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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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
Current Attempt in Progress Wildhorse Delivery is a rapidly growing delivery service. Last year, 80% of its revenue came from the delivery of mailing "pouches" and small, standardized delivery boxes (which provides a 20% contribution margin). The other 20% of its revenue came from delivering non-standardized boxes (which provides a 70% contribution margin). With the rapid growth of Internet retail sales, Wildhorse believes that there are great opportunities for growth in the delivery of non-standardized boxes. The company has foxed costs of $13,868.100 Sales mix is determined based upon total sales dollars. (a) What is the company's break-even point in total sales dollars? At the break-even point, how much of the company's sales are provided by each type of service? (Use Weighted-Average Contribution Margin Ratio rounded to 2 decimal places eg.0.22 and round final answers to O decimal places, eg 2.510) Total break-even sales Sale of mail pouches and small boxes Sale of non-standard…
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blanc Inc. sells a product for $67 per unit. The variable cost is $41 per unit, while fixed costs are $160,888. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $75 per unit fill in the blank 2 units
Pau, Inc., which has fixed costs of $51401, sells two products whose sales price, variable cost per unit, and percentage of sales units are presented in the table below. Sales Price Variable Cost Sales Mix Product A Product B $ $ $23 $8 40 % 16 7 60% How many units of Product B must Pau sell to break even Do not round intermediate calculations. Round your final answer to the nearest whole number. 0 out of 1 points
Please answer competely
Gladstorm Enterprises sells a product for $50 per unit. The variable cost is $32 per unit, while fixed costs are $16,200. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the selling price increased to $62 per unit fill in the blank 2 units
Unit cost per order of a given size 2. An analysis of selling costs shows: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) nces ? Management may want to consider offering discounts for large orders. ? Small orders are preferable to medium sized orders. 2 Large orders are preferable to medium sized orders. ? Marketing should be focused on small sized orders. raw lill insert Oelete F9 F10 F11 F12 F6
Gladstorm Enterprises sells a product for $46 per unit. The variable cost is $29 per unit, while fixed costs are $19,227. Determine the following: Round your answers to the nearest whole number. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the selling price increased to $58 per unit fill in the blank 2 units
At Sandhill Electronics, it costs $31 per unit ($20 variable and $11 fixed) to make an MP3 player that normally sells for $49. A foreign wholesaler offers to buy 3,720 units at $28 each. Sandhill Electronics will incur special shipping costs of $3 per unit. Assuming that Sandhill Electronics has excess operating capacity, indicate the net income (loss) Sandhill Electronics would realize by accepting the special order. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Revenues Costs-Variable manufacturing Shipping Net income $ $ The special order should be accepted Reject Order i i $ $ Accept Order 104,160 (74,400) i (3,720) 26,040 $ $ Net Income Increase (Decrease) 104,160 (74,400) (3,720) 26,040

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