Problem 7-44 Break-Even Analysis; Operating Leverage; New Manufacturing Environment (LO 7-1, 7-8, 7-10)[The following information applies to the questions displayed below.]Celestial Products, Inc., has decided to introduce a new product, which can be manufactured by either a computer-assisted manufacturing system or a labor-intensive production system. The manufacturing method will not affect thequality of the product. The estimated manufacturing costs by the two methods are as follows:Computer-AssistedManufacturing SystemLabor-IntensiveProduction System2$Direct materialDirect labor (DLH denotes direct-labor hours)Variable overheadFixed overhead*8.1010.50 0.8DLH @ $16.506.00 0.8DLH @ $12.009.0013.209.60$2,280,000$0.5DLH @ $21.000.5DLH @ $12.00$3,960,000*These costs are directly traceable to the new product line. They would not be incurred if the new product were notproduced.The company's marketing research department has recommended an introductory unit sales price of $57.00. Sellingexpenses are estimated to be $810,000 annually plus $3.60 for each unit sold. (Ignore income taxes.)Problem 7-44 Part 1Required:1. Calculate the estimated break-even point in annual unit sales of the new product if the company uses the (a) computer-assistedmanufacturing system; (b) labor-intensive production system. (Do not round intermediate calculations. Round your final answers tothe nearest whole number.)Break-Even PointComputer-assisted manufacturing systemLabor-intensive production systemunitsunits%24< Prevof 4Next >MacBook Pro24&34.6.8.EYDJK

Break Even Point (BEP): = Fixed Costs ÷ Contribution Margin per Unit Hence, we need to…

Answered: Required: 1. Calculate the estimated…

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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Please show your computations using good accounting form through excel. Thank you! Problem: Joint Cost In Department III of SAMCIS Company, a portion of the materials (a by-product) is removed further processed and sold. The Company uses the reversal cost method to account for the by-product. Data for June include: Amount of by-product removed is 2,000 units; Estimated sales price of by-product after processing further is P1.20/unit. Estimated processing cost after separation is P0.30 per unit; and estimated selling expenses is 10% of the sales price. The estimated profit margin is 5% of the sales price. What is the total cost of the by-product?
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Paste Corporation has established new plant for the production of new product called “Diazinon”. There are two different manufacturing methods available to produce Diazinon. Either by using a process or an order base method. The assembling technique won't influence the quality or deals of the item. The evaluated manufacturing expenses of the two strategies are as per the following: Process base Order base Variable manufacturing cost per unit..................... Rs14.00 Rs.17.60 Fixed manufacturing cost per year ......................Rs. 2,440,000 Rs. 1,320,000 The organization's statistical surveying office has suggested an initial selling cost of Rs.35 per unit for Diazinon. The yearly fixed selling and admin costs of the Diazinon are Rs.500, 000. The variable selling and regulatory costs are Rs. 2 per unit. Required: CM ratio and variable expenses ratio. If Paste Corporation…
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keAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Updat еВook Show Me How Print Item Relevant Range and Fixed and Variable Costs Child Play Inc. manufactures electronic toys within a relevant range of 88,400 to 142,800 toys per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule below. When computing the cost per unit, round to two decimal places. Round all other values to the nearest dollar. Toys produced 88,400 109,200 142,800 Total costs: Total variable costs $33,592 d. $ j. $ Total fixed costs 37,128 е. k. Total costs $70,720 f. $ 1. $ Cost per unit: Variable cost per unit a. $ g. $ m. Fixed cost per unit b. h. n. Total cost per unit с. $ i. $ o. $ heck My Work 4 more Check My Work uses remaining. ( Previous Next
Helpful Division of X Company makes two products, Small and Large. The company has always used Conventional Costing (for financial reporting purposes), but this period wants to try using Activity-Based Costing to make better decisions. Information related to the current period is as follows: REQUIRED: (#1) Since the company has three activities, what are the three overhead application rates the company would use for activity-based costing? (ROUND EACH RATE TO THE NEAREST CENT and be sure to label the rates appropriately.) (#2) Using activity-based costing, what was the cost to manufacture one Small unit? (#3) Using activity-based costing, what was the cost to manufacture one Large unit? (#4) Based on what you learned about activity-based costing this week, how might Helpful Division managers use the new cost information from its activity-based costing system to better manage its operations? Helpful Resource: https://www.youtube.com/watch?v=PU3U_aMbKws
SanaMolp management reports that its average delivery cycle time is 20.0 days; its average throughput time is 7.5 days; its manufacturing cycle efficiency is 0.32; its average move time is 0.2 day; and its average queue time is 4.0 days: a. What is the wait time? b. What is the process time? c. What is the inspection time? Answer with solution pls
An operations manager is deciding on the level of automation for a new process. The fixed cost for automation includes the equipment purchase price, installation, and initial spare parts. The variable costs per unit for each level of automation are primarily labor related. Each unit can be sold for $81. As in many cases, you have the default alternative of doing nothing ($0 fixed cost, $0 variable costs). Hint: For these questions, also consider the “Do Nothing” option as a viable option when making your decision. Alternative Fixed Costs Variable Costs per Unit A $100,000 $54 B $272,000 $31 C $560,000 $20 Recommended: graph each alternative with units on the x-axis and $ on the y-axis. Also, include revenue on the chart. Identify the break-even points and points of indifference.
Cost of the three alternative methods of processing work in an office is stated below:A-Manual: Total fixed cost PM=3,000Variable cost per case=48B-Semi-Automatic:Total fixed cost PM=9,000Variable cost per case=28C-Fully automatic:Total fixed cost PM=25,000Variable cost per case=8Identify the indifference and state your results. For what volume of cases it will be preferred between each of A, B and C?
1. Compare the difference between purchasing and operating of machine operated as given table (Minimum Acceptable Rate of Return, MARR = 10%). Table 4.13 Cost estimation of integrated machine option Integrated metal casting Half integrated metal casting Solely metal casting production with core knock- production with core knock- production without core out system. Machining will be out system and CNC knock-out system and CNC machining center machining center outsource (outsource) Purchasing cost, $ 500000 220000 150000 Annual maintenance, salary and operating cost (together with outsourcing cost), $ 90000 55000 10000 Annual revenue, $ 150000 75000 50000 Salvage value, $ 2000 25000 30000 Life years 5. 10
Q1: Consider a simple three-step manufacturing process as illustrated in the given figure. Assuming that demand is 1,000 units, what is the required input to meet demand? Assume that the scrap cost is $5 at process 1, $10 at process 2, and $15 at process 3. The defective rates are 3%, 5%, and 7%, respectively. Compute the total scrap cost for the given system. 1 d₂ = 3% 2 d₂ = 5% 3 d₂ = 7%
Silven Company has identified the following overhead activities, costs, and activity drivers for the coming year: Activity Expected Cost Activity Driver Activity Capacity Setting up equipment $138,000 Number of setups 120 Ordering materials 21,600 Number of orders 1,200 Machining 107,100 Machine hours 11,900 Receiving 16,740 Receiving hours 930 Silven produces two models of cell phones with the following expected activity demands: Model X 4,600 80 400 Units completed Number of setups Number of orders Machine hours Receiving hours Required: 6,800 310 Model X Model Y Model Y 9,200 40 800 5,100 620 1. Determine the total overhead assigned to each product using the four activity drivers. Total Overhead Assigned

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