Stuart Company Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below: Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production $40,000 SG&A $60,000 Estimated volume 20,000 units Refer to Stuart Company. What is Stuart's projected degree of operating leverage for the current year? Select one: a. 2.25 b. 1.67 c. 3.75 d. 1.80

Stuart Company Stuart Company manufactures a single product. Each unit sells for $15. The firm's projected costs are listed below: Variable costs per unit: Production $5 SG&A $1 Fixed costs: Production $40,000 SG&A $60,000 Estimated volume 20,000 units Refer to Stuart Company. What is Stuart's projected degree of operating leverage for the current year? Select one: a. 2.25 b. 1.67 c. 3.75 d. 1.80

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

To manufacture 15 000 units the total variable cost is 48,000. the fixed costs total is 27,000. If the company wants to make 40,000 profit, how much should the company sell the items for? a. $7.67 b. $2.33 c. $8.93 d. $5.00
Subject:- Accounting
Question 1. A company wants to produce a new product. In order to produce this product, the fixed cost is $40,000 and the variable cost is $15 per product. a. Assume that the purchase price for the product is $55, and the estimated demand for this product is 2000 units. Then, what is your suggestion to the company? To produce or not, and if yes, how many? [provide your reasonings] b. Answer part (a) but with an estimated demand of 900 units. [provide your reasonings] c. Assume that demand depends on the purchase price so that it would be 1000 and 2000 if the purchase price is $100 and $55 respectively. Then, what purchase price do you suggest to the company? [provide your reasonings]
Cantor Products sells a product for $81 Varlable costs per unit are $44, and monthly fxed costs are $140.600 21 a. What is the break-even point in units? unids A What unit sales would be required to eam a target profit of $310,800? ratal Resied Sales units FAssume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 declmal places.) Ceye of Operating Leverae
Determinant Company is a price−taker and uses a target−pricingapproach. Refer to the following information: Production volume 602,000 units per year Market price $34 per unit Desired operating income 17% of total assets Total assets $13,800,000 What is the target full product cost in total for the year? Assume all units produced are sold. Question content area bottom Part 1 A. $13,800,000 B. $18,122,000 C. $2,346,000 D.$ 102, 340
Company produces three products with the following information: Selling price per unit Variable cost per unit Machine-hours per unit (MH/unit) Small $17 $8 2 Q) What is the maximum monthly rent the " optimal use of their own machine)? A) $ Product Medium $19 $10 3 Large $26 $12 4 The company has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000. The demand for each of the products is 2,500 units per month. The company's goal is to maximize its profitability. Suppose the Company can rent a machine that will provide an additional 1,360 machine-hours per month. company should be willing to pay for this machine (assuming they've made
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Sales Price Variable Cost Product per Unit per Unit $30 AA $50 BB 35 10 CC 25 15 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $253,500 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $ B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number of Units per Product AA BB C. What is their break-even point in sales dollars? Break-even point in sales $ D. Using an income statement format, prove that this is the break-even point. If an amount is zero, enter "0". Income Statement Sales Product AA Product BB Product CC Total Sales Variable Costs Product AA Product BB Product CC Total Variable Costs $ Contribution Margin Fixed Costs Net Income
For XYZ Company, how many units of their product would have to be sold to yield a target operating income of $46,000 for the financial year ending 2021, assuming variable costs are $35 per unit, total fixed costs are $4,000, and the unit selling price is $60? O a. 1,800 units O b. 2,000 units Oc. 160 units O d. 1,429 units E PAGE FINISH ATTEMPT ... re to search W A GD 4 d4) ENG O go) 19:12 07-04-2021 hp ort sc delete home end pg up 96 & 8 - backspace num lock R 8 A home F G н K enter 5 0 B M pause ↑ shift 2 end alt ctrl ins
A projected income statement of Hailwork’s company for the coming year follows: Sales $506300 |Total Variable Cost 170865 Contribution Margin ? Total Fixed Cost 175000 Operating Income ? Compute contribution margin and contribution margin ratio Compute the Operating Income How much revenue must be earned in order to breakeven What is the effect on contribution margin ratio if the unit selling price and unit variable cost increase by 10 percent each?
Morris Industries manufactures and sells three products (AA, BB, and CC). The sales price and unit variable cost for the three products are as follows: Product Sales Priceper Unit Variable Costper Unit AA $45 $30 BB 35 10 CC 35 5 Their sales mix is reflected as a ratio of 5:3:2. Annual fixed costs shared by the three products are $189,000 per year. A. What are total variable costs for Morris with their current product mix? Total variable costs $fill in the blank b16d34fd6fb7fb3_1 B. Calculate the number of units of each product that will need to be sold in order for Morris to break even. Number ofUnits per Product AA fill in the blank BB fill in the blank CC fill in the blank C. What is their break-even point in sales dollars? Break-even point in sales $fill in the blank
A firm manufactures a product that sells for $25 per unit. Variable cost per unit is $2 and fixed cost per period is $1840. Capacity per period is 2000 units. (a) Develop an algebraic statement for the revenue function and the cost function. (b) Determine the number of units required to be sold to break even. (c) Compute the break-even point as a percent of capacity. (d) Compute the break-even point in sales dollars.
The following is yearly information on two main sources for the company profit: Row material Labor cost Unit made Demand price cost PRODUCT A $30 $100 3000 1850 250 PRODUCT B $45 $78 2500 2100 170 The fixed cost is estimated to be $1000 annually. Based on the above information find the following: 1- The company yearly profit 2- Use goal seek to find the following a. At what PRODUCT B demand both products will generate the same revenuc? b. How much they should produce from each Product A and B, to reach a profit of $500,00, if the demand of them is equal to .75 of the production and Product A should be 50% of Product B. 3- If the company will sell the same amount from Product A and Product B which represents 65% for Product A and 76% for Production B, how much they should produce from both the get profit of $750,000