SafeNow sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5.20 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pa are $255,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 75,000 pa SafeNow Flexible Budget Budget Amounts Per Unit Units 45,000 75,000 40,000 15

SafeNow sells its main product, ergonomic mouse pads, for $11 each. Its variable cost is $5.20 per pad. Fixed costs are $205,000 per month for volumes up to 65,000 pads. Above 65,000 pa are $255,000. Prepare a monthly flexible budget for the product, showing sales revenue, variable costs, fixed costs, and operating income for volume levels of 40,000, 45,000, and 75,000 pa SafeNow Flexible Budget Budget Amounts Per Unit Units 45,000 75,000 40,000 15

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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A producer of felt-tip pens has received a forecast of demand of 31,000 pens for the coming month from its marketing department. Fixed costs of $21,000 per month are allocated to the felt-tip operation, and variable costs are 25 cents per pen. a. Find the break-even quantity if-pens sell for $1 each. (Round your answer to the next whole number.) QBEP Answer is complete and correct. Price 28,000 units b. At what price must pens be sold to obtain a monthly profit of $18,000, assuming that estimated demand materializes? (Round your answer to 2 decimal places.) X Answer is not complete.
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Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,900 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Suppose it sells each birdbath for $24. Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. Complete the contribution margin income statement assuming that Morning Dove produces and sells 1,800 units.
Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $12.41 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $551,855 per year. Administrative cost (all fixed) totals $419,190. Comer expects to sell 247,000 strings of light next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3
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