Variable Costs per Unit Fixed Costs (in total) Direct materials.. $70 Overhead. $670,000 Direct labor 40 Selling 305,000 Overhead.. 25 Administrative . 285,000 Selling 15 1. Compute the variable cost per unit. 2. Compute the markup percentage on variable cost. 3. Compute the product's selling price using the variable cost method.
Q: Best Birdies produces ornate birdcages. The company's average cost per unit is $18 when it…
A: Variable cost and Fixed cost: When the demand is at its peak, variable costs would also increase…
Q: You make component X in-house at a cost of $16 per unit, which consists of $2 direct labor per unit,…
A: The change in profit is defined as the amount that will arise due to a change in the decision of…
Q: Wheeler Company can produce a product that incurs the following costs per unit: direct materials,…
A: The differential analysis is performed to compare the different alternatives available with the…
Q: Smart Stream Inc. uses the variable cost method of applying the cost-plus approach to product…
A: VARIABLE COST Variable Cost is a cost that varies with the level of output.variable costs include…
Q: Bright Force Inc. produces and sells lightning fixtures. An entry light has a total cost of $90 per…
A: Mark up % is % of Mark up over product cost
Q: Justine Corporation currently makes rolls for deli sandwiches it produces. It uses 40,000 rolls…
A: Working: Avoidable fixed overhead = Total fixed overhead x 20% = $0.20 per roll x 20% = $0.04 per…
Q: Moon Company uses the variable cost method of applying the cost-plus approach to product pricing.…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: Peppertree Company has two divisions, East and West. Division East manufactures a component that…
A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…
Q: Variable costs per unit: Direct materials $ 7.00 Direct labor 3.50 Factory overhead…
A: Variable costs are those costs which changes along with change in activity level. Markup is added to…
Q: Cool Boards manufactures snowboards. Its cost of making 2,100 bindings is as follows: (Click the…
A: After performing a cost-benefit analysis, a make-or-buy decision is reached on whether to produce a…
Q: Required prepare the debtors control account and creditors control account
A: Debtors control account also known as Sales Ledger control account and Creditors control account…
Q: Bradley Company sells a product that has variable costs of $54 each and a sales price $79 each.…
A: Break even analysis and contribution margin analysis is an important tool in cost volume profit…
Q: Voice Com desires a profit equal to a 16% rate of return on invested assets of $599,700. a.…
A: Solution Note Dear student as per the Q&A guideline we are required to answer the first three…
Q: Tiger Corp expects to sell 15,000 units of product. The average price per unit is $12 and variable…
A: Financial risk is a measure of the uncertainty and potential loss associated with an investment or…
Q: Sterling Co. manufactures phone equipment and uses the variable cost method of applying the…
A: Markup percentage based on variable cost=Desired profitVariable costs
Q: Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for…
A:
Q: A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per…
A: Answer - Sales Level to achieve the desired Target income = (Fixed Cost + Targeted Income) /…
Q: costs of $315,000. The current sales price is $87. Note: The r are interdependent. For example, the…
A: To calculate the level of sales required , the fixed cost plus desired profit is divided by the…
Q: Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35,…
A: First compute the fixed cost per unit: Fixed cost per unit = ($645,000 + $111,000)/10,500 Fixed cost…
Q: Swan Company has two divisions, Hill and Paradise. Hil 5,600 units from an outside supplier for $62.…
A: Solution: Paradise will save = Outside purchase price - Transfer price = 62 - 48 = $14 per unit
Q: Friar Corp. sells two products. Product A sells for $112 per unit, and has unit variable costs of…
A: The variable cost is the cost that changes as the level of production increases. The variable cost…
Q: company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed…
A:
Q: Hamlet House makes portable garden sheds that sell for $1,800 each. Costs are as follows: Per…
A: The objective of the question is to calculate the break-even point and the number of units to be…
Q: Tidewater Company uses the product cost concept of applying the cost-plus approach to product…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Kareem Co. produces a single product that is sold for $85 per unit. If the variable costs per unit…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Pimpton Plows sells its product for $50. Its variable cost per unit is $19.00. Fixed costs total…
