Sweet Nature Corporation manufactures "Sweet 'n Salty" trail mix. Last month, the company produced and sold 800,000 units and sold them at a price of $4 each. Related information appears below: C. Item Utilities for factory Advertising (based on number of website page views) Costs for product packaging Chocolate pieces and dried fruit Wages for factory cleaning staff Rent of factory and equipment Salaries for office staff Wages for production crew Insurance on the factory Nuts (e.g. peanuts, cashews and almonds) Total Cost $17,000 22,000 125,000 152,800 275,000 350,000 475,000 486,000 18,000 878,950 If the company had only sold 550,000 units last month, wh dollar amount would it report for cost of goods sold as well as ending inventory in its financial statements? Round your final answer for each to the nearest dollar. d. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit (rounded to the nearest penny) assuming 800,000 units were produced and sold as well as the total fixed costs. What is the break-even point (rounded to the nearest whole unit)?
Sweet Nature Corporation manufactures "Sweet 'n Salty" trail mix. Last month, the company produced and sold 800,000 units and sold them at a price of $4 each. Related information appears below: C. Item Utilities for factory Advertising (based on number of website page views) Costs for product packaging Chocolate pieces and dried fruit Wages for factory cleaning staff Rent of factory and equipment Salaries for office staff Wages for production crew Insurance on the factory Nuts (e.g. peanuts, cashews and almonds) Total Cost $17,000 22,000 125,000 152,800 275,000 350,000 475,000 486,000 18,000 878,950 If the company had only sold 550,000 units last month, wh dollar amount would it report for cost of goods sold as well as ending inventory in its financial statements? Round your final answer for each to the nearest dollar. d. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit (rounded to the nearest penny) assuming 800,000 units were produced and sold as well as the total fixed costs. What is the break-even point (rounded to the nearest whole unit)?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
please solve both parts c and d within 30 minutes.
Transcribed Image Text:Sweet Nature Corporation manufactures "Sweet 'n Salty" trail mix. Last month, the company produced and sold
800,000 units and sold them at a price of $4 each. Related information appears below:
C.
Item
Utilities for factory
Advertising (based on number of website page views)
Costs for product packaging
Chocolate pieces and dried fruit
Wages for factory cleaning staff
Rent of factory and equipment
Salaries for office staff
Wages for production crew
Insurance on the factory
Nuts (e.g. peanuts, cashews and almonds)
Total Cost
$17,000
22,000
125,000
152,800
275,000
350,000
475,000
486,000
18,000
878,950
If the company had only sold 550,000 units last month, wh dollar amount would it report for cost of goods sold
as well as ending inventory in its financial statements? Round your final answer for each to the nearest dollar.
d. Identify all costs as either a variable cost (VC) or a fixed cost (FC) then calculate the variable cost per unit
(rounded to the nearest penny) assuming 800,000 units were produced and sold as well as the total fixed costs.
What is the break-even point (rounded to the nearest whole unit)?
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