Problem 1:Kooper sells several products. Information of average revenue and costs is asfollowsSelling price per unitVariable cost per unitDirect materialDirect laborSelling costsAnnual fixed costs28.5$1.45$Manufacturing overhead 0.85$2.50$135,000$6.0$Suppose that the company decides to lower the selling price by 14.25% butcontinues to sell the same quantity, which is 16,000 units. The operating income willbe reduced by how much?

Direct labor refers to production or service personnel who are directly in charge of a particular…

Answered: Problem 1: Kooper sells several…

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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Hilton Enterprises sells a product for $57 per unit. The variable cost is $29 per unit, while fixed costs are $206,976. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $62 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $62 per unit fill in the blank 2 units
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Hunter Inc. sells a unique product with the following information available: Sales price Variable costs Fixed Costs Units produced and sold $85 per unit $25 per unit If one more unit is sold, net income will: $10,000 1,250 O increase by $60. O increase by $52. O decrease by $8. O decrease by $33.
Rylan Corporation received an offer from an exporter for 25,000 units of product at $16 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $22 Unit manufacturing costs: Variable 11 Fixed 6 What is the amount of the income or loss from acceptance of the offer? a. $125,000 loss b. $125,000 income c. $25,000 loss d. $25,000 income
Flower Depot, Inc. sells a single product for $13. Variable costs are $3 per unit and fixed costs total $100,000 at a volume level of 7,500 units. What dollar sales level would Flower Depot have to achieve to earn a target profit of $400,000? A. $550,000. B. $750,000. C. $450,000. D. $1,000,000. E. $650,000.
TB Problem 17-186 (Static) The following is an incomplete... The following is an incomplete pension spreadsheet for the current year for Sparky Corporation. Required: 1. Complete the pension spreadsheet. 2. Prepare the journal entries to record pension expense and funding of plan assets for the year. 3. Prepare the journal entry(ies) to record any gains or losses for the year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete the pension spreadsheet. ($ in millions) debit (credit) PBO Plan Assets Prior Service Cost Net(Gain)Los8 Pension Expense Net Pension Cash Beginning balance 450 60 55 (Liability) or Asset (10) Service cost (85) Interest cost (45) Expected return on assets 55 (Gain) or loss on assets Amortization of: Prior service cost Net (gain) or loss Loss on PBO Contributions to fund Retiree benefits paid Ending balance (32) 40 (562) 3 (1) 54 89
The sole product of Kilo Company sells for $10 and its fixed costs total $220,000. If its break-even point is 170,000 units, what is its variable cost per unit? Select one: A. $8.71 B. $7.41 C. $9.23 D. $1.29 E. The answer cannot be determined by the information given.
Solomon company has total fixed cost of $15,000, variable cost per unit of $6, and a price of $8. If Solomon wants to earn a target profit of $3,600, how many units must be sold? 2,500 7,500 9,300 18,600 18,750
Applying Differential Analysis to Alternative Profit Scenarios Epson produces color cartridges for inkjet printers. Suppose cartridges are sold to mail-order distributors for $5.20 each. Total fixed costs per year are $1,881,000. Variable cost per unit are $1.85 for direct materials, $0.10 for direct labor, $0.30 for factory overhead, and $0.05 for distribution. The variable distribution costs are for transportation to mail-order distributors. Also assume the current annual production and sales volume is 990,000 and annual capacity is 1,210,000 units. REQUIRED The company would like to increase profitability in the upcoming year. Estimate the effect of the following separate proposals on annual profits. a. A 15% increase in the unit selling price would likely decrease annual sales by 99,000 units. Note: enter all numbers as positive numbers, do NOT use a negative sign. x . Net estimated profits would increase ✔ by $ 0 b. A 10% decrease in the unit selling price would likely increase…
The information below relates to the only product of Catherine Company: Exercise 4-13 Sales price per unit Variable cost per unit Fixed costs per year P48 36 P240,000 REQUIRED: i Compute the contribution margin ratio and the peso sales volume required to break-even. 2. Assuming that the company sells 75,000 units during the year, compute the margin of safety sales volume. Exercise 4-14 Cristina Corporation has fixed costs of P72,000 per month. It sells two products as follows: Sales Variable Contribution Price Cost Margin Product A P20 P8 P12 B 20 14 REQUIRED: 1. What monthly peso sales volume is required to break-even if three units of product A are sold with one unit of product B? 2. What monthly peso sales volume is required to break-even if one unit of product A is sold with three units of product B?
What is the break-even point in sales units? (see attached)
Narchie sells a single product for $50. Variable costs are 70% of the selling price, and the company has fixed costs that amount to $374,400. Current sales total 20,000 units.If Narchie sells 28,000 units, its safety margin will be: A. $374,400. B. None of the answers is correct. C. $1,400,000. D. $152,000. E. $1,248,000.

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