Ocean City Kite Company sells kites for $9 per kite. In FY 2019, total fixed costs are expected to be $240,000 and variable costs are estimated at $3 a unit. Ocean City Kite Company wants to have an FY 2019 operating income of $90,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal.

Ocean City Kite Company sells kites for $9 per kite. In FY 2019, total fixed costs are expected to be $240,000 and variable costs are estimated at $3 a unit. Ocean City Kite Company wants to have an FY 2019 operating income of $90,000. Use this information to determine the number of units of kites that Ocean City Kite Company must sell in FY 2019 to meet this goal.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 10Q: If the sales forecast estimates that 50,000 units of product will be sold during the following year,...

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he production cost information for Blossom's Salsa is as follows: Blossom's Salsa Production Costs April 2020 Production 23,000 Jars of Salsa Ingredient cost (variable) $13, 800 Labor cost (variable ) 9,660 Rent (fixed) 4, 300 Depreciation (fixed) 6,000 Other (fixed) 1,400 Total $35, 160 The company is currently producing and selling 345,000 jars of salsa annually. The jars sell for $7.00 each. The company is considering lowering the price to $6.30. Suppose this action will increase sales to 391, 000 jars. What is the incremental cost associated with producing an extra 46, 000 jars of salsa?
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Garcia Corporation manufactures a drink bottle, model CL24. During 2020, Garcia produced 190,000 bottles at a total cost of $674,500. Beecher Corporation has offered to supply as many bottles as Garcia wants at a cost of $3.45 per bottle. Garcia anticipates needing 205,000 bottles each year for the next few years. Read the requirements. Requirement 1a. What is the average cost of manufacturing a drink bottle in 2020? How does it compare to Beecher's offer? The average cost of per bottle is than Beacher's offer Requirement 1b. Can Garcia use the answer in requirement 1a to determine the cost of manufacturing 205,000 drink bottles? Explain. take the average manufacturing cost in 2020 to determine the total cost of manufacturing 205,000 drink bottles. The reason is that Garcia Requirement 2. Garcia's cost analyst uses annual data from past years to estimate the following regression equation with total manufacturing costs of the drink bottle as the dependent variable and drink bottles…
Skysong, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2025 are projected as follows. Quarter Units First 91,200 Second 171,000 Third 627,000 Fourth 136,800 Annual total 1,026,000 Skysong incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.40 per unit. Skysong will incur fixed manufacturing costs of $820,800 and fixed nonmanufacturing costs of $1,231,200. Skysong will sell its product for $4 per unit. (a) Determine the amount of net income Skysong will report in each of the four quarters of 2025, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to O decimal places, e.g. 5,125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 1st Quarter Income before taxes (Integral Approach)…
Santana Rey expects sales of Business Solutions’s line of computer workstation furniture to equal 300 workstations (at a sales price of $3,300 each) for 2019. The workstations’ manufacturing costs include the following. Direct materials $ 750 per unit Direct labor $ 400 per unit Variable overhead $ 60 per unit Fixed overhead $ 24,000 per year The selling expenses related to these workstations follow. Variable selling expenses $ 45 per unit Fixed selling expenses $ 3,500 per year Santana is considering how many workstations to produce in 2019. She is confident that she will be able to sell any workstations in her 2019 ending inventory during 2020. However, Santana does not want to overproduce as she does not have sufficient storage space for many more workstations.Required:1. Complete the following income statements using absorption costing.2. Complete the following income statements using variable costing.
During FY 2020, Dorchester Company plans to sell Widgets for $14 a unit. Current variable costs are $6 a unit and fixed costs are expected to total $146,000. Use this information to determine the dollar value of sales for Dorchester to break even. (Round to the nearest whole dollar.). Need Answer
Sarasota, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 64,000 Second 120,000 Third 440,000 Fourth 96,000 Annual total 720,000 Sarasota incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Sarasota will incur fixed manufacturing costs of $576,000 and fixed nonmanufacturing costs of $864,000. Sarasota will sell its product for $4 per unit. 1. Determine the amount of net income Sarasota will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. (Round answers to 0 decimal places) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) Net income (Discrete Approach)…
First, Determine the selling price to retailers in 2020:
In 2019, Bonita sold 1000 units at $500 each, and earned net income of $40000. Variable expenses were $200 per unit, and fixed expenses were $220000. The same selling price is expected for 2020. Bonita’s variable cost per unit will rise by 10% in 2020 due to increasing material costs, so they are tentatively planning to cut fixed costs by $10000. How many units must Bonita sell in 2020 to maintain the same income level as 2019? A. 806 B. 893 C. 1000 D. 926
tamarisk, Inc. is a company that manufactures and sells a single product. Unit sales for each of the four quarters of 2020 are projected as follows. Quarter Units First 96,000 Second 180,000 Third 660,000 Fourth 144,000 Annual total 1,080,000 Tamarisk incurs variable manufacturing costs of $0.40 per unit and variable nonmanufacturing costs of $0.35 per unit. Tamarisk will incur fixed manufacturing costs of $864,000 and fixed nonmanufacturing costs of $1,296,000. Tamarisk will sell its product for $4 per unit. (a) Determine the amount of net income Tamarisk will report in each of the four quarters of 2020, assuming actual sales are as projected and employing the integral approach to interim financial reporting. (Ignore income taxes.) Repeat the analysis under the discrete approach. 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Net income (Integral Approach) $ $ $ $…
Wildhorse Enterprises is a portable hot tub manufacturer. The company produces both 2-person and 4-person hot tubs. Chris Anderson, the company's sales manager, prepared the following sales forecast for 2021. The forecasted sales prices include a 5 percent increase in the 2-person spa price and a 10 percent increase in the 4-person spa price, to cover anticipated increases in raw materials prices. 2-person spa 4-person spa (a) on spas: Your answer is partially correct. geted sales price Prepare Wildhorse's sales budget for 2021. geted sales price ✓ il revenue on spas: Sales Price geted sales price geted sales price geted sales price v frevenue V $1,400 $2,700 V 1st Quarter 650 350 LA 1A 1st Quarter 2nd Quarter 910000 490000 1400000 DE 650 Units 250 3rd Quarter 550 250 2nd Quarter 4th Quarter 910000 350000 1260000 750 350 SA 3rd Quarter 1050000 490000 1540000 SA SA SA SA FA 1