II. Financial information of a product manufactured and sold during last periods are as follows: Unit sale price: $130 Direct Material Cost $40 Direct Labor Cost $22 Fixed Administration Expenses $50,000 Fixed Marketing Expenses $18,000 Manufacturing Overheads for the last three periods are accrued as follows: $60,000 by 3,000 pieces of production, $68,000 by 3,200 pieces of production, ? $70,000 by 4,000 pieces of production. For the current period it is expected to produce and sell 3,200 pieces. 1. Compute the breakeven points of the current period on quantity and amount, 2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period. 3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?
II. Financial information of a product manufactured and sold during last periods are as follows: Unit sale price: $130 Direct Material Cost $40 Direct Labor Cost $22 Fixed Administration Expenses $50,000 Fixed Marketing Expenses $18,000 Manufacturing Overheads for the last three periods are accrued as follows: $60,000 by 3,000 pieces of production, $68,000 by 3,200 pieces of production, ? $70,000 by 4,000 pieces of production. For the current period it is expected to produce and sell 3,200 pieces. 1. Compute the breakeven points of the current period on quantity and amount, 2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the period. 3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
am. 129.
Transcribed Image Text:II. Financial information of a product manufactured and sold during last periods are as follows: Unit sale price: $130 Direct Material Cost $40 Direct Labor Cost $22 Fixed
Administration Expenses $50,000 Fixed Marketing Expenses $18,000 Manufacturing Overheads for the last three periods are accrued as follows: $60,000 by 3,000 pieces
of production, $68,000 by 3,200 pieces of production, ? $70,000 by 4,000 pieces of production. For the current period it is expected to produce and sell 3,200 pieces. 1.
Compute the breakeven points of the current period on quantity and amount, 2. Prepare the Full Costing Income Statement and Variable Costing Income Statement of the
period. 3. A proposition of the marketing manager concerns about a 10% discount in the sale price which is expected an increase in the sales 20%, it is acceptable or not?
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