Jaybird Company operates in a highly competitive market where the market price for its praduct is SM5 per unit. Jaybird desires a 30% profit per unit Joybird expects to sell 5,000 units. Additional information is as follows Varlable Costs per init Fixed Costs (total) Direct materials $ 24 Overhead $ 45,006 Direct labor 25 General and adeinisteative 18,aae Overhead 23 General and administrative 29 To achieve the terget cost per unit, Jaybird must reduce total expenses by how much? Mutipie Choice $62.000 $51000 $70.500 S07,500 $60.500 O OO OO

Jaybird Company operates in a highly competitive market where the market price for its praduct is SM5 per unit. Jaybird desires a 30% profit per unit Joybird expects to sell 5,000 units. Additional information is as follows Varlable Costs per init Fixed Costs (total) Direct materials $ 24 Overhead $ 45,006 Direct labor 25 General and adeinisteative 18,aae Overhead 23 General and administrative 29 To achieve the terget cost per unit, Jaybird must reduce total expenses by how much? Mutipie Choice $62.000 $51000 $70.500 S07,500 $60.500 O OO OO

Name: Jaybird Company operates in a highly competitive market where the mar
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Description: Jaybird Company operates in a highly competitive market where the market price for its product is $145 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows:Varlable Costs per tini

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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Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 5,700 6,800 3,900 8,100 27,200 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.90 each. Required a. Calculate the total relevant cost. Should Jordan continue to make the containers? b. Jordan could lease the space it currently uses in the manufacturing process. If leasing would produce $12.300 per rhonth, calculate the total avoidable costs. Should Jordan continue to make the containers? a. Total relevant cost Should Jordan continue to make the containers? b. Total avoidable cost Should Jordan continue to make the containers?
Polaski Company manufactures and sells a single product called a Ret. Operating at capacity, the company can produce and sell 34,000 Rets per year. Costs associated with this level of production and sales are given below: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense Total cost Unit $15 6 IN MING 3 1. 2. 3. 5 Financial advantage Financial (disadvantage) 2 6 $ 37 Total $ 510,000 204,000 The Rets normally sell for $42 each. Fixed manufacturing overhead is $170,000 per year within the range of 24,000 through 34,000 Rets per year. 102,000 170,000 68,000 204,000 $ 1,258,000 Required: 1. Assume that due to a recession, Polaski Company expects to sell only 24,000 Rets through regular channels next year. A large retail chain has offered to purchase 10,000 Rets if Polaski is willing to accept a 16% discount off the regular price. There would be no sales commissions on this order; thus, variable selling…
Skull Company makes snowboards and uses the total cost method in setting product price. Its costs for producing 19,500 units follow. The company targets a 10.0% markup on total cost. Variable Costs per Unit Direct materials Direct labor Overhead Selling, general and administrative Fixed Costs (total) Overhead Selling, general and administrative $ 119 44 39 8 1. Total cost per unit 2. Markup per unit 3. Selling price per unit $ 480,000 456,000 1. Compute the total cost per unit if 19,500 units are produced. 2. Compute the dollar markup per unit. 3. Compute the selling price per unit. (For all requirements, round your final answers to the nearest dollar amounts.)
Galla Incorporated needs to determine a price for a new product. Galla desires a 25% markup on the total cost of the product. Galla expects to sell 5,000 units. Additional information is as follows: Fixed Costs (total) Variable Costs per Unit Direct materials Direct labor $ 21 Overhead 22 General and administrative 20 26 Overhead General and administrative Using the total cost method what price should Galla charge? $ 45,000 18,000
Jarvis Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 35,000 units of Product E are as follows: Variable costs: Direct materials $3.00 Direct labor 1.25 Factory overhead 0.75 Selling and administrative expenses 3.00 Total $8.00 Fixed costs: Factory overhead $50,000 Selling and administrative expenses 20,000 Jarvis desires a profit equal to a 14% rate of return on invested assets of $450,000. a. Determine the amount of desired profit from the production and sale of Product E. $ 63,000 b. Determine the total costs and the cost amount per unit for the production and sale of 35,000 units of Product E. Total manufacturing costs 350,000 V Cost amount per unit 10 c. Determine the markup percentage for Product E. 18 V % d. Determine the selling price of Product E. Round your answer to two decimal places.
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Phone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,490 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $201,800 Direct labor 39 Selling and admin. exp. 69,700 Factory overhead 22 Selling and admin. exp. 19 Total variable cost per unit $170 per unit Phone desires a profit equal to a 14% rate of return on invested assets of $598,700. Determine the amount of desired profit from the production and sale of 5,490 units of cell phones. $____ Determine the product cost per unit for the production of 5,490 of cell phones. If required, round your answer to nearest dollar. $______ per unit Determine the product cost markup percentage (rounded to two decimal places) for cell phones. _______…
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Rooney Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* $ 5,200 6,500 3,600 9,300 26,600 Allocated facility-level costs *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rooney for $2.70 each. Required a. Calculate the total relevant cost. Should Rooney continue to make the containers? b. Rooney could lease the space it currently uses in the manufacturing process. If leasing would produce $11,500 per month, calculate the total avoidable costs. Should Rooney continue to make the containers? a. Total relevant cost Should Rooney continue to make the containers? b. Total avoidable cost Should Rooney continue to make the containers?
Jaybird Company operates in a highly competitive market where the market price for its product is $145 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Fixed Costs (total) Direct materials S 24 Overhead $ 45,000 Direct labor 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? Multiple Choice $ 62,000 $51,000 $70, 500 $67,500 $60, 500
Thornton Electronics currently produces the shipping containers It uses to deliver the electronics products It sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 5,100 6,400 3,300 9,900 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Thornton for $2.60 each. Required a. Calculate the total relevant cost. Should Thornton continue to make the containers? b. Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $12,100 per month, calculate the total avoidable costs. Should Thornton continue to make the containers? a. Total relevant cost a. Should Thornton continue to make the containers? b. Total avoidable cost b. Should Thornton continue to make the containers?