Please given answer Accounting question Last year, Blake's income under absorption costing was $4,400lower than its income under variable costing. The company sold11,000 units during the year, and its variable costs were $11 per unit,of which $2 variable selling expense. If production cost was $13 perunit under absorption costing, then how many units did thecompany produce during the year?

Step 1: Define Absorption CostingAbsorption Costing is a costing method accepted in the Generally…

Answered: Last year, Blake's income under…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 8EB: Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000...

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Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
The sales price per unit is 13 for the Voyageur Companys only product. The variable cost per unit is 5. In 2016, the company sold 80,000 units, which was 10,000 units above the break-even point. Compute the following: 1. Total fixed expenses. (Hint: First compute the contribution margin per unit.) 2. Total variable expense at the break-even volume.
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Suppose that a company has fixed costs of $11 per unit and variable costs $6 per unit when 11,000 units are produced. What are the fixed costs per unit when 20,000 units are produced?
In 2012, Grant Co. sold 160,000 units of its product at a selling price of $40. The variable cost per unit was $30, and Grant reported net income for the year of $200,000. What was the amount of Grant's fixed costs for the year?
Gale Company's income under absorption costing was Php120,000 lower than its income under variable costing. The company sold 22,400 units during the year, and its variable costs were php210 per unit, Php24 of which represents the variable selling expenses. Production cost was Php250 per unit under absorption costing. How many units did the company produce during the year?
Last month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses were P120,000, and fixed costs were P65,000. Required: a. What is the company’s contribution margin (CM) ratio? b. Estimate the change in the company’s net operating income if it were to increase its total sales by P8,000.
Khaling Company sold 27,150 units last year at $15.60 each. Variable cost was $11.40, and total fixed cost was $118,020. Required: 1. Prepare an income statement for Khaling for last year. 2. Calculate the break-even point in units. 3. Calculate the units that Khaling must sell to earn operating income of $10,080 this year.
The Sizemore Company recently sold 2,500 units for $100 each; reported total variable costs of $162,500 and a net income of $47,500. If the company's price per unit increased by $5 and its volume decreased by 250 units, what would be the company's net income?
Sooner Industries charges a price of $88 and has fixed cost of $301,000. Next year, Sooner expects to sell 15,600 units and make operating income of $172,000. What is the variable cost per unit? What is the contribution margin ratio? Note: Round your variable cost per unit answer to the nearest cent. Enter the contribution margin ratio as a percentage, rounded to two decimal places.
During 20Y5, Jackson Computer Supply produced income from operations of $95,000 from sales of 80,000 units at $2.50 each. The company's fixed costs totaled $22,000. If the company has a 4,000 increase in sales units in the upcoming year, what will income from operations be for 20Y6? Assume that fixed costs and the selling price and variable cost per unit will remain the same.

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