Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

Use the following to answer numbers 13 and 14 The Anderson Company has recently purchased a plant to manufacture a new product. The following data pertain to the new operation: Estimated annual sales 3,500 units at $20 Estimated costs: Direct materials....... Direct labor........... Factory overhead (all fixed). Selling Expenses. ******** Administrative expenses 13- The break-even point in dollars is: a. $77,000 b. $78,000 c. $79,000 $6.00/unit $1.00/unit ..... $12,000 per year 30% of sales $16,000 per year d. $80,000 14- What is the selling price if the profit per unit is $2.04? a. $24.24 b. $24.34 c. $26.24 d. $26.34

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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3. JRT, Inc., predicts the following unit costs of making and selling its single product at a volume of 6,000 units per month (72,000 per year): Total Costs Manufacturing costs: Materials (variable) Labor (variable) Cost Per Unit $20 10 Variable overhead 8 Fixed overhead 6. Selling and administrative expenses: Variable 7 Fixed 10 Total: $61 JRT's income tax rate is 40%, and it sells its product for $75 per unit. Required: а. Determine JRT's monthly break-even point; b. The number of units JRT would have to sell to earn a monthly net income (after-tax) of $77,400; and с. The dollar amount of sales JRT would need to make to earn a monthly net income of $32,400.
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et A company reports the following per unit cost information for this year: Direct materials, $3.90, Direct labor, $5.30, Variable overhead costs, $2.50, Variable selling and administrative costs, $2.90, Fixed costs are $67,000 per year. The company sold 6,700 units for $37 per unit For next year, the company will use a new material, which will reduce direct materials cost to $3.60 per unit. The company will also increase its selling price to $38 per unit, which will decrease unit sales volume to 6,200 units. Fixed costs per year, direct labor cost per unit, variable overhead costs per unit, and variable selling and administrative expenses per unit will not change. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the contribution margin per unit when using the new material, increasing the selling price, and decreasing unit sales. Note: Round "per unit answers" to 2 decimal places. Contribution margin per unit Sales price per unit Variable…
A. Break-even point in units Assume that you are part of the accounting team for Koller Computing. The company currently expects to sell 700 units for total revenue of $17,500 each month. Koller Computing estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. The company also expects fixed costs of $4,000, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below. Koller Computing Contribution Margin Income Statement Kindly select which of the two is the correct answer in the sales colum as well as input the correct $ values in the corresponding columns Sales $__________ a. Less: variable cost b. Less: Fixed Cost $__________ b. Contrubution margin b. Gross margin $__________ a. Less: variable cost b. Less: Fixed Cost $__________ Operating income $__________…
The Varone Company makes a single product called a Hom. The company has the capacity to produce 40,000 Homs per year. Per unit costs to produce and sell one Hom at that activity level are: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Variable selling expense Fixed selling expense S $20 $10 $5 $7 O $23,200 decrease $27,000 Increase $50,800 Increase O $63,000 Increase $10 $8 The regular selling price for one Hom is $60. A special order has been received at Varone from the Fairview Company to purchase 6,300 Homs next year at 20% off the regular selling price. If this special order were accepted, the variable selling expense would be reduced by 30%. However, Varone would have to purchase a specialized machine to engrave the Fairview name on each Hom in the special order. This machine would cost $10,800 and it would have no use after the special order was filled. The total fixed costs, both manufacturing and selling, are constant within the…
Menk Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 6.80 Direct labor $ 3.80 Variable manufacturing overhead $ 2.00 Fixed manufacturing overhead $ 20,200 Sales commissions $ 0.50 Variable administrative expense $ 0.40 Fixed selling and administrative expense $ 10,100 Required: a. If 5,220 units are sold, what is the variable cost per unit sold? Note: Round "Per unit" answer to 2 decimal places. b. If 5,220 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,220 units are produced, what is the total amount of manufacturing overhead cost incurred? a. Variable cost per unit sold b. Total variable costs c. Total manufacturing overhead cost
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