I am searching for the accurate solution to this general accounting problem with the right approach. MetroTech Inc. produces a single product: high-performanceportable chargers. The budget going into the current yearanticipated a selling price of $75 per unit. Due to marketcompetition, the company had to reduce selling prices by 12%during the year. Budgeted variable costs per unit are $50, andbudgeted total fixed costs are $200,000 for the year.Theanticipated sales volume for the year was 10,000 units. Actualsales volume was 7% less than budgeted.What was the sales price variance for the year?

Step 1: Define Sales Price Variance Sales price variance is the difference between the actual…

Answered: MetroTech Inc. produces a single…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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Similar questions

Taylor Corporation is analyzing the cost behavior of three cost items, A, B, and C, to budget for the upcoming year. Past trends have indicated the following dollars were spent at three different levels of output: In establishing a budget for 14,000 units, Taylor should treat A, B, and C costs as: a. semivariable, fixed, and variable, respectively. b. variable, fixed, and variable, respectively. c. semivariable, semivariable, and semivariable, respectively. d. variable, semivariable, and semivariable, respectively.
Lowell Manufacturing Inc. has a normal selling price of 20 per unit and has been selling 125,000 units per month. In November, Lowell Manufacturing decided to lower its price to 19 per unit expecting it can increase the units sold by 16%. a. Compute the normal revenue with a 20 selling price. b. Compute the planned revenue with a 19 selling price. c. Compute the actual revenue for November, assuming 135,000 units were sold in November at 19 per unit. d. Compute the revenue price variance, assuming 135,000 units were sold in November at 19 per unit. e. Compute the revenue volume variance, assuming 135,000 units were sold in November at 19 per unit. f. Analyze and interpret the lowering of the price to 19.
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.
Shalimar Company manufactures and sells industrial products. For next year, Shalimar has budgeted the follow sales: In Shalimars experience, 10 percent of sales are paid in cash. Of the sales on account, 65 percent are collected in the quarter of sale, 25 percent are collected in the quarter following the sale, and 7 percent are collected in the second quarter after the sale. The remaining 3 percent are never collected. Total sales for the third quarter of the current year are 4,900,000 and for the fourth quarter of the current year are 6,850,000. Required: 1. Calculate cash sales and credit sales expected in the last two quarters of the current year, and in each quarter of next year. 2. Construct a cash receipts budget for Shalimar Company for each quarter of the next year, showing the cash sales and the cash collections from credit sales. 3. What if the recession led Shalimars top management to assume that in the next year 10 percent of credit sales would never be collected? The expected payment percentages in the quarter of sale and the quarter after sale are assumed to be the same. How would that affect cash received in each quarter? Construct a revised cash budget using the new assumption.
During the current year, OutlyTech Corp. expected to sell 24,000 telephone switches. Fixed costs for the year were expected to be $12,144,000, the unit sales price was budgeted at $3,200, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in sales dollars is:
During the current year, Mute Corporation expected to sell 24,700 telephone switches. Fixed costs for the year were expected to be $12,147,500, the unit sales price was budgeted at $3,550, and unit variable costs were budgeted at $1,720. Mute's margin of safety (MOS) in units is
In the current year, Becker Sofa Company expected to sell 12,000 leather sofas. Fixed costs for the year were expected to be $8,400,000; unit sales price was budgeted at $4,600; and unit variable costs were expected to be $2,200.Becker Sofa Company's margin of safety (MOS) in sales dollars is:
During the current year, OutlyTech Corp. expected to sell 22,600 telephone switches. Fixed costs for the year were expected to be $12,143,000, the unit sales price was budgeted at $3,300, and unit variable costs were budgeted at $1,440.OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number):
Please need answer the general accounting question
During the current year, Mute Corporation expected to sell 22,200 telephone switches. Fixed costs for the year were expected to be $12,141,000, the unit sales price was budgeted at $3,100, and unit variable costs were budgeted at $1,280. Mute's margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
Framing House, Inc. produces and sells picture frames. Variable costs are expected to be $15 per frame; fixed costs for the year are expected to total $170,000. The budgeted selling price is $23 per frame. The sales dollars required to make a before-tax profit (πB) of $21,000 for Framing House would be:
During the current year, OutlyTech Corp. expected to sell 22,500 telephone switches. Fixed costs for the year were expected to be $12,142,500, the unit sales price was budgeted at $3,250, and unit variable costs were budgeted at $1,400. OutlyTech's margin of safety (MOS) in units is (rounded up to nearest whole number): Multiple Choice 17,106. 15,936. 19,716. 15,806. 21,026.

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