The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per- unit contribution margin for each product follows. Sales price Variable cost per unit Contribution margin per unit Ny lon $156 (86) Required A Required B Required C $70 Wool $208 (98) TBC expects to incur annual fixed costs of $816,000. The relative sales mix of the products is 80 percent for Nylon and 20 percent for Wool. Required a. Determine the total number of products (units of Nylon and Wool combined) TBC must sell to earn a $120,000 profit. b. How many units each of Nylon and Wool blankets must TBC sell to earn a $120,000 profit? c. Prepare an income statement using the contribution margin format. $110 Complete this question by entering your answers in the tabs below. units Determine the total number of products (units of Nylon and Wool combined) TBC must sell to earn a $120,000 profit. Total number of products Required A Required B >
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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