Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $555,000 per year. Additionaldata follow.Sales price per unitVariable costs per unitSmall$ 42$ 32$Large62$ 273:36Sales mix percent80%20%<The company is considering buying new equipment that would increase total fixed costs by $61,000 per year and reduce the variablecosts of each type of flag by $1 per unit.Required:1. Compute the weighted-average contribution margin without the new equipment.2. Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point inunits for each product.3. Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of units to sell foreach product.Complete this question by entering your answers in the tabs below.Required 1 Required 2Required 3Compute the weighted-average contribution margin without the new equipment.Weighted-average contribution margin< Required 1Required 2 >

To compute the weighted-average contribution margin without the new equipment, follow these…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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Comfort Ride manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following informatic relates to current production of seats: Sale price per unit $400 Variable costs per unit: \table[[Manufacturing,$230
Flex gel produces special type of gel pens with production capacity at normal capacity was 150,000 units. Variable cost =P16 per unit Fixed cost=P900,000 Currently the company was operating at the capacity level of 80% If it wants to earn profit of P600,000, what has to be the price of the product per unit?
1. ABC Taxi has an average fixed cost of $8,000 a year for each car. Each mile driven has variable cost $.40 and collect fares of $.60. How many miles a year does each car have to travel before making profit? a. ABC company is contemplating adding a new line of product, which will require leasing new equipment for a monthly payment of $12,000. Variable costs would be $15.00 per product, and selling price per product is $40. What would be profit or loss if business sell 600 of these products? b. If 800 quantity of products can be sold, and a profit target is $10,000, what price should be charged for each product?
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Steven and Son Inc. sells its car wash package for $180 per unit, its total variable costs per unit is $80 per unit, whereas the total fixed costs are $150,000. The company is considering the increase this year targeted profit to $250,000. What is the company's break even point in units? Select one: O a. To breakeven the company needs to produce 1,500 units O b. To breakeven the company needs to produce 1,875 units c. To breakeven the company needs to produce 2,500 units d. To breakeven the company needs to produce 833 units
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Q.1 ChemCo has developed a new product, and has consulted with its marketing department, who have determined that the market share will be 20,000 units, and have recommended that a selling price of $60.00 per unit would be app- ropriate. ChemCo has been able to keep the cost per unit at $50.00. The company has spent a total of $900,000 to design and develop this product. Required: Use the above information to compute as follows: 1. Compute the expected margin for ChemCo 2. Compute the expected turnover 3. Compute the ROI Explain why it is necessary to do the above computations, and show how management can use this information for managing operations
A4
Patriot Company manufactures flags in two sizes, small and large. The company has total fixed costs of $260,000 per year. Additional data follow. Sales price per unit Variable costs per unit Sales mix percent Small $ 26 $ 13 80% Large $33 $ 20 20% The company is considering buying new equipment that would increase total fixed costs by $51,500 per year and reduce the variable costs of each type of flag by $1 per unit. Break-even point in units Break-even point - Small Break-even point - Large Required: 1. Compute the weighted-average contribution margin without the new equipment. 2. Assume the new equipment is not purchased. Determine the break-even point in total sales units and the break-even point in units for each product. 3. Assume the new equipment is purchased. Compute the break-even point in total sales units and the number of units to sell for each product. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assume the new…
Wexford Industrial Supply is considering a new project with estimated depreciation of $27,000 and fixed costs of $32,000. The accounting break-even level of sales is $67,160 and the average variable costs per unit are $4.80. What is the accounting break-even quantity? Multiple Choice 12,292 units 6,667 units 1,700 units 5,625 units 13,992 units Please answer fast i give you upvote.
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