Pteri Manufacturing makes a single product - the Pteri. Information for 2005 appears below:Sales in units: 200,000Production in units: 250,000Beginning inventory: 0Variable production cost per unit: $1.00Variable selling cost per unit: $0.30Fixed production cost per year: $100,000Fixed Selling and administrative cost per year: $50,000Selling price per unit $3.00What is the cost per unit of inventory using variable costing?

Step 1: Understand Variable Costing :Under variable costing, only variable production costs are…

Answered: Pteri Manufacturing makes a single…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

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Klamath Company produces a single product. The projected income statement for the coming year is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. 2. Suppose 10,000 units are sold above break-even. What is the operating income? 3. Compute the contribution margin ratio. Use the contribution margin ratio to compute the break-even point in sales revenue. (Note: Round the contribution margin ratio to four decimal places, and round the sales revenue to the nearest dollar.) Suppose that revenues are 200,000 more than expected for the coming year. What would the total operating income be?
Scent Fragrance Company manufactures and sells several ranges of perfumes. The Average revenue and cost of sales are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96,000 a) Calculate the contribution margin per unit. b) Calculate the number of units Scent Fragrance Company must sell each year to break even. c) Calculate the number of units Scent Fragrance Company must sell to yield a profit of$144,000. d) Managers may use Sensitivity analysis in their accounting system. i) What is sensitivity analysis? ii) How is Sensitivity analysis useful to managers?
Northenscold Company sells several products. Information of average revenue and costs are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $2.00 ABC cost per unit $0.50 Fixed MOH $0.40 Variable MOH $0.30 Selling costs $2.00 Annual fixed costs $96,000 Calculate the number of units Northenscold's must sell to yield a profit of $144,000. (round to nearest whole unit).
Given below are part of the recent income statement of Golden Corporation reported this year: Sales revenue P 10,000,000 Variable costs 6,000,000 Fixed costs 3,200,000 If these data are based on the sale of 10,000 units, the contribution margin per unit would be: 80 280 400 920 Group of answer choices 1 2 3 4
Shock Company manufactures electronic equipment. The following is a summary of its basic cost and revenue data: Per Unit Percent Sales price $ 450 100.00 Variable costs 232 51.56 Unit contribution margin $ 218 48.44 Assume that Shock Company is currently selling 580 products per month and monthly fixed costs are $79,600. Shock Company's operating income (πB) is calculated to be:
Grover Company has the following data for the production and sale of 2,000 units. Sales price per unit $ 800 per unit Fixed costs: Marketing and administrative $ 400,000 per period Manufacturing overhead $ 200,000 per period Variable costs: Marketing and administrative $ 50 per unit Manufacturing overhead $ 80 per unit Direct labor $ 100 per unit Direct Materials $ 200 per unit What is the conversion cost per unit? $280 $180 $100 $380 A cost that would be included in product costs under both absorption costing and variable costing is: supervisory salaries. variable selling expenses. factory rent. variable manufacturing costs. Younes Inc. manufactures industrial components. One of its products, which is used in the construction of industrial air conditioners, is known as P06. Data concerning this product are given below: Per Unit Selling price $ 220 Direct…
The Best Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items: Ordering costs per purchase order Carrying costs per year P15,000 P300 per unit Annual demand is 20,000 packages per year. The quantity per order equals 1,000 units. What is the total annual ordering and holding costs? P450,000 P25,000 P300,000 P150,000
Ziggy Creations makes and sells a single product. Individual product details are as follows: Selling price $ 45 Direct materials $20 Direct labour $10 Fixed Costs $480 000 Estimated sales 36 000 units Production capacity 40 000 units a) Calculate the contribution margin per unit. b) Calculate the breakeven point in units. c) Calculate the expected profit from the estimated sales. d) If Ziggy’s required a profit of $90 000, what level of sales dollars would be required? e) Variable costs are to increase by $5 per unit. If Ziggy’s wants to maintain a profit of $90,000, what will be the required sales volume? Can Ziggy’s achieve this new estimated sales volume?
The following information is for LaPlanche Industries Inc.: East West Sales volume (units): Product XX 45,000 38,000 Product YY 60,000 50,000 Sales price: Product XX $700 $660 Product YY $728 $720 Variable cost per unit: Product XX $336 $336 Product YY $360 $360 a. Determine the contribution margin for the Product YY.$ b. Determine the contribution margin for the West Region.
The Products 4U Inc. manufactures and sells one product which has the following available information: Description Cost Selling price per unit $27.00 Variable costs per unit: Direct material $9.00 Direct labour $2.30 Manufacturing overhead $1.40 Sales commission $3.80 Total annual fixed costs $100,000 How many units does the company have to sell every year to break even? Rounding Rules: For units, round up to the next whole unit. Examples: If your answer is 11,248.4689 units, enter 11249 If your answer is 11,248.5175 units, enter 11249 If your answer is 11,248.0010 units, enter 11249
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year Product Weedban $ 10.00 $ 3.00 $ 133,000 Greengrow $31.00 $11.00 $ 35,000 Last year the company produced and sold 41,500 units of Weedban and 24,500 units of Greengrow. Its annual common fixed expenses are $105,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost information relating to the products follow: Selling price per unit Variable expenses per unit Traceable fixed expenses per year. Weedban $ 8.00 $ 3.20 $ 135,000 Product Greengrow $ 35.00 $ 13.00 $ 45,000 Last year the company produced and sold 42,500 units of Weedban and 21,500 units of Greengrow. Its annual common fixed expenses are $97,000. Required: Prepare a contribution format income statement segmented by product lines. Total Company Product Line Weedban Greengrow

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