Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 10,000 copies and paid a total of $690 in January. In April, they paid $450 for 6,000 copies. What is the variable cost per copy if Markson uses the high- low method to analyze costs? If required, round your answer to two decimal places. Variable cost $ per copy
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- Radar Company sells bikes for $490 each. The company currently sells 4,100 bikes per year and could make as many as 4,470 bikes per year. The bikes cost $235 each to make: $175 in variable costs per bike and $60 of fixed costs per bíke. Radar received an offer from a potential customer who wants to buy 370 bikes for $460 each. Incremental fixed costs to make this order are $42,000. No other costs will change if this order is accepted. Compute Radar's additional income (ignore taxes) if it accepts this order. Incremental Income from New Business Incremental Incremental Amount per Unit Fixed Costs Contribution margin Incremental income (loss) from new business The company shouldRadar Company sells bikes for $520 each. The company currently sells 4,350 bikes per year and could make as many as 4,690 bikes per year. The bikes cost $270 each to make: $160 in variable costs per bike and $110 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $500 each. Incremental fixed costs to make this order are $70 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis Contribution margin Income: (b) The company should Per Unit 0 TotalPreston products produces a disinfecting liquid. The liquid is sold in one gallon containers and has the following price and cost characteristics. Sales Price: $36.00 per gallon Variable costs: $12.00 per gallon Fixed costs: 504,000 per month Preston products is subject to an income tax rate of 21 percent. a. How many gallons must Preston products sell every month to break even? b. How many gallons must Preston products sell to earn a monthly operating profit of $75,840 after taxes?
- Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $13.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $11.40. The annual fixed cost for GGN is $15,120. Required: How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. The owner of GGN believes that the company can sell 12,600 chains a year. What is the margin of safety in terms of the number of chains?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?Garcia Co. sells snowboards. Each snowboard requires direct materials of $100, direct labor of $30, and variable overhead of $45. The company expects fixed overhead costs of $635,000 and fixed selling and administrative costs of $115,000 for the next year. It expects to produce and sell 10,000 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost?
- Golden Gate Novelties (GGN) sells souvenir key chains at the local airport. GGN charges $12.00 per chain. The variable cost for a chain, including the wholesale cost of the chain, packaging, the commission paid to the airport operator, and so on, is $10.40. The annual fixed cost for GGN is $15,000. Required: a. How many cases must Golden Gate Novelties sell every year to break even? Note: Do not round intermediate calculations. b. The owner of GGN believes that the company can sell 12,500 chains a year. What is the margin of safety in terms of the number of chains? a. Break-even point b. Margin of safety chains chainsRadar Company sells bikes for $490 each. The company currently sells 4,150 bikes per year and could make as many as 4,490 bikes per year. The bikes cost $300 each to make: $175 in variable costs per bike and $125 of fixed costs per bike. Radar receives an offer from a potential customer who wants to buy 340 bikes for $470 each. Incremental fixed costs to make this order are $60 per bike. No other costs will change if this order is accepted. (a) Compute the income for the special offer. (b) Should Radar accept this offer? (a) Special offer analysis Per Unit Total Contribution margin Income (b) The company shouldGustavo Fring approached Walt & Jessie Pharmaceutical Co. to buy 50 pounds of product for $50,000 a pound. Regular customers are charged $84,000 for a pound of product. Walt and Jessie Pharmaceutical Co. has the capacity to make 1000 pounds of product per month. The following costs are associated with the company's normal monthly production of the sale of 970 pounds of product: Direct Material per Pound of Product $9,000 Direct Labor per Pound of Product $2,000 Variable MOH per Pound of Product $3,000 Fixed MOH per Pound of Product $3,000 What is the minimum price Walt and Jessie Pharmaceutical Co. would be willing to accept per pound of product for the order? Round your answer to the nearest dollar. Hint: You can solve this problem using the formula for minimum transfer price. Transfer price >= incremental variable costs per unit + (Sacrificed regular contribution margin/ # units transferred) Minimum price = incremental variable costs per unit + ((# units…
- 1. Using the High-Low method, predict the cost of producing 900 treats. Enter your answer rounded to the nearest whole number without a dollar sign or comma (i.e., 1250) 2. ABC Company leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. ABC made 9,000 copies and paid a total of $ 473 in January. In April, they paid $ 287 for 5,000 copies. What is the variable cost per copy if ABC uses the high-low method to analyze costs? Enter your answer with two decimals (i.e., .xx)Gardendale Associates offers landscape consultations, where they provide design advice and plans to residential customers. A single consultation is priced at $750.00. The variable costs of a consultation total $330.00 consisting mostly of labor and supplies. Annual fixed costs are $102,900. Gardendale Associates is subject to an Income tax rate of 24 percent. Required: a. What total revenue does Gardendale have to generate from selling consultations to break even? b. What total revenue does Gardendale have to generate from selling consultations to earn an annual operating profit of $106,400 after taxes? Break-even revenue Required revenueRequired: Laguna Print makes advertising hangers that are placed on doorknobs. It charges $0.18 and estimates its variable cost to be $0.16 per hanger. Laguna's total fixed cost is $2,260 per month, which consists primarily of printer depreciation and rent. Calculate the number of advertising hangers that Laguna must sell in order to break even. Note: Round your intermediate calculation to 2 decimal places and final answer to the nearest whole number. Break-even Hangers