A: Calculate the break even point as follows: Break even units = Fixed cost / (Selling price - variable…
Q: o, Inc., which uses a volume-based cost system, produces cat condos, and has a gross profit margin…
A: The direct costs of producing the goods sold by a company are referred to as the cost of goods sold…
Q: Zachary Corporation sells hammocks; variable costs are $70 each, and the hammocks are sold for $132…
A: MARGINAL COSTING INCOME STATEMENTMarginal Costing Income Statement is One of the Important Cost…
Q: The Company manufactures zamboozas. The selling price of the zamboozas is $45 per unit and variable…
A: Here in this question we are required to calculate sales that requires to achieve target profit. For…
Q: Steeze Co. makes snowboards and uses the total cost approach in setting product prices. Its costs…
A: Working note:
Q: Avery Company has two divisions, Polk and Bishop. Polk produces an item that Bishop could use in its…
A: Solution a: Operating profit will increase by = (outside purchase price - variable cost per unit) *…
Q: Holiday Corp. has two divisions, Quail and Marlin. Quail produces a widget that Marlin could use in…
A: Full cost of $7.10 is irrelevant cost because the production in excess capacity will only incur…
Q: Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per…
A: Variable Material Cost per unit = $ 1.89 Variable Labor Cost per unit = $ 3.40
Q: Tots-To-Go, Inc., has two divisions—the seat division and the stroller division. The seat division…
A: a. Compute the contribution margin earned annually by each division and by the company as a whole…
Q: Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing.…
A: Lets understand the basics.Cost of the product includes all the cost i.e. variable as well as fixed.…
Q: Hazel Company makes an unassembled product that it currently sells for $55. Production costs are…
A: Incremental Analysis :— This analysis shows the comparison between two different alternatives. A…
Q: The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on…
A: Selling price = $25 Variable cost = $14 Fixed cost = $25850
Q: ridewater Company uses the product cost concept of applying the cost-plus approach to product…
A: Product cost concept The costs incurred in the manufacturing of a product are referred to as its…
Q: Requirement 1. Cool Boards' accountants predict that purchasing the bindings from Lewis will enable…
A: Differential Cost analysis :— Differential Cost is the change in the Cost From the Adoption of an…
Q: Baird Enterprises produces a product with fixed costs of $42,300 and variable cost of $3.60 per…
A: Given, Fixed Cost = $42,300 Variable Cost = $3.60 per unit. Target Profit = $27,000 Sales = 11,000…
Q: Hale & Hearty incorporated currently sells 10,000 treadmills for $520 each. Variable costs…
A: The objective of this question is to calculate the margin of safety for Hale & Hearty…
Q: Tequila Mockingbird, Inc. has total costs of $70,000 when it sells 10,000 units. If total fixed…
A: Cost: Cost in accounting can be explained as the amount that is borne by a company or an…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: Break even point is the level of sales at which the firm's operating profit is zero. In other words,…
Q: Jamison Company uses the total cost method of applying the cost-plus approach to product pricing.…
A: when the goods are produced by the company it in needed to be sold by the company above the cost…
Q: Zoro, Inc. produces a product that has a variable cost of $6.00 per unit. The company’s fixed costs…
A: Given: Variable cost per unit = $ 6 Fixed costs = $ 30,000 Cost of product sold = $ 10 Estimated…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: Answer:- Profit model:- A profit model will take into account all expenses and income related to a…
Q: Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total…
A: Fixed cost remain fixed whatever may be the level of output where as variable cost will vary with…
Q: Peppertree Company has two divisions, East and West. Division East manufactures a component that…
A: If East division has excess capacity, the lowest price the east division will accept is to recover…
