Question No. 1-1The HASF Company has an annual plant capacity of 50,000 units. Predicted data on sales andcosts are given below.Sales (50 per unit)1,000,000Manufacturing costVariable (material labor and overhead)Fixed overheadSelling and administrative expensesVariable (sales commission RS 0.5 per unit)Fixed40 per unit30,0002 per unit7,000A special order has been received from outside for 5,000 units at a selling price of 45 per unit thisorder will no effect on regular sales. The usual sales commission on this order will be reduced byone half.Required:a. Should the company accept / reject the order?b. Keeping in view the above answer narrate rationale to support your answer

Contribution states the sales revenue portion which is not consumed through variable costs ad…

Answered: Question No. 1-1 The HASF Company has…

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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Mc Graw Hill 1 Andretti Company has a single product called a Dak. The company normally produces and sells 86,000 Daks each year at a selling price of $60 per unit. The company's unit costs at this level of activity are given below: Q A Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit N A number of questions relating to the production and sale of Daks follow. Each question is independent. Required: 1-a. Assume that Andretti Company has sufficient capacity to produce 107,500 Daks each year without any increase in fixed manufacturing overhead costs. The company could increase its unit sales by 25% above the present 86,000 units each year if it were willing to increase the fixed selling expenses by $150,000. What is the financial advantage (disadvantage) of investing an additional $150,000 in fixed selling expenses? 1-b. Would the additional investment be justified? 2. Assume…
Answer letter c and d only
Planet Company sells a product for $16 per unit, variable cost is $12 per unit, and the total fixed cost is $6,000. What is the break-even point in units? a.500 units b.375 units c.1,700 units d.1,210 units e.1,500 units
Units to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the number of pairs of shoes Chillmax must sell to earn operating income of $81,900. 2. Check your answer by preparing a contribution margin income statement based on the number of units calculated.
vj subject-Accounting Hanks recently produced & sold 2777 units. Fixed costs per unit at this level of activity amounted to $8; variable costs per unit were $9. How much total cost would the company anticipate if during the next period it produced & sold 6919 units? Note: assume this level is still within the relevant range Round your final answer to 2 decimal places
RequIred Informotion (The following information applies to the questions displayed below] Cane Company manufactures two products called Alpha and Beta that sell for $225 and $175, respectively. Each produc uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 130,000 units of each product. Its average cost per unit for each product at this level of activity are given below. Alpha $42 42 $24 32 Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses 34 29. $173 Total cost per unit The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses. are unavoidable and have been allocated to products based on sales dollars. 10. Assume that Cane expects to produce and sell 74,000 Alphas during the current year. A supplier has offered to manufacture a deliver 74,00O Alphas to Cane for a price of…
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N1. Account Mitchell Corporation manufactures a single product. The selling price is $85 per unit, and variable costs amount to $68 per unit. The fixed costs are $16,500 per month. How many units must be sold each month to earn a monthly operating income of $8,000? (Round your final answer up to the nearest whole number.) Multiple Choice 971 units 1,442 units 353 units 122,500 units
Break-Even Sales and Sales to Realize Income from Operations For the current year ending October 31, Yentling Company expects fixed costs of $470,400, a unit variable cost of $57, and a unit selling price of $85. a. Compute the anticipated break-even sales (units).fill in the blank 1 units b. Compute the sales (units) required to realize income from operations of $109,200.fill in the blank 2 units
Campbell company incurs annual fixed costs of $65,400 variable costs for Campbell's product are $32.00 per unit, and the sales price is $50.00 per unit. Campbell desires to earn an annual profit of $48,000. Required Use the per-unit contribution margin approach to determine the sale volume in units and dollars required to earn the desired profit. Sales in dollars Sales Volume in units
Dakota Company provides the following information about its single product Target operating income $40,000 Selling price per unit $3.50 Variable cost per unit $1.05 Total fixed costs $90,000 What is the break-even point in units?

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