Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost,Units to Eam Target IncomeWerner Company produces and sells disposable foil baking pans toretailers for $2.60 per pan. The variable cost per pan is as follows:Direct materialsDirect laborVariable factory overheadVariable selling expense$0.210.540.650.18Fixed manufacturing cost totals $168,120 per year. Administrative cost(all fixed) totals $22,926.Required:1. Compute the number of pans that must be sold for Werner to breakeven.pans2. Conceptual Connection: What is the unit variable cost? What is theunit variable manufacturing cost? Round your answers to the nearestcent.Unit variable costUnit variable manufacturing costWhich is used in cost-volume-profit analysis?Unit variable cost3. How many pans must be sold for Werner to earn operating income of$11,322?pans4. How much sales revenue must Werner have to earn operating incomeof $11,322?

Approach to solving the question:Rational Detailed explanation:Information Given:Selling price per…

Answered: Units Sold to Break Even, Unit Variable…

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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Doom Bhd manufactures and sells a single product. Cost data for the product are givenbelow:Variable costs per unit:Direct materials RM 7Direct labour RM 10Variable manufacturing overhead RM 5Variable selling and administrative overhead RM 3Total variable cost per unit RM 25Fixed costs per month:Fixed manufacturing overhead RM315,000Fixed selling and administrative overhead RM245,000RM560,000The product sells for RM60 per unit. Production and sales data for July and August, that is,the first two months of operations, follow:Units produced Units soldJuly 17,500 15,000August 17,500 20,000The company’s Accounting Department has prepared an absorption costing income statementfor July and August as presented below:July AugustSales RM 900,000 RM 1,200,000(-) Cost of goods sold (RM 600,000) (RM 800,000)Gross margin RM 300,000 RM 400,000(-) Selling and administrative expenses (RM290,000) (RM 305,000)Net operating income RM10,000 RM 95,000As a cost accountant, you would like to suggest that the…
CVP single product; comprehensiveBeantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows:Direct material$2.00Direct labor1.25Variable overhead0.50Variable selling expenses0.25Total variable cost$4.00Total fixed overhead$1,250,000a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56%).Unit contribution margin in dollars $AnswerContribution margin ratio Answer%\\n
Variable and Absorption Costing-Service CompanyReally BC, Inc. prepares a variable costing income statement for internal management and an absorption costing income statement for its bank. Really BC provides a quarterly lawn care service that is sold for $190. The variable and fixed cost data are as follows: Direct labor $100.00 Overhead Variable cost per unit $33.00 Fixed cost (annual) $100,000 Marketing, general and administrative Variable cost (per service contract completed) $34.00 Administrative expenses (fixed- annual cost) $42,000 During 2016, 10,000 service contracts were signed and 9,500 service contracts were completed. Lawn RX had no service contracts at the beginning of the year. a. Calculate reported income for management.Do not use negative signs with any answers. Absorption Costing Income Statement Sales Answer Cost of Goods Sold: Beginning Inventory Answer Variable…
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Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: $0.27 0.51 0.69 0.18 Compute the number of pans that must be sold for Werner to break even. pans Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? Unit variable cost ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?
roduct Cost Method of Product Costing MyPhone, Inc., uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,160 units of cell phones are as follows: Variable costs: Fixed costs: Direct materials $90 per unit Factory overhead $199,200 Direct labor 31 Selling and admin. exp. 70,300 Factory overhead 23 Selling and admin. exp. 22 Total variable cost per unit $166 per unit MyPhone desires a profit equal to a 13% rate of return on invested assets of $600,800. a. Determine the amount of desired profit from the production and sale of 5,160 units of cell phones.$fill in the blank 1 b. Determine the product cost per unit for the production of 5,160 of cell phones. If required, round your answer to nearest dollar.$fill in the blank 2 per unit c. Determine the product cost markup percentage (rounded to two decimal places) for cell phones.fill in the blank 3 % d.…
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Average Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense $6.55 $3.45 $1.45 $3.80 $1.40 $0.95 $1.35 $0.85 Sales commissions Variable administrative expense If 7,300 units are sold, the variable cost per unit sold is closest to:
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