Kengen Corporation uses trucks to transport bottles from the warehouse to different retall outlets Gasoline costs are 50. 14 per kilometre divent Insurancecosts are $2.000 per year. Calculate the total costs and the cost per kilometre for gasoline and insurance if the truck is driven (a) 15,000 kilometres per yearor (b) 32.000 kilometres per year.Complete the table below (Round the costs per kilometre to the nearest cont, EX XX.)(a) Driven 15,000 kilometres(b) Driven 32.000 kilometresTotal costsCost per kilometre

Total Fixed cost is same it doesn't change with change in units Variable Cost change with change in…

Answered: Kengen Corporation uses trucks to…

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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Bramble Corp. manufactures and sells solar chargers for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How hany solar chargers must Bramble sell to earn a net income of $300000? O 10000. O 14000. O 18000. O 16000.
Suppose that Lou sells 9,000 wheels each month to outside customers. If the transfer pricing formula is used to find the transfer price, what is the appropriate price per wheel? A. P29.50 B. P31.75 C. P39.25 D. P42.00
Bonita Industries produces small lightweight camping trailers with rear kitchen facilities. The company's fixed costs are $830000 per year and its variable costs are 60% of the unit selling price of $16000. How many campers must the company sell to earn a net income of $194000? O 107 O 160 O 138 O 130
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Luxury Motors has 7,400 defective autos on hand, which cost $13,616,000 to manufacture, Luxury can either sell these defective autos as scrap for $8,400 per auto, or spend an additional $18,720,000 on repairs and then sell them for $12,400 per unit. What is the net advantage to repair the autos compared to selling them for scrap? Multiple Choice $62,160,000 $10,880,000 $91,760,000 $18,720,000
A car manufacturing company analyzes the possibility of manufacturing the gas cap of their cars. Currently, the company buys at $8 each stopper to a supplier. The manufacture of such a stopper would imply that the company will buy a machine whose cost would be $3,300,000 and salvage value after 5 years of use would be $100,000. Also, to operate and maintain this machinery, the company incurred annual fixed costs of $500,000 and variable costs of $5/cap. If the company needs 500,000 caps a year and The Trema that applies is 15% per year, what decision would be more profitable for the company: continue to buy gas caps or manufacture them? Solve the problem using the IRR criterion.
Wild-Water Works Water Park provides for a fun day by offering a variety of rides. Wild-Water Works Water Park sells tickets at $69 per person as a one-day entrance fee. Variable costs per person are $24 and a fixed cost amount to $236,300 per month. (Round your answers to two decimal places when needed and use rounded answers for all future calculations). 1. Compute the new contribution margin per unit and the contribution margin ratio if Wild-Water Works Water Park cuts it ticket price to $40 per person. Net Sales revenue per unit Contribution margin / Net sales revenue = Contribution margin ratio (%) (Fixed Costs 2. Find the break-even point in units and in dollars using the contribution margin approach. (Reminder to write answer in whole units). + Variable costs per unit = Unit Contribution margin (Fixed Costs + Target Profit) / (Contribution Margin per unit) + + Target Profit) 1 = = 1 / (Contribution Margin ratio %) = = Required Sales in Units Required Sales in Dollars
Hartley Auto Supply delivers parts to a rea autoservice centers and is replacing its fleet of delivery vehicles. Whatis the total vehicle life cycle cost of this gasoline engine truckgiven the information provided in the following table?
Sandy Bank, Incorporated, makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $560 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 760 canoes for $560 each. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. Sandy Bank sells its canoes for $560 each. 5. Suppose Sandy Bank wants to earn $72,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Sandy Bank sells its canoes for $560 each. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the following table. Note: Round your "Cost per Unit" answers to 2 decimal places. Number of Canoes Produced and Sold Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Required 3 Required 4…
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $40 per unit. Variable expenses are $20.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales Variable expenses Contribution margin Fixed expenses $ 1,040,000 520,000 520,000 160,000 Net operating income 360,000 Required: Answer each question independently based on the original data: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in dollar sales. 3. Assume this year's unit sales and total sales increase by 48,000 units and $1,920,000, respectively. If the fixed expenses do not change, how much will net operating income increase? 4-a. What is the degree of operating leverage based on last year's sales? 4-b. Assume the president expects this year's unit sales to increase by 14%. Using the degree of operating leverage from last year, what percentage increase in net operating income will the company realize…
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Sandy Bank, Inc., makes one model of wooden canoe. Partial information is given below. Required: 1. Complete the following table. 2. Suppose Sandy Bank sells its canoes for $580 each. Calculate the contribution margin per canoe and the contribution margin ratio. 3. This year Sandy Bank expects to sell 800 canoes. Prepare a contribution margin income statement for the company. 4. Calculate Sandy Bank's break-even point in units and in sales dollars. 5. Suppose Sandy Bank wants to earn $66,000 profit this year. Calculate the number of canoes that must be sold to achieve this target. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Required 5 Complete the following table. (Round your "Cost per Unit" answers to 2 decimal places.) Number of Canoes Produced and Sold 610 Total costs Variable Costs Fixed Costs Total Costs Cost per Unit Variable Cost per Unit Fixed Cost per Unit Total Cost per Unit $ $ $ 410 Required 1 59,450 139,400…

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