Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost. Contribution margin Less: Fixed cost Net operating income Before Automation $ 194,000 104,000 $ 90,000 12,000 $ 78,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Required 1 Required 2 Complete this question by entering your answers in the tabs below. After Automation $ 194,000 51,000 $ 143,000 64,000 $ 79,000 DOL Before Automation DOL After Automation Compute Lobster Trap's degree of operating leverage before and after automation. Note: Round your answers to 4 decimal places. < Required 1 Required 2 >

Lobster Trap Company is considering automating its manufacturing facility. Company information before and after the proposed automation follows: Sales revenue Less: Variable cost. Contribution margin Less: Fixed cost Net operating income Before Automation $ 194,000 104,000 $ 90,000 12,000 $ 78,000 Required: 1. Calculate Lobster Trap's break-even sales dollars before and after automation. 2. Compute Lobster Trap's degree of operating leverage before and after automation. Required 1 Required 2 Complete this question by entering your answers in the tabs below. After Automation $ 194,000 51,000 $ 143,000 64,000 $ 79,000 DOL Before Automation DOL After Automation Compute Lobster Trap's degree of operating leverage before and after automation. Note: Round your answers to 4 decimal places. < Required 1 Required 2 >

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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PLEASE ANSWER QUESTION A, B & C. NOT PUT IN EXCEL Question 2 Jack Knife Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42000 speaker sets: Sales $3,360,000 Variable costs $840,000 Fixed costs $2,280,000 Management is considering relocating its manufacturing facilities to northern Cuba to reduce costs. Variable costs are expected to average $18 per set; annual fixed costs are anticipated to be $1,984,000. Required: A. Calculate the company’s current income and determine the level of dollar sales needed to double that (Assuming operations remain in Jamaica). B. Determine the break-even point in speaker sets if operations are shifted to Cuba. C. Using an excel sheet, prepare the breakeven chart if operations are shifted to Cuba
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+ Problem 1: Total and Per Unit Costing Hatter Buggies operates a dune buggy rental service. Consider the costs below of operating the company over a relevant range of 10,000 hours to 20,000 hours of operating time for its buggies. Required: Re-create this chart in Excel, and fill in the empty numerical cells. 10,000 15,000 20,000 Total Variable Cost $75,000 Total Fixed Costs 312,000 Total Cost $387,000 Variable Cost per Hour Fixed Cost per Hour Total Cost per Hour
Variable costs: Direct materials $0.15 Direct labor 0.06 Variable overhead 0.11 Fixed overhead 0.30 Total cost $0.62
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