Suppose the company can sell unlimited quantities of any of the three products. If a customer wanted to purchase 500 unitsProduct C, what would the minimum sale price per unit be for this order?Minimum sale price$per unit Shamrock Co. manufactures three types of computer desks. The income statement for the three products and the whole company isshown below:SalesVariable costsFixed costsTotal costsOperating income (loss)Product A Product B Product C$110,000$135,00075,000125,000$88,00046,00025,20071,200$16,80018,00093,000$17,00018,000143,000$(8,000)Total$333,000246,00061,200307.200$25,800The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machine hours for eachproduct are 7 hours for Product A, 5 hours for Product B, and 5 hours for Product C. Fixed costs are allocated based on machine hours.

The process of deciding whether to produce a product or service in-house or to acquire it from an…

shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A $88,000 46,000 25,200 71,200 $16,800 Product B $110,000 Product C $135,000 125,000 18,000 143,000 75,000 18,000 93,000 $17,000 $(8,000) Total $333,000 246,000 61,200 307,200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machim

shown below: Sales Variable costs Fixed costs Total costs Operating income (loss) Product A $88,000 46,000 25,200 71,200 $16,800 Product B $110,000 Product C $135,000 125,000 18,000 143,000 75,000 18,000 93,000 $17,000 $(8,000) Total $333,000 246,000 61,200 307,200 $25,800 The company produces 1.000 units of each product. The company's capacity is 17,000 machine hours. The machim

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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4) Assume sales and demand are 1,000 units, how much will the company make on the sale of the next two units if demand expands to 1,002 units. Discuss which amounts on the income statement will change if the company makes and sells two more units. Please discuss your calculations and reference to Figure 1.
The single-column CVP income statements shown below are available for Wildhorse Company and Blossom Company, Sales Variable costs Contribution margin Fixed costs Net income Wildhorse Wildhorse Co. Blossom $495,000 239,000 256,000 1000 156,000 $100,000 Blossom Co. Degree of Operating Leverage $495,000 (a1) Compute the degree of operating leverage for each company. (Round answers to 2 decimal places, e.g. 1.15.) $ 51,000 444,000 344,000 $100,000 (b) Assuming that sales revenue increases by 10% (due to a 10% increase in the number of units sold), prepare a single-plumn CVP income statement for each company. Wildhorse Company $ tA $ Blossom Company
Sales (30,000units) P 150,000 Variable costs 100,800 Contribution margin P 49, 200 Fixed manufacturing costs 24,000 Operating income P 25,200 Interest 18,000 Earnings before taxes P 7,200 Taxes (at 31%) 2,160 Net income P 5,040 Shares outstanding 600 The firms break-even point is a.…
A company shows you the following data: Sales Costs: Variable costs Fixed costs Total costs Income (loss) Product Data O $20,000 decrease O $30,000 increase O $30,000 decrease O $20,000 increase F Product G Total $300,000 $210,000 $340,000 $850,000 $180,000 $180,000 $220,000 $580,000 50,000 50,000 40,000 140,000 $230,000 $230,000 $260,000 $720,000 $ 70,000 $(20,000) $ 80,000 $130,000 Management is considering the discontinuance of the manufacture and sale of Product G at the beginning of the current year. The discontinuance would have no effect on the total fixed costs and expenses or on the sales of Products F and H. How much would net income for the current year change if they discontinue Product G?
Rings company has three product lines A, B and C. The following financial information is available:
Tackett Company sells a single product for $75 cach. the variable costs are $45 cach. Total fixed costs are $225,600. How many units must the company sell to achieve operating income of $90,000? O A. 7013 O B. 10520 O C. 6230 O D.4208
Eastwick produces and sells three products. Last month's results are as follows: P1 P2 P3 Revenues $ 270,000 $ 370,000 $ 370,000 Variable costs 57,000 220,000 137,100 Fixed costs total $370,000. What sales volume would generate an operating profit of $235,000? (Assume the current product mix.)