Samy Inc. operated at its normal capacity during the current year, producing 75,000 units of its single product. Sales totalled 65,000units at an average price of $20 per unit. Variable cost of goods sold amounted to $7 per unit, and sales commissions were paid out at$5 per unit sold. Fixed product costs, incurred uniformly throughout the year, amounted to $203,000 and fixed period costs, incurreduniformly, amounted to $33,000 per quarter.Required:1. Compute Samy's break-even point in sales dollars for the current year. (Do not round intermediate calculations. Round youranswer to the nearest whole number.)× Answer is complete but not entirely correct.Break-even point in sales indollars$ 837,500 x2. If Samy's fixed product costs unexpectedly increase by 15%, what is the new unit selling price that would yield the same break-evensales as before the cost increase? (Do not round intermediate calculations and round your answer to 2 decimal places.)Answer is complete and correct.New salesprice$ 20.73per unit

First, we need to calculate the total fixed costs. Fixed costs are costs that do not change with the…

Answered: Samy Inc. operated at its normal…

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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Crane Company reports the following operating results for the month of August: sales $392,000 (4,900 units), variable costs $254,000, and fixed costs $91,000. Management is considering the following independent courses of action to increase net income. 1. 2. Increase the unit selling price by 15% with no change in total variable Reduce variable costs to 68% of sales while holding fixed costs, quant Compute the net income to be earned under each alternative. 1. Net income 2. Net income $ A AA Which course of action will produce the higher net income? = SUPPORT
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $43,000 for Division A. Division B had a contribution margin ratio of 30% and its sales were $240,000. Net operating income for the company was $35,200 and traceable fixed expenses were $50,400. Corbel Corporation's common fixed expenses were:
During its first year of operations, Silverman Company paid $9,160 for direct materials and $9,700 for production workers' wages. Lease payments and utilities on the production facilities amounted to $8,700 while general, selling, and administrative expenses totaled $4,200. The company produced 5,300 units and sold 3,200 units at a price of $7.70 a unit. What is Silverman's cost of goods sold for the year? Multiple Choice O $27,560 $13,923 $16,640 $23,060
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Cullumber Corporation has collected the following information after its first year of sales. Sales were $1,440,000 on 120,000 units, selling expenses $210,000 (40% variable and 60% fixed), direct materials $504,000, direct labor $169,400, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $382.000 ( 70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year. (a) Compute (1) the contribution margin for the current year and the projected year, and (2) the fixed costs for the current year. (Assume that fixed costs will remain the same in the projected year.) (1) (2) Contribution margin for current year Contribution margin for projected year Fixed Costs $ I $
Cathy Company has two divisions, L and M. During July, Division L had sales of $80,000, a contribution margin ratio of 30%, and a segment margin of $10,000. The company as-a-whole had sales of $200,000, a contribution margin ratio of 40%, and a segment margin for the two divisions totaling $30,000. If operating income for the company was $15,000 for the month, the traceable fixed costs in Division M must have been: O $56,000 $36,000 $15,000 O $20,000 O $50,000
Ogilvy Company manufactures and sells one product. The following information pertains to each of the company’s first three years of operations: Variable cost per unit: Direct materials $ 18 Fixed costs per year: Direct labor $ 682,000 Fixed manufacturing overhead $ 824,000 Fixed selling and administrative expenses $ 220,000 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first year of operations, Ogilvy produced 62,000 units and sold 62,000 units. During its second year of operations, it produced 62,000 units and sold 59,800 units. In its third year, Ogilvy produced 62,000 units and sold 64,200 units. The selling price of the company’s product is $46 per unit. Assume the company uses super-variable costing: Compute the unit product cost for Year 1, Year 2, and Year 3. Prepare an income statement for Year 1, Year 2, and Year 3.
ABC Corporation has sold 1,000 units of product in a month and provided the following contribution format income statement. Assume that the following information is within the relevant range.Total sales revenue 50,000 Total variable expenses 32,000 Contribution margin 18,000 Fixed expenses $ 12,000 Net operating income 6,000 The break-even point in unit sales is closest to:
The normal capacity of an entity is 350 000 units per annum. The raw material cost is R220 per unit and direct labour is R250 per unit. 9. Variable production overheads are R60 per unit and fixed production overheads incurred amounts to R5 250 000. The closing balance of finished goods is 9 500 units (assume there is no opening balance). Which amount is the correct cost of sales figure if the actual production was 280 000 units for the year? 1. R145 000 000 2. R146 500 000 3. R147 422 500 4. R148 472 500

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