One of the makeup kit models that Tiegs Corporation produces is targeted at professional women. The goal for Year 2 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced. The industry market size for makeup kits increased 5% from Year 1 to Year 2. The following additional data are available for Years 1 and 2: Year 1 850,000 $180 340,000 Year 2 935,000 $175 Makeup kits produced and sold Selling price Direct materials (kilograms) Direct material costs per kilogram Marufacturing capacity (kits) Total converson costs Conversion costs per unit of capadty 364,650 $52 1.050 000 $34,650,000 $50 1,000,000 $30,000,000 530 $33

One of the makeup kit models that Tiegs Corporation produces is targeted at professional women. The goal for Year 2 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of makeup kits that can be produced. The industry market size for makeup kits increased 5% from Year 1 to Year 2. The following additional data are available for Years 1 and 2: Year 1 850,000 $180 340,000 Year 2 935,000 $175 Makeup kits produced and sold Selling price Direct materials (kilograms) Direct material costs per kilogram Marufacturing capacity (kits) Total converson costs Conversion costs per unit of capadty 364,650 $52 1.050 000 $34,650,000 $50 1,000,000 $30,000,000 530 $33

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

PLEASE ANSWER QUESTION A, B & C. NOT PUT IN EXCEL Question 2 Jack Knife Electronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42000 speaker sets: Sales $3,360,000 Variable costs $840,000 Fixed costs $2,280,000 Management is considering relocating its manufacturing facilities to northern Cuba to reduce costs. Variable costs are expected to average $18 per set; annual fixed costs are anticipated to be $1,984,000. Required: A. Calculate the company’s current income and determine the level of dollar sales needed to double that (Assuming operations remain in Jamaica). B. Determine the break-even point in speaker sets if operations are shifted to Cuba. C. Using an excel sheet, prepare the breakeven chart if operations are shifted to Cuba
Please help me with show all calculation thanku
need help with this question
How do you work this probl
Delsteph Co introduced a new product, LD to its range last year. The machine used to mould each item is a bottleneck in the production process meaning that a maximum of 7000 units per annum can be manufactured. The LD product has been a huge success in the market place and as a result, all items manufactured are sold. The marketing department has prepared the following demand forecast for future years as a result of feedback from customers. Year 1 Demand (units) 8500 2 Maximum additional output Current selling price Variable operating costs Fixed operating costs 10500 $30000 3 The directors are now considering investing in a second machine that will allow the company to satisfy the excess demand. The following information relating to this investment proposal has now been prepared: Initial investment 7000 units 12000 Page 7 of 10 $90 per unit $40 per unit $20000 per year 4 6000 If production remained at 6000 units, the current selling price would be expected to continue throughout the…
Current Attempt in Progress Sandhill Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,065,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows. Per Undergarment Total Direct materials $1.92 $2,44,800 Direct labor 0.43 457,950 Variable manufacturing overhead 1.02 1,086,300 Fixed manufacturing overhead Variable selling expenses 1.53 1,629,450 0.37 394,050 Totals $5.27 $5,612,550 The U.S.Army has approached Sandhill Fiber and expressed an interest in purchasing 249,000 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an…
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $40,000. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: VasesFigurinesPrice$40$70Variable cost3042Contribution margin$10$28Number of units1,000500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break-even vasesfill in the blank 1 unitsBreak-even figurinesfill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5,260 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 1,500, and figurine sales will increase to 1,000 units. What is the new break-even point in…
Willis Company is trying to decide which of two bicycle wheels to manufacture next quarter. Cost data pertaining to the two choices follow. Multiple Choice Cost of materials per unit Cost of direct labor per unit Advertising cost per year 4,000 Depreciation on equipment 6,000 Which costs are relevant to the decision of which wheel to produce? Cost of materials and direct labor Wheel A $25 30 Cost of direct labor, advertising, and depreciation Cost of materials, direct labor and advertising Cost of advertising and depreciation Wheel XZ $45 35 7,000 9,000
Please help me with show calculation thanku
A-2
Parker Pottery produces a line of vases and a line of ceramic figurines. Each line uses the same equipment and labor; hence, there are no traceable fixed costs. Common fixed cost equals $38, 400. Parker's accountant has begun to assess the profitability of the two lines and has gathered the following data for last year: Vases Figurines Price $40 $70 Variable cost 30 42 Contribution margin $10 $28 Number of units 1,000 500 Required: If required, round your final answers to nearest whole value. 1. Compute the number of vases and the number of figurines that must be sold for the company to break even. Break - even vases fill in the blank 1 units Break - even figurines fill in the blank 2 units 2. Parker Pottery is considering upgrading its factory to improve the quality of its products. The upgrade will add $5, 280 per year to total fixed cost. If the upgrade is successful, the projected sales of vases will be 2,000, and figurine sales will increase to 1,000 units. What is the new break -…