Trusted Products Company makes a household appliance with model number L800. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 3% from 2019 to 2020. The following additional data are available for 2019 and 2020 Units of L800 produced and sold Selling price Direct materials (square feet Direct material costs per square foot Manufacturing capacity for L800 (units) Total conversion costs Conversion costs per unit of capacity 2019 2020 38,000 39,140 $310 $290 97,000 94,000 $34 $37 46,100 47,500 $1,140,000 $1,106,400 $24 $24 OA No, because operating income decreased OB No. because direct material cost per unit decreased OC No, because direct materials usage per unit increased OD. Yes, because total revenues increased

Trusted Products Company makes a household appliance with model number L800. The goal for 2020 is to reduce direct materials usage per unit. No defective units are currently produced Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 3% from 2019 to 2020. The following additional data are available for 2019 and 2020 Units of L800 produced and sold Selling price Direct materials (square feet Direct material costs per square foot Manufacturing capacity for L800 (units) Total conversion costs Conversion costs per unit of capacity 2019 2020 38,000 39,140 $310 $290 97,000 94,000 $34 $37 46,100 47,500 $1,140,000 $1,106,400 $24 $24 OA No, because operating income decreased OB No. because direct material cost per unit decreased OC No, because direct materials usage per unit increased OD. Yes, because total revenues increased

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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Legrand Company produces hand cream. In 2018, their financial information is as follows:Each jar sells for: $3.40Total variable cost (materials, labor, and overhead) per jar: $2.55Total fixed cost: $58,140Total jars sold in 2018: 81,6001. Calculate the margin of safety in units?
Please read the directive and questions carefully and answer the questions as follows. Use the correct rules available and formulas. Also explain in steps by steps .
Help determine the selling price to retailers in 2020. And answer the more info section after finding the selling price please.
3) Prepare CVP income statements. Olsen Company has the following information available for September 2019. Unit selling price of video game consoles $ 400 Unit variable costs 2$ 275 Total fixed costs $52,000 Units sold 600 Instructions (a) Compute the contribution margin per unit. (b) Prepare a CVP income statement that shows both total and per unit amounts.
2) Trusted Products Company makes a household appliance with model number L800. The goal for 2018 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of L800 units that can be produced. The industry market size for appliances increased 15% from 2017 to 2018. The following additional data are available for 2017 and 2018: 2017 2018 Units of L800 produced and sold 33,000 37,950 Selling price $370 $355 Direct materials (square feet) 98,000 95,000 Direct material costs per square foot $34 $35 Manufacturing capacity for L800 (units) 41,250 39,650 Total conversion costs $948,750 $911,950 Conversion costs per unit of capacity $23 $23 What is the cost effect of the growth component for direct materials? 2) A) S1,831,500F B) $499,800 U C) S499,800 F D) $1,831,500 U
1. If the company uses absorption costing ,variable costing and super-variable costing What is the product cost per unit for 2020? . What is the 2020 net operating income? Please answer all the three methods
Meale Company makes a household appliance with model number X500. The goal for 2015 is to reduce direct materials usage per unit. No defective units are currently produced. Manufacturing conversion costs depend on production capacity defined in terms of X500 units that can be produced. The industry market size for appliances increased 10% from 2014 to 2015. The following additional data are available for 2014 and 2015: Units of X500 produced and sold Selling price Direct materials (square feet) Direct material costs per square foot Manufacturing capacity for X500 (units) Total conversion costs Conversion costs per unit of capacity 17) What is operating income for 2014? A) $450,000 B) $1,000,000 C) $750,000 D) $700,000 18) What is operating income for 2015? A) $1,045,000 B) $726,000 C) $486,000 D) $476,000 2014 10,000 $100 30,000 $10 12,500 $250,000 $20 2015 11,000 $95 29,000 $11 12,000 $240,000 $20
Estrada Corporation produced 200,000 watches that it sold for $20 each during 2019. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,200,000 gross margin on its 2019 financial statements. Required Determine the variable cost per unit, the total variable cost, and the total contribution margin.
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