Selling priceVariable costs per unit:Direct materialsDirect laborVariable overheadTotal variable cost per unitContribution margin per unitMultiple ChoiceOOThe company incurs total fixed costs of $50,000. The maximum demand for each of its productsis 600 units. Its direct material cost is $8.00 per pound. The company has only 3,000 pounds ofdirect materials available for production. Assuming the company has made optimal use of its3,000 pounds of direct material, what is the maximum amount per pound the company should bewilling to pay for additional direct materials?$14.00$20.00$15.00Product A Product B Product C$ 70$ 75$ 85$16.001640258$ 122428254$ 212032355$ 30

Production with limited factor we need to calculate contribution margin for limited key factor.…

Answered: Selling price Variable costs per unit:…

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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Winter Grow Inc. manufactures a range of heat mats. The production information for its standard heat mat is follows: Production Information for Standard Heat Mat Production Information Amount Monthly production capacity Current level of production $23 per Normal selling price per unit unit Variable manufacturing costs $5 per unit Variable selling and administrative $2 per unit expenses Fixed manufacturing costs (allocated) $4 per unit Fixed selling and administrative $2 per unit expenses (allocated) $75,000 profit $35,000 profit 25,000 units During current month, the company received an offer to sell 5,000 lights to an exporter for $13 per unit. The variable selling and administrative expenses per unit will be reduced by $1 as this is a one-off offer and some of the selling expenses would not be payable on this offer. Acceptance of this order does not affect the pricing policy in the domestic market. How much would be the profit or loss from the acceptance of this offer? $35,000 loss…
Tat Corporation produces a single product and has the following cost structure: Number of units produced each year 7,000 Variable costs per unit: Direct materials $ 77 Direct labor $ 89 Variable manufacturing overhead $ 5 Variable selling and administrative expense $ 3 Fixed costs: Fixed manufacturing overhead $532,000 Fixed selling and administrative expense $574,000 The unit product cost under variable costing is: Multiple Choice $247 per unit $171 per unit $174 per unit $169 per unit
Head-First Company plans to sell 4,200 bicycle helmets at $67 each in the coming year. Product costs include: Direct materials per helmet $29 Direct labor per helmet 8.00 Variable factory overhead per helmet 5.00 Total fixed factory overhead 19,000 Variable selling expense is a commission of $4.00 per helmet, fixed selling and administrative expense totals $29,900. Required: 1. Calculate the total variable cost per unit 2. Calculate the total fixed expense for the year. 3. Prepare a contribution margin income statement for Head-First Company for the coming year
Dinesh Bhai
uality Containers Industries Inc. has fixed costs of $368,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit AA $125 $85 $40 BB 90 40 50 The sales mix for Products AA and BB is 40% and 60%, respectively. Determine the break-even point in units of AA and BB. a. Product AA fill in the blank 1 unitsb. Product BB fill in the blank 2 units
[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 32 $ 16 24 19 10 20 22 16 12 19 14 $ 121 $ 92 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume Cane normally produces and sells 44,000 Betas per year. What is the financial dvantage (disadvantage) of discontinuing the Beta product line?
Skolnick Corporation has provided the following information: Cost per Unit Direct materials $ 5.20 Direct labor $ 4.70 Variable manufacturing overhead $ 1.80 Cost per Period Fixed manufacturing overhead $ 126,000 Sales commissions $ 1.40 Variable administrative expense $ 0.60 Cost per Period Fixed selling and administrative expense $39,600 Selling price $20.6 per unit. The value of break-even point sales is:
Jarvis Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 35,000 units of Product E are as follows: Variable costs: Direct materials $3.00 Direct labor 1.25 Factory overhead 0.75 Selling and administrative expenses 3.00 Total $8.00 Fixed costs: Factory overhead $50,000 Selling and administrative expenses 20,000 Jarvis desires a profit equal to a 14% rate of return on invested assets of $450,000. a. Determine the amount of desired profit from the production and sale of Product E. $ 63,000 b. Determine the total costs and the cost amount per unit for the production and sale of 35,000 units of Product E. Total manufacturing costs 350,000 V Cost amount per unit 10 c. Determine the markup percentage for Product E. 18 V % d. Determine the selling price of Product E. Round your answer to two decimal places.
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Calico Joe Fabrics sells a single product. The company estimates total fixed costs at $360,000 with demand, price, and total variable costs as follows: Units Demanded 73,000 83,000 93,000 103,000 113,000 Unit Price $31 O $28 O $27 O $30 $29 $31 30 29 28 27 Total Variable Costs $1,606,000 1,826,000 2,046,000 2,266,000 2,486,000 What price should Calico Joe Fabrics charge to maximize profits?
FRANCORP sells two products. Products M N Selling price per unit $80 $60 Less variable expenses per unit $46 $40 Contribution margin per unit $34 $20 Current demand per week (units) 2,100 2,400 Processing time required on machine XYZ per unit 2 min. 1 min. Machine XYZ is a constrained resource and is being used at 100% capacity. Machine XYZ has a capacity of 3,000 minutes per week. Assuming FRANCORP wants to maximize its total contribution margin, how much of each product should it produce? a. 2400 units of N and 300 units of M b. 300 units of N and 2100 units of M c. 1200 units of N and 1050 units of M d. 2400 units of N and 0 units of M

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