The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 5.20 Variable manufacturing cost per Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expernses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales unit 6.60 P240,000 900,000 30%
The Bayblade, Inc. started operations in 2003 with an expected production of 120,000 units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The following data were made available: P25.40 5.20 Variable manufacturing cost per Fixed manufacturing cost per unit based on normal capacity Variable selling and administrative cost per unit Annual fixed selling and administrative expernses Plant assets (fixed capital) used in operations Expected ratio of current assets to projected sales unit 6.60 P240,000 900,000 30%
Chapter1: Financial Statements And Business Decisions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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![Required: Compute the selling price per unit that will meet the expected results based on the
The company is projecting a selling price that would give them, a 25% return on
investment.
above data. Show proof of answer.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbcc3bb9-15f1-49ef-bbbe-203dce323898%2F62df0e19-65c5-4e45-8f91-89e1aa40e99a%2F3grkt8v_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required: Compute the selling price per unit that will meet the expected results based on the
The company is projecting a selling price that would give them, a 25% return on
investment.
above data. Show proof of answer.
![The Bayblade, Inc. started operations in 2003 with an expected production of 120,000
units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The
following data were made available:
Variable manufacturing cost per unit
Fixed manufacturing cost per unit based on normal capacity
Variable selling and administrative cost per unit
Annual fixed selling and administrative expenses
Plant assets (fixed capital) used in operations
Expected ratio of current assets to projected sales
P25.40
5.20
6.60
P240,000
900,000
30%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdbcc3bb9-15f1-49ef-bbbe-203dce323898%2F62df0e19-65c5-4e45-8f91-89e1aa40e99a%2Fj3ps6ko_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The Bayblade, Inc. started operations in 2003 with an expected production of 120,000
units and sales volume of 110,000 units. It has a normal operating capacity of 100,000 units. The
following data were made available:
Variable manufacturing cost per unit
Fixed manufacturing cost per unit based on normal capacity
Variable selling and administrative cost per unit
Annual fixed selling and administrative expenses
Plant assets (fixed capital) used in operations
Expected ratio of current assets to projected sales
P25.40
5.20
6.60
P240,000
900,000
30%
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