sold, the variable cost per unit sold is closest to:
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
Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Product B $ 70.00 Selling price Variable expenses: Direct materials Other variable expenses Total variable expenses Contribution margin Contribution margin ratio A $ 84.00 25.20 25.20 50.40 $ 33.60 40% Required 1 Required 2 Required 3 21.00 31.50 52.50 $ 17.50 25% с $ 74.00 The company estimates that it can sell 750 units of each product per month. The same raw material is used in each product. The material costs $3 per pound with a maximum of 5,400 pounds available each month. Contribution margin per pound of the constraining resource Product C
Haresh
Hh