The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 11 Sales volume (units) 90.000 Costs: Materials (E) 52.500 Labour (E) 33,800 Energy (E) 25,000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of E15.000 Depreciation is a fixed cost An allowance for an energy price increase of 13% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assu tions: Selling prices will be reduced by 7% The sales volume will increase by 6% The rise in the energy prices should be revised to 6% What will be the company's new energy cost for the year?

The following data relates to a company's operating budget for its next operating year: Sales price per unit (E) 11 Sales volume (units) 90.000 Costs: Materials (E) 52.500 Labour (E) 33,800 Energy (E) 25,000 Depreciation (E) 105,000 The budget has been prepared using the following assumptions: Materials costs are variable. Labour costs are semi-variable with a fixed element of E15.000 Depreciation is a fixed cost An allowance for an energy price increase of 13% has already been included in the energy costs. The company now wishes to revise the data to incorporate the following updated assu tions: Selling prices will be reduced by 7% The sales volume will increase by 6% The rise in the energy prices should be revised to 6% What will be the company's new energy cost for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company offers three products, A,B,C The current budget for the upcoming accounting period is presented below, by product: A B C # of units 18 12 30 Selling price per unit ($) 75 50 60 Variable cost per unit ($) 25 20 15 Fixed costs (total $) 500 360 900 There is a different customer market for each of these products. Fixed costs reflect product-specific machinery. Required 1. Identify which of the two methods to compute the break-even point best suits this scenario. 2. Describe why the method you identified in (1) best suits this scenario. 3. Compute the break-even point in units using this method.
Calculate what Jordan Manufacturing Co.'s Flexible Budget would be at an estimate of 9,000 units, given the following: The Static Budget at 8,000 units of production includes $40,000.00 for Direct Labor and $4,000.00 for Electric Power. Also, total Fixed Costs are $23,000.00 Variable costs of $49,500.00 & Fixed costs of $25,875.00 O Variable and Fixed costs totaling $75,375.00 Variable costs of $49,500.00 & Fixed costs $23,000.00 Variable costs of $44,000.00 & Fixed costs of $23,000.00
Based on a predicted level of production and sales of 24,000 units, a company anticipates total contribution margin of $79,200, fixed costs of $24,000, and operating income of $55,200. Based on this information, the budgeted operating income for 21,000 units would be: Multiple Choice $55,200. $103,200. $45,300. $44,571. $79,200.
The fixed budget for 21,700 units of production shows sales of $564,200; variable costs of $65,100; and fixed costs of $143,000. If the compamy actually produces and sells 27,500 units, calculate the flexible budget income.
Canucks plc has prepared the following flexible budget for the coming year. The Budgeted level of activity is 7,500 units. SalesDirect material Direct labour Variable overheads Fixed overheads Profit £ 250,000 75,000 60,000 30,000 45,000 22,500 If the budget is flexed to a level of activity of 10,000 units, what would the total budgeted cost be? a) £265,000 b) £280,000 c) £123,750 d) £168,750
Required Information [The following information applies to the questions displayed below.] The fixed budget for 21,500 units of production shows sales of $559,000; variable costs of $64,500; and fixed costs of $142,000. If the company actually produces and sells 26,500 units, calculate the flexible budget Income. Sales Variable costs Contribution margin Fixed costs Income ------Flexible Budget-..... Variable Amount Total Fixed per Unit Cost $ 689,000 689,000 ------Flexible Budget at 21,500 units $ $ 0 0 26,500 units $ $ 0 0
please dont give solution in imsge thnku
Assume that a company provided the following cost formulas for three of its expenses (where q refers to the number of hours worked): Rent (fixed) Supplies (variable) Utilities (mixed) $ 4.009 $150 + $0.75q The company's planned level of activity was 2,110 hours and its actual level of activity was 1,850 hours. How much supplies expense would be included in the planning budget? Multiple Choice C $7,840 $8,140 $8,340 $ 3,000 $8,440
The budget of Bisby plc shows total production overheads of £78m. They plan to work 6m hours and total labour costs for the year are £26m. Which of the following can be a suitable absorption rate for the production overhead?   i. £4 per hour ii.  £13 per hour iii.  £3 per labour cost iv.  £13 per labour cost Select one: a. i and iii b. i and iv c. ii and iii d. ii and iv
A company’s static budget estimate of total shipping cost was $100,000 based on theassumption that 10,000 units would be produced and sold. The company estimatesthat 30% of this amount is variable and the remainder is fixed. What would be thetotal shipping cost if 12,000 units were produced and sold?a. $96,000b. $100,000c. $106,000d. $116,000
(1) Compute the total variable cost per unit.(2) Compute the total fixed costs.(3) Compute the income from operations for sales volume of 12,000 units.(4) Compute the income from operations for sales volume of 16,000 units.
The following information presents key figures pertaining to the operating budget of a company: Sales at 92 % of capacity $644,000 Fixed costs $215,000 Variable costs $373,520 $588, 520 Net income $55, 480 Compute the break-even point as a percent of capacity.