U-Too Everwear Corporation can manufacture mountain climbing shoes for $31.15 per pair in variable raw material costs and $22.50 per pair in variable labor expenses. The shoes sell for $156 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,235,000. a. What were total production costs? b. What is the marginal cost per pair? c. What is the average cost per pair? d. If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? Provide answer

U-Too Everwear Corporation can manufacture mountain climbing shoes for $31.15 per pair in variable raw material costs and $22.50 per pair in variable labor expenses. The shoes sell for $156 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,235,000. a. What were total production costs? b. What is the marginal cost per pair? c. What is the average cost per pair? d. If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? Provide answer

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 58P: Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and...

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Polaris Inc. manufactures two types of metal stampings for the automobile industry: door handles and trim kits. Fixed cost equals 146,000. Each door handle sells for 12 and has variable cost of 9; each trim kit sells for 8 and has variable cost of 5. Required: 1. What are the contribution margin per unit and the contribution margin ratio for door handles and for trim kits? 2. If Polaris sells 20,000 door handles and 40,000 trim kits, what is the operating income? 3. How many door handles and how many trim kits must be sold for Polaris to break even? 4. CONCEPTUAL CONNECTION Assume that Polaris has the opportunity to rearrange its plant to produce only trim kits. If this is done, fixed costs will decrease by 35,000, and 70,000 trim kits can be produced and sold. Is this a good idea? Explain.
U-Too Everwear Corporation can manufacture mountain climbing shoes for $31.15 per pair in variable raw material costs and $22.50 per pair in variable labor expenses. The shoes sell for $156 per pair. Last year, production was 120,000 pairs. Fixed costs were $1,235,000. a. What were total production costs? b. What is the marginal cost per pair? c. What is the average cost per pair? d. If the company is considering a one-time order for an extra 5,000 pairs, what is the minimum acceptable total revenue from the order? Provide answer to me of this accounting question
K-Too Everwear Corporation can manufacture mountain climbing shoes for $11 per pair in variable raw material costs and $13.34 per pair in variable labor expense. The shoes sell for $126 per pair. Last year, production was 180,000 pairs. Fixed costs were $780,000. a. What were total production costs? b. What is the marginal cost per pair? c. What is the average cost? d. If the company is considering a one-time order for an extra 13, 000 pairs, what is the minimum acceptable total revenue from the order?
Ojo Outerwear Corporation can manufacture mountain climbing shoes for $42.98 per pair in variable raw material costs and $25.40 per pair in variable labor expense. The shoes sell for $134 per pair. Last year, production was 150,000 pairs. Fixed costs were $1,105,000. a. What were total production costs? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) b. What is the marginal cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the average cost per pair? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If the company is considering a one-time order for an extra 6,000 pairs, what is the minimum acceptable total revenue from the order? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Total production cost b. Marginal cost per pair c. Average cost per pair d.…
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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per unit, and the variable labor cost is $3.4 per unit. a. What is the variable cost per unit? b. Suppose the company incurs fixed costs of $790,000 during a year in which total production is 355,500 units. What are the total costs for the year? c. If the selling price is $10.2 per unit, what is the NSI break-even on a cash basis?
What is the manufacturing cost per unit?
A company that sells radios has yearly fixed costs of $600,000. It costs the company $45 to produce each radio. Each radio will sell for $65. The company's costs and revenue are modeled by the following functions, where x represents the number of radios produced and sold: C(x) = 600,000 + 45x This function models the company's costs. R(x) = 65x. This function models the company's revenue. Find and interpret (R – C)(20,000), (R – C)(30,000), and (R - C)(40,000).
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Nik is a company that manufactures running shoes. It has a fixed cost of $300,000.00. Additionally, it costs $30 to produce each pair. They are sold at $80 a pair. A.Write the cost function, C, of producing x running shoes. B.Write the revenue function, R, from the sale of x running shoes. C.Suppose Nik produces too many running shoes- more than they can sell in the stores. How would this impact profits? Is there anything the managers can do to cut their losses? D.Suppose that we can sell all of the units that we produce. How many running shoes would Nik have to produce/sell in order for the company to make a profit? E.Determine the break-even point. Describe what this means. Graph the lines with at least three points each.
Dove, Inc. produces a product that has a variable cost of $6.00 per unit. The company's fixed costs are $60,000. The product is sold for $9.00 per unit and the company desires to earn a target profit of $30,000. What is the amount of sales that will be necessary to earn the desired profit?
Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle helmets are priced at $77 and have variable costs of $47 each. The motorcycle helmets are priced at $220 and have variable costs of $145 each. Total fixed cost for Head-First as a whole equals $57,000 (includes all fixed factory overhead and fixed selling and administrative expense). Next year, Head-First expects to sell 4,850 bicycle helmets and 1,940 motorcycle helmets. Required: 1. Form a package of bicycle and motorcycle helmets based on the sales mix expected for the coming year. 2. Calculate the break-even point in units for bicycle helmets and for motorcycle helmets. 3. Check your answer by preparing a contribution margin income statement.