The Chowning Company manufactures ear buds that sell for $20 a pair. The variable cost of each set of ear buds is $6.35. The company incurs monthly fixed costs of $10,000. If Chowning makes 1,200 sets of ear buds in February, what is the total cost?
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- Terra Nova, Inc. has the capacity to rewire 300 vehicle wiring harnesses per day. The expected number of vehicles needing to be rewired per day is 225. The company is paid $26 for each wiring harness rewired. The fixed cost of renting the rewiring equipment is $250 per day. The vehicle bays space rents for $150 per day. The cost of materials is $18 per vehicle and labor costs $3 per wiring harness. What is the break-even number of wiring harnesses rewired per day?The Mighty Music Company produces and sells a desktop speaker for $200. The company has the capacity to produce 60,000 speakers each period. At capacity, the costs assigned to each unit are as follows: Unit-level costs Product-level costs Facility-level costs The company has received a special order for 11,000 speakers. If this order is accepted, the company will have to spend $20,000 on additional costs. Assuming that no sales to regular customers will be lost if the order is accepted, at what selling price will the company be indifferent between accepting and rejecting the special order? Multiple Choice O O $96.82 $146.82 $104.32 $95 $25 $15 $107.32Maple Incorporated manufactures a product that costs $33 per unit plus $45,000 in fixed costs each month. Maple currently sells 4,000 of these units per month for $63 each. If Maple leased a machine for $12,000 a month, it could add features to the product that would allow it to increase the selling price. It would cost an additional $8 per unit to add these features. How much would Maple have to charge for the product with additional features to make it worthwhile to lease the machine?
- A local toolmaker makes the best hammers on the market. The head of the hammer costs $16.89 and the handle costs $5.52. It takes 1.4 minutes to assemble the hammer and the hourly cost is $85 for assembly time. The company has fixed operating costs of $20371 per month. They sell the hammers for three times their total variable cost. The company wants to make a monthly profit of $5553. How many hammers must they sell? Round to the nearest whole numberABC Co. uses one raw material type in its manufacturing process. It needs 3,750 kilos of its material each month. It incurs 500 each time when making and receiving orders. Annual carrying cost per unit costs 15 in warehousing and 5 in financing cost. If XYZ purchases 1,000 kg each time, how much lower would the annual cost be if XYZ would now follow the EOQ model?Maple Inc. manufactures a product that costs $25 per unit plus $43,000 in fixed costs each month. Maple currently sells 6,000 of these units per month for $47 each. If Maple leased a machine for $12,000 a month, it could add features to the product that would allow it to sell for $53 each. It would cost an additional $9 per unit to add these features. How much would Maple's profit be affected if it leased the machine and added features to its product? Multiple Choice Increase $252,000 Decrease $252,000 Increase $6,000 Decrease $30,000
- Zen Inc. uses one raw material type in its manufacturing process. It needs 3,750 kilos of this material each month. It incurs P500 each time when making and receiving orders. Annual carrying cost per unit costs P15 in warehousing and P5 in financing costs. If Zen purchases 1,000 kilograms each time, how much lower would the annual cost be if Zen would now follow the EOQ model?Acme Inc. manufactures and sells widgets. Acme Inc. sells widgets for $15 each. Acme Inc. uses 3 gizmos for each widget. Gizmos cost $2 each. In December, Acme sold 300 widgets. Acme also pays rent of $500 per month. please show work. A.) What is Acme Inc.'s contribution margin per unit? B.) What is Acme Inc.'s contirbution margin ratio? C.) Assuming the about information is all revenue and expenses for scme, what is December's net income? D.) Determine the fixed cost give the following information: Lowest level of activity- 200 units at a total cost of $600 Highest level of activity- 800 units at a total cost of $1,800 Fixed cost =Lila battle has determined that the annual demand for number 6 screws is 100,000 screws. Lila, who works in her brother’s hardware store, is in charge of purchasing. She estimates that it costs $10 every time an order is placed. This cost includes her wages, the cost of forms used in the placing order, and so on. Furthermore, she estimates that the cost of carrying one screw in theinventory for an year is one-half of one cent. Assume that the demand is constant throughout the year. (a)How many number 6 screws should Lila order at a time if she wishes to minimize total inventory cost? (b)How many orders per year would be placed? What would the annual ordering cost be? (c)What would the average inventory be? What would the annual holding cost be?
- Trident Ltd makes designer gold bracelets. Their annual costs include shop rent of $12,500, salaries for two jewellers of $118,000, design software costs of $10,000, and other overhead costs of $13,000. An average bracelet is priced at $5,500. It costs $2,000 in raw material, $1,250 in labour, and $250 in other expenses. What is the minimum number of bracelets that need to be sold to earn a profit? a.28 b. 44 c. 77 d. 17NTJ Distributors Ltd has has an annual demand for an airport metal detector of 1400 units. The cost of a typical detector is $400. Carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If Tricia Joseph, the owner, orders in quantities of 300, he can get a 4% discount on the cost of the detectors. Should the company accept the discount?A company makes and sells ornamental vases. To make the vases there is a fixed monthly cost of $6,000 and an additional production cost of $9 per vase. The vases sell for $18 each. Find the break even point.