Req 1AReq 1BRelevant unit costReq 2Req 3per unitReq 4A to 4CReq 4DThe company has 500 Daks on hand that have some irregularities and are therefore considered to be "seconds." Due to theirregularities, it will be impossible to sell these units at the normal price through regular distribution channels. What is the unitcost figure that is relevant for setting a minimum selling price? (Round your answer to 2 decimal places.)Req 5 Andretti Company has a single product called a Dak. The company normally produces and sells 89,000 Daks each year at a sellingprice of $60 per unit. The company's unit costs at this level of activity are given below:Direct materialsDirect laborVariable manufacturing overheadFixed manufacturing overheadVariable selling expensesFixed selling expensesTotal cost per unit$ 8.509.002.309.00 ($801,000 total)3.702.50($222,500 total)$35.00A number of questions relating to the production and sale of Daks follow. Each question is independent.

Relevant cost is utilized to minimize extraneous facts that help the company in decision-making.

Answered: The company has 500 Daks on hand that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Consider the case of the Cast Iron Company. On each nondelinquent sale, Cast Iron receives revenues with a present value of $1,390 and incurs costs with a present value of $1,000. Cast Iron’s costs have increased from $1,000 to $1,240. Assuming that there is no possibility of repeat orders and that the probability of successful collection from the customer is p = 0.95, answer the following. a-1. What is the expected profit of granting credit? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Should Cast Iron grant or refuse credit? multiple choice Grant Refuse b. What is the break-even probability of collection? (Enter your answer as a percent rounded to 1 decimal place.)
In each of the following cases, calculate the accounting break-even and the cash break- even points. Ignore any tax effects in calculating the cash break-even. (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Case 123 Case 1 2 3 Unit Price $ 2,980 44 8 Unit Varlable Cost $1,640 39 3 Accounting break-even Fixed Costs $ 7,200,000 275,000 5,800 Cash break-even Depreciation $2,900,000 183,000 1,100
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Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
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In a revenue sharing supply contract the wholesale order quantity is 8000 units and the wholesale price is $20. The retailer selling price is $36 and the clearance price is $12. For the demand scenario of 6,555 units the occurrence probability is 0.19. What is the expected profit for this scenario? (No decimals)
Jacoby Company received an offer from an exporter for 20,500 units of product at $19 per unit. The acceptance of the offer will not affect normal production or domestic sales prices. The following data are available: Domestic unit sales price $24 Unit manufacturing costs: Variable $9 Fixed $5 What is the differential revenue from the acceptance of the offer? a.$389,500 b.$881,500 c.$102,500 d.$492,000
Problem 7-18 Relevant Cost Analysis in a Variety of Situations [LO 7-2, LO 7-3, LO 7-4] Andretti Company has a single product called a Dak. The company normally produces and sells 81,000 Daks each year at a selling price of $46 per unit. The company's unit costs at this level of activity are given below: 2$ 11.00 1.90 5.00 ($405,000 total) 4.70 5.50 ($445,500 total) $ 35.60 Direct materials 7.50 Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Total cost per unit A number of questions relating to the production and sale of Daks follow. Each question is independent.
Please solve accurately. Thank you
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Zozan Corp. manufactures Hydrogen engines automobiles. The variable cost is $41,000 per unit, and the credit price is $44,000 each. Credit is extended for one period, and based on historical experience, payments for 11% of the orders are never collected. The required return is 3% per period. Assuming a repeat customer, should it be filled by the firm? The customer will not buy if credit is not extended (Do not use the $ sign. if your answer is -$123,456.78, then enter -123456.78).
3. Elmwood Pinecone sells fake Christmas trees with a selling price of $75 and variable costs per unit of $30. The company’s monthly fixed expenses are $22,500. The following names are to be considered when completing this problem: Operating Income Variable Costs Sales Fixed Costs per Unit Selling Price per Unit Variable Cost per Unit Contribution Margin Fixed Costs Operating Loss What is the Elmwood’s break-even point in units? . Use commas as needed (i.e. 1,234). What is the Elmwood’s break-even point in dollars? . Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Using the names listed above, construct a contribution margin income statement for the month of November when they will sell 900 units. Rounded to whole dollars and shown with "$" and commas as needed (i.e. $12,345). Elmwood Pinecone Contribution Margin Income Statement For the Month of November ? ? ? ? ? ? ? ? ? ? How many trees will Elmwood need to sell…

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