We have been asked to analyze our denim jeans line by labor cost (from $13.00 to $16.00 by $0.25) and electricitycosts (from 0.85 to 1.50 by 0.05).Fixed Cost = $184,000Material cost per pair = $9.17Revenue per pair = $29.99 Quantity = 27,500If we are to be profitable, what must the electricity cost be if our labor cost is $13.25 per hour?

Variable Cost :— It is the expenses that is changes with change in units. It is constant in per…

Answered: We have been asked to analyze our denim…

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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We have been asked to analyze our denim jeans line by labor cost (from $13.00 to $16.00 by $0.25) and sales price (from $23.99 to $36.99 by $1.00). Fixed Cost = $133,050 Material cost per pair = $8.26 Electricity cost per pair = $0.83 Quantity = 26,000 What is the profit at the highest sales price and highest labor cost? $156,450 $254,350 $195,850 O $176,350
Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
Brando Industries has gathered the following information concerning one model of shoe: Variable manufacturing costs Variable selling and administrative costs Fixed manufacturing costs Fixed selling and administrative costs Investment ROI Planned production and sales $50000 $36000 $160000 $120000 $1500000 30% 6000 pairs What is the total cost per pair of shoes?
Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans
Requirements 1. 2. 3. 4. What is the total cost of producing 1,200 mailboxes? If $18,516 of the total costs are fixed, what is the variable cost of producing each mailbox? Write Branson Mailbox's cost equation. If the plant manager uses the average cost per unit to predict total costs, what would the forecast be for 1,500 mailboxes? 5. If the plant manager uses the cost equation to predict total costs, what would the forecast be for 1,500 mailboxes? 6. What is the dollar difference between your answers to questions 4 and 5? Which approach to forecasting costs is appropriate? Why?
(3) A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500 per day when producing 15 sinks. The company has a daily demand function of q = 360 − p, where q is the number if laundry sinks demanded and p is te price of a laundry sink. (c) If production increases continuously, what is likely to be the average cost per sink?(d) How many laundry sinks will the company need to produce in order to maximise it′s profits?(e) What is the maximum profit?
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
Use the following information for the next 2 questions (8 & 9). Division X produces and sells a product to external and internal customers. Per-unit information about its operations include: Selling price per unit to external customers $250 Variable manufacturing costs per unit 115 Fixed manufacturing overhead costs per unit 70 8. If X is operating at capacity and has unlimited external customer demand, what should be the minimum transfer price? 9. If X has sufficient excess capacity to meet internal demand, what should be the minimum transfer price?
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $31 per pound and costs $29 per pound to produce. Product C would sell for $57 per pound and would require an additional cost of $23 per pound to produce. What is the differential cost of producing Product C? a. $29 per pound b. $57 per pound c. $31 per pound d. $23 per pound
Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $20 per pound and costs $15.75 per pound to produce. Product D would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. How do we calculate the differential cost of producing Product D?
An industrial firm uses economic analysis to determine which of two different machines to purchase. Each machine is capable. Each machine is capable of performing the same task in a given amount of time. Assume the MARR=8%. Use the following data for analysis:Which, if either of the two machines should the firm choose?
A Company wants to introduce new product. The estimated price of each mobile phone is RO 60. The company requires a profit margin of 20% on sales. The estimated cost of manufacturing the product is : Material cost : RO 9.500 Labour Cost : RO 12.750 Other Direct Expenses : RO 7.500 Administrative Costs : RO 5.000 Marketing and Selling expenses : RO 15.000 Calculate the Target Cost of the product and the Target Cost Gap.

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