Rios Co. makes drones and uses the variable cost approach in setting product prices. Its costs for producing 20,000 units follow. The company targets a profit of $300,000 on this product.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit $ 140 1,500,000 4,500,000 $ 17 20 18 14 500,000 units 500,000 units 600,000 units 37.00 $ $ 37.00 55.00 $ 55.00Which of the following types of cost is shown in the cost data below? Cost per Number of Unit Units $6,000 3,000 2,000 1,500 a. fixed cost b. mixed cost C. variable cost d. period cost 2. 3. 4.What type of cost exhibits the behavior shown below? Manufacturing Volume (Units) Cost Per Unit 50,000 $1.95 70,000 1.95 Select one: a. Discretionary fixed cost b. Step-fixed cost. c. Semivariable cost.d. Variable cost. e. Fixed cost
- Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. $ $ $ 160 1,500,000 4,500,000 500,000 units 600,000 units 41.00 $ 41.00 83.00 $ $ $ $ 19 22 20 16 500,000 units…Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Round your answers to 2 decimal places. g. Variable production cost per unit h. Full cost per unit 500,000 units $ $ S $ 50 1,500,000 4,500,000 600,000 units $ 19.00 17.00 $ 13.00 $ 8 11 9 5 500,000 units 19.00 17.00 14.50Lillibridge & Friends, Incorporated provides you with the following data for its single product: Sales price per unit Fixed costs (per quarter): Selling, general, and administrative (SG&A) Manufacturing overhead Variable costs (per unit): Direct labor Direct materials Manufacturing overhead SG&A Number of units produced per quarter a. Prime cost per unit b. Contribution margin per unit c. Gross margin per unit d. Conversion cost per unit e. Variable cost per unit f. Full absorption cost per unit g. Variable production cost per unit h. Full cost per unit 500,000 units $50 1,500,000 4,500,000 Required: Compute the amounts for each of the following assuming that the production levels are within the relevant range if the number of units is 500,000 per quarter. Also calculate if the number of units increases to 600,000 per quarter. Note: Round your answers to 2 decimal places. 8 600,000 units 11 9 5 500,000 units
- Which of the following types of cost is shown in this table of cost data? Cost per Unit $6,000 3,000 2,000 1,500 b. fixed cost Number of Units C. variable cost d. period cost 1 A WN 2 3 4The "x" in the overhead cost equation, y = $5.50x + $92,000, represents which of the following? total overhead costs. the variable costs. total fixed costs. the cost driver in units.Cost Relationships The following costs are for Optical View Inc., a contact lens manufacturer:Output in Units Fixed Costs Variable Costs Total Costs250 $4,750 $ 7,500 $12,250 300 4,750 9,000 13,750350 4,750 10,500 15,250400 4,750 12,000 16,750Required1. Calculate and graph total costs, total variable cost, and total fixed cost.2. For each level of output calculate the per-unit total cost, per-unit variable cost, and per-unit fixed cost.3. Using the results from requirement 2, graph the per-unit total cost, per-unit variable cost, and per-unitfixed cost, and discuss the behavior of the per-unit costs over the given output levels.
- Falsetta Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: ZA JK DHSelling price per unit........................ $402.67 $462.82 $374.06Variable cost per unit....................... $307.53 $344.56 $285.56Time on the constraint (minutes) ...... 6.70 7.30 5.90 Required:a. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. Show your work! b. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource?The company makes a product with the following costs: Direct materials→₱15.70; Direct labor→₱19.70; Variable manufacturing overhead→₱3.50; Fixed manufacturing overhead→₱1,146,600.00; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱984,900. The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 49,000 units per year. The company has invested ₱340,000 in this product and expects a return on investment of 9%. Direct labor is a variable cost in this company. The markup on absorption cost is closest to: a. 118.6% b. 36.5% c. 35.5% d. 9.0%The company makes a product with the following costs: Direct materials→₱15.70; Direct labor→₱19.70; Variable manufacturing overhead→₱3.50; Fixed manufacturing overhead→₱1,146,600.00; Variable selling, general and administrative expenses→₱2.00; Fixed selling, general and administrative expenses→₱984,900. The company uses the absorption costing approach to cost-plus pricing described in the text. The pricing calculations are based on budgeted production and sales of 49,000 units per year. The company has invested ₱340,000 in this product and expects a return on investment of 9%. Absorption cost is 36.5%. Direct labor is a variable cost in this company. The selling price based on the absorption costing approach is closest to: a. ₱84.40 b. ₱85.02 c. ₱53.09 d. ₱115.19