Problem 7The Moore Company had the following revenues and costs per unit based on the production and sale of 30,000units:Selling PriceDirect MaterialsDirect LaborVariable manufacturing OverheadFixed Manufacturing OverheadSales CommissionsSales SalariesAdministrative Salaries$ 75 per unit$ 15 per unit$ 25 per unitper unit$9$ 8 per unit$5 per unit$ 4 per unit$ 11 per unitTheir present plant capacity is 50,000 units per year, which can be increased in increments of 10,000 units at acost of $50,000 per increment.Required:How many units would the company have to produce and sell if they desired net income of $ 220,000? Problem 7 The Moore Company had the following revenues and costs per unit based on the production and sale of 30,000 units: Selling Price Direct Materials Direct Labor Variable manufacturing Overhead Fixed ManufacturingOverhead Sales Commissions Sales Salaries Administrative Salaries $75 per unit $15 per unit $25 per unit $9 per unit $8 per unit $5 per unit $4 per unit $11 per unit Their present plant capacity is 50,000 units per year, which canbe increased in increments of 10,000 units at a cost of $50,000 per increment. Required: How many units would the company have to produce and sell if they desired net income of $220,000 ?

Desired net income refers to the specific profit amount a company aims to achieve within a defined…

Answered: Required: How many units would the…

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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Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560 units of the product which represent £143,400. Total fixed costs equal £66,920 and total contribution equals £66,920. Required: a) Considering this information, is Diversity Ltd. selling a profitable amount of its product Star and which would be your advice for the company? Which is the price per unit at which Diversity Ltd. is selling its product? Explain your answer in detail. b) Consider that, after an increase in the market demand of product Star, Diversity Ltd. sells 25% more units of product Star. In this new situation, is Diversity Ltd. selling a profitable amount of its product Star? Explain your answer in detail. c) Draw a graph related to your previous answers in a) and b). Consider the information from the graph, which would be the financial situation of Diversity Ltd. if sales decrease in more than 25%?
Hixson Company manufactures and sells one product for $34 per unit. The company maintains no beginning or ending inventories and its relevant range of production is 20,000 units to 30,000 units. When Hixson produces and sells 25,000 units, its unit costs are as follows: Amount Per Unit Direct materials $8.00 $5.00 $1.00 $6.00 $3.50 $2.50 $ 4.00 $1.00 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense
How do I find the dollar sales volume to produce an income of 864,000 before taxes when the maximum capacity with present facilities = 40,000 units, total fixed costs per period = 468,000, variable cost per unit = 128, and sales price per unit = 212?
Subject: Cost managemet & accounting PQ – 2*The following data relates to M/s. Zubair Co. for the month of August 2018 ( who maintains Job Order Cost System ) .DATAa) Material purchased on account Rs. 145,000b) Material requisitioned and Factory Labour usedMaterial Factory LabourJob No. 201 Rs. 12,000 Rs. 20,000Job No. 202 Rs. 8,000 Rs. 15,000Job No. 203 Rs. 25,400 Rs. 13,500Job No. 204 Rs. 16,600 Rs. 21,500Job No. 205 Rs. 15,000 Rs. 8,200Job No. 206 Rs. 9,000 Rs. 4,600For general factory use Rs. 5,000 Rs. 8,000c) Factory overhead cost incurred on account Rs. 70,800d) Depreciation of Machinery Rs. 10,000e) The Factory overhead rate is 110 % of direct labour cost.f) Job completed: No. 201, 203, 204 and 206.g) Job No. 201, 203 and 204 were shipped and customers were billed for Rs. 104,000, Rs. 105,000 and Rs. 106,000. REQUIRED:ii) Prepare Accounts in Ledger of the Company for the Accounts, Work-in-Process and Finished Goods.
A company requires $1400000 is sales to meet its net income target. Its contribution margin is 50% and fixed costs are $300000. What is the company's target net income?
Use the information provided below to answer the following questions independently: 3.2.1 If Kempster Limited decides on a profit objective of R400 000, calculate the target sales volume. 3.2.2 Calculate the total Marginal Income and Profit/Loss if the company decides to reduce the selling price to R28 per unit. INFORMATION Kempster Limited expects to incur the following costs to produce and sell 20 000 units of its product at R30 each: Variable manufacturing cost R14 per unit Fixed manufacturing cost R100 000 Variable marketing cost 20% of sales Fixed marketing and administrative cost R40 000
Assume the following (1) selling price per unit-$25, (2) variable expense per unit = $13, (3) unit sales=2,580, and (4) total fixed expenses = $25,000. Given these four assumptions, net operating income must be: Multiple Choice $8,540. O $39,500. O $27,580 $5.960.
Penny Corporation desires to earn target net income of $15,000. If the selling price per unit is $51, unit variable cost is $31, and total fixed costs are $685,000, the number of units that the company must sell to earn its target net income is
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If the food cost is $250,000 and the total labor cost is $300,000 and sales are $1,000,000, what is the prime cost in $?
A company would like to determine various costs and points to aid them in deciding whether to expand or not. If you are given the following information, compute the required amounts and / or figures.Selling price / unit = P100 Variable cost / unit = P70Annual fixed cost = P500,000 Compute 5. Sales in units to earn a profit of 10% of sales.
The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 7,500 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50 and that a cost of P1 per unit will be saved from the transfer. _____________________5. The Selling Division’s unit sales price is P20 and its unit variable cost is P10. Its capacity is 10,000 units. Fixed costs per unit are P4. Current outside sales is 10,000 units. What is the maximum transfer price that the Purchasing Division would be willing to accept if 4,000 units will be sold to the Purchasing Division? Assume that the Purchasing Division can buy the same from outside market at P18.50. _____________________6. The Selling Division’s unit sales price is P19 and its unit variable…

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Required: How many units would the company have to produce and sell if they desired net income of $ 220,000?