Exercise 4-2Marta Mfg. Co. manufactures cellular phones. For the coming year, thecompany has budgeted the following costs for the production and sale of 3,000cellular units.PercentageBudgetedof costsBudgetedcostsconsideredper UnitvariablecostsDirect materialsP630,000P210100%Direct labor300,000100100%Factory overheadSelling & administrative720,00024020%25%600,000P2,250,000200expensesTotalsP750REQUIRED:1. Compute the sales price per unit that would result in a budgeting operatingincome of P900,000, assuming that the company produces and sells 3,000units. (Hint: First compute the budgeted sales revenue needed to producethis operating income.)2. Assuming that the company decides to sell the cellular units at a unit price ofP1.250 per unit, compute the following:a. Total fixed costs budgeted for the vear.b. Variable costs per unit.c. The unit contribution margin.d. The number of cellular units that must be produced and sold annually tobreak even at a sales price of P1,000 per unit. Exercise 4-23Priscilla Systems manufactures tape decks and currently sells 18,500units annually to producers of sound reproduction systems. The president of thecompany anticipates a 15% increase in the cost per unit of direct labor onJanuary 1, 2010. He expects all other costs and expenses to remain unchanged.The president has asked you to assist him in developing the information he needsto formulate a reasonable product strategy for next vear.You are satisfied that volume is the primary factor affecting costs andexpenses and have separated the semi-variable costs into their fixed and variablesegments. Beginning and ending inventories remain at a level of 1,000 units.Below are the current year data assembled for your analysis:Sales price per unitVariable costs per unit:P100Direct materialsDirect laborP1525Factory overhead, selling & administrativeexpensesContribution margin per unit (30%)3070P30Fixed costsP390,000REQUIRED:1. What increase in selling price is necessary to cover the 15% inerease in directlabor cost and still maintain the current contribution margin ratio of 30%?2. How many tape decks must be sold to maintain the current operating incomeof P350,000 if the sales price remains at P100 and the 15% wage increasegoes into effect? (Hint: first compute the unit contribution margin.)3. The president believes that an additional P700,000 of machinery (to bedepreciated at 20% annually) will increase present capacity (20,000 units) by25%. If all tape decks produced can be sold at the present price of P100 perunit and the wage increase goes into effect, how would the estimatedoperating income before capacity is increased compare with the estimatedoperating income at full capacity before and after the expansion.

please like the answer your response matters Budgeted Costs Consideredper Pair Percentage…

Marta Mfg. Co. manufactures cellular phones. For the coming year, the company has budgeted the following costs for the production and sale of 3,000 cellular units. Percentage Budgeted of costs Budgeted costs considered per Unit P210 costs variable Direct materials P630,000 100% Direct labor 300,000 100 100% Factory overhead Selling & administrative 720,000 240 20% 200 25% 600,000 P2,250,000 expenses Totals P750 REQUIRED: 1. Compute the sales price per unit that would result in a budgeting operating income of P900,000, assuming that the company produces and sells 3,000 units. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) 2. Assuming that the company decides to sell the cellular units at a unit price of P1.250 per unit, compute the following: a. Total fixed costs budgeted for the vear. b. Variable costs per unit. c. The unit contribution margin. d. The number of cellular units that must be produced and sold annu break even at a sales price of P1,000 per unit. nually to

Marta Mfg. Co. manufactures cellular phones. For the coming year, the company has budgeted the following costs for the production and sale of 3,000 cellular units. Percentage Budgeted of costs Budgeted costs considered per Unit P210 costs variable Direct materials P630,000 100% Direct labor 300,000 100 100% Factory overhead Selling & administrative 720,000 240 20% 200 25% 600,000 P2,250,000 expenses Totals P750 REQUIRED: 1. Compute the sales price per unit that would result in a budgeting operating income of P900,000, assuming that the company produces and sells 3,000 units. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) 2. Assuming that the company decides to sell the cellular units at a unit price of P1.250 per unit, compute the following: a. Total fixed costs budgeted for the vear. b. Variable costs per unit. c. The unit contribution margin. d. The number of cellular units that must be produced and sold annu break even at a sales price of P1,000 per unit. nually 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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Subject: Acounting
I just need questions 5, 7 and 8
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