Please correct solution.... Plastix Co. produces plastic that is used for injection-moldingapplications. In 2020, Plastix produced 6,000 tons of plasticand sold 3,800 tons. In 2021, the company produced the sameamount of plastic, and sales were 4,500 tons (the companysold all of its inventory). In both years, the selling price per tonwas $2,500, variable manufacturing costs were $500 per ton,and variable selling expenses were $700 for each ton of plasticsold. Fixed manufacturing costs were $3,000,000, and fixedadministrative expenses were $600,000.What is the unit manufacturing cost under absorption costing inyear 2020?

Final Answer:Unit manufacturing cost under absorption costing in 2020 = $1,000 per…

Answered: Plastix Co. produces plastic that is…

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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The Titan Company provides you with the following information for the current year: Revenues = $2,000,000Cost of goods sold = $750,000 (2/3 of this amount varies with the number of units produced)S&A costs = $200,000 (1/2 of this amount is fixed)Selling price = $40 per unit The company sold 50,000 units of their product in the current year. The company expects unit sales of their product to increase 20% in the next year. Based on the information above, what would be the expected increase to profit before taxes in the coming year?
Last year, Hever Inc. had sales of $936,000, based on a unit selling price of $390. The variable cost per unit was $273, and fixed costs were $128,700. The maximum sales within Hever Inc.’s relevant range are 3,100 units. Hever Inc. is considering a proposal to spend an additional $52,650 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last year. In your computations, do not round the contribution margin percentage. Break-even sales (dollars) Break-even sales (units) 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the income from operations for last year and (b) the maximum income from operations that could have been realized during the year. In your computations, do not round the contribution margin percentage. Income from operations Maximum income from operations…
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