Please need answer the accounting question Robin Me Blind, Inc. desires to sell a sufficient quantity of her newmagazine (Government Worker) to earn a profit of $80,000. Shebelieves in market-based transfer pricing. If the magazine salesprice is $20, the variable cost per magazine is $12, total fixed costsare $610,000, gold is selling at $1350 per ounce, and Hood Collegeis operating at full capacity, how many units must Bonita Bananasell to earn the $80,000 profit?

Step 1: Introduction to the Sales of a Target ProfitIn business, the cost-volume-profit analysis…

Answered: Robin Me Blind, Inc. desires to sell a…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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4. Pacific Decor, Inc, designs, manufactures,and sells contemporary wood furniture. Ling Li is a furniture designer for Pacific. Li has spent much ofthe past month working on the design of a high-end dining room table. The design has been well-received byJose Alvarez, the product development manager. However, Alvarez wants to make sure that the table canbe priced competitively. Amy Hoover, Pacific's cost accountant, presents Alvarez with the following costdata for the expected production of 200 tables: Design cost $ 5,000 Direct materials 120,000 Direct manufacturing labor Variable manufacturing overhead Fixed manufacturing overhead 142,000 64,000 46,500 Marketing 15,000
Adorable Face is considering a new line of lipstick products. They would like to know if it will pay off. Estimated fixed costs are $250,000, and the manufacturing, materials, shipping and packaging cost (variable cost) per lipstick is $1.00. If they sell 80,000 lipsticks, what price should they charge (maintaining the $100,000 target profit and $200,000 advertising budget)?
A buyer from another country offered to purchase 2,000 units of product for $ 2.50 per unit. The normal selling price is $ 3.00 per unit. The company's regular variable costs of $ 1.50 per unit would not change, however overall fixed costs would increase by $ 500 if his order is accepted. How much will net income increase if this special order is accepted? Multiple Choice $ 2,500. $ 2,000. $1,500. $ 3,000. $ 1,850.
McKenzie Company can sell 20,000 pounds of product for $10 per pound. The company can also process this product further and sell it for $17 per pound at a cost of $110,000. Should McKenzie sell product now or process it further and then sell it? What is the effect of the action? Group of answer choices Sell now, the company will be better off by $90,000. Process further, the company will be better off by $30,000. Sell now, the company will be better off by $140,000. Process further, the company will be better off by $140,000. Sell now, the company will be better off by $30,000.
Should Shoecraft get into the slipper business? House slippers sales will be worth $122.0 million next care. SC can make house slippers for $20.22 per pair in variable costs + relevant fixed costs of $1,810,000. Before it will launch this venture, SC must 0roject a total profit of AT LEAST $440,000. If SC sells house slippers for $27.26 per pair, what would be SC's Breakevent Market Share While Meeting the Project Target for this venture. (answer as percent, 1 decimal place / a tenth)
Thomas Company buys and sells a product that has a variable cost per unit of $14. Thomas' fixed costs amount to $66,000. The product sells for $18 each. Thomas currently expects to make and sell 23,000 units. Management believes that if the price per unit is lowered by one dollar, the Company could sell an additional 3,000 units of product. If Thomas implements the lower price strategy, profitability will Multiple Choice O increase by $5,600. decrease by $3,000. decrease by $14,000. increase by $17,000.
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 438.00 per unit Variable costs 198.00 per unit Fixed costs 680,000 per year Assume that the projected number of units sold for the year is 4,150. Consider requirements (b), (c), and (d) independently of each other. Required: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much? omplete this question by entering your answers in the tabs below. Required A Required B…
Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling 44,000 shelves for $32 each. Cutrate Furniture approached Jansen about buying 1,200 shelves for bookcases it is building and is willing to pay $26 for each shelf. No packaging will be required for the bulk order. Jansen usually packages shelves for Home Depot at a price of $1.50 per shell. The $1.50 per-shelf cost is included in the unit variable cost of $27, with annual fixed costs of $320.000. However, the $130 packaging cost will not apply in this case. The fixed costs will be unaffected by the special order and the company has the capacity to accept the order. Based on this information, what would be the profit if Jansen accepts the special order? A. Profits will decrease by $1,200. B. Profits will increase by $31,200. C. Profits will increase by $600. D. Profits will increase by $7,200.
Shelby Industries has a capacity to produce 45.000 oak shelves per year and is currently selling 40,000 shelves for $32 each. Martin Hardwoods has approached Shelby about buying 1,200 shelves for a new project and is willing to pay $26 each. The shelves can be packaged in bulk; this saves Shelby $1.50 per shelf compared to the normal packaging cost. Shelves have a unit variable cost of $27 with fixed costs of $350,000. Because the shelves dont require packaging, the unit variable costs for the special order will drop from $27 per shelf to $25.50 per shelf. Shelby has enough idle capacity to accept the contract. What is the minimum price per shelf that Shelby should accept for this special order?
The marketing manager of Perez Corporation has determined that a market exists for a telephone with a sales price of $22 per unit. The production manager estimates the annual fixed costs of producing between 40,800 and 81,700 telephones would be $374,100. Required Assume that Perez desires to earn a $133,000 profit from the phone sales. How much can Perez afford to spend on variable cost per unit if production and sales equal 46,100 phones? Variable cost per unit
Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 433.00 per unit Variable costs 193.00 per unit Fixed costs 645,000 per year Assume that the projected number of units sold for the year is 3,900. Consider requirements (b), (c), and (d) independently of each other. Questions: What will the operating profit be? What is the impact on operating profit if the sales price decreases by 20 percent? Increases by 10 percent? What is the impact on operating profit if variable costs per unit decrease by 10 percent? Increase by 20 percent? Suppose that fixed costs for the year are 20 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost changes have on operating profit for the year? Will profit go up? Down? By how much?
The Can Division of Sheffield Corp. manufactures and sells recyclable containers externally for $0.97 per container. Its unit variable costs and unit fixed costs are $0.24 and $0.11, respectively. The Packaging Division wants to purchase 50,000 containers at $0.36 per unit. Selling internally will save $0.02 a container.Assuming that the Can Division has sufficient capacity, what is the minimum transfer price it should accept? a.$0.24 b.$0.36 c.$0.34 d.$0.22

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