NUBD Co. produces two products from a joint process.Information about the two joint products as follows: Anticipated production Selling price per pound at split-off Additional processing costs/pound after split-off (all variable) Selling price/pound after further processing Product X 2,000 lbs P30 P15 Product Y 4,000 lbs P16 P30 P40 P50

NUBD Co. produces two products from a joint process.Information about the two joint products as follows: Anticipated production Selling price per pound at split-off Additional processing costs/pound after split-off (all variable) Selling price/pound after further processing Product X 2,000 lbs P30 P15 Product Y 4,000 lbs P16 P30 P40 P50

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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Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost $3,000 Material cost per unit $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units = (b) Use Goal Seek to find the exact breakeven point. Assign Set cell:…