What is the expected added profit from the Challenger line ?Challenger BikesSelling Price per UnitMaterialsDirect LabourOverhead (40% Variable)TotalPer Unit Relevant CostEstimated AdditionalContribution MarginEstimated Sales UnitEstimated Increase in profit$39.8019.69.8 (40%*24.50)$69.20$92.29$69.20$23.0925000$577,250

Contribution Margin is defined as what revenue is left with the firm after deduction of its Variable…

Answered: What is the expected added profit from…

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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Variable costs: Manufacturing Sales commission Total variable costs Fixed costs (allocated): Manufacturing Selling and administrative Total fixed costs Total costs Variable manufacturing cost per unit E20.24 Absorption cost per unit Total variable cost per unit = = $400 $192000-480 = ($192000-$120000)- 480 = ($192000-124000)-480 =$450 = 5650 $192 000 $ 24 000 $120 000 $48 000 $216 000 $168 000 $384 000 Determining markup percentage; target ROI: manufacturer LO 20.3 Refer to the cost and production data for the Wave Darter in Exhibit 20.4. The target profit is $110 000. Required Use the general formula to calculate the required markup percentages for each of the following cost- plus formulas: 1. variable manufacturing cost 2. absorption cost.
Problem No. 4 - Cost Volume Profit Analysis CBA Company provided you with the following information: Product C E F Units sold 60,000 20,000 20,000 25,000 Unit selling price P40 P35 P35 P35 Material cost per unit P15 P18 P20 P16 Labor cost per unit P5 P3 P3 P2 Variable cost per unit P2 P1 P1 P1 Total fixed costs P1,019,200 Desired profit P784,000 Requirement: 1. Determine the volume of each product to show a net profit of P784,000. 2. Prepare a statement of comprehensive income showing the sales, contribution margin of each product and total, and the net profit of P784,000.
How many units of A should be produced to maximize the profit of company?
PLEASE ANSWER ONLY QUESTIONS F AND G
PROBLEM SOLVING 1. ABC Mfg. Co. buy and sells its lone product on which the following data are given: Sales volume per annum Unit selling price Production cost per unit: Direct materials Direct labor Variable factory overhead Fixed factory overhead (P25,000/20,000 units) Variable operating expense per unit Fixed operating expenses (P10,000/20,000 units) P1.00 0.50 a. Should the order be accepted? Why? 25,000 units P10.00 P3.50 2.50 2.00 1.25 A special order is received for P2,000 units from a remote market at P7.90, FOB destination. Packing and shipping costs are estimated at P1,200. Decision making: (show computation) b. What is the BEP price or sales cut-off price for the special order?
Southampton Electronics manufactures a range of portable heaters. Most of the output is exported. Sales Selling price Contribution margin ratio Margin of safety percentage The variable expense per unit is: Select one: O A. £10.00 per unit O B. £17.50 per unit O C. £7.50 per unit O D. £15.00 per unit 12,000 units £25 per unit 40% 30%
QUESTION 2 Luna Sea Sushi, Inc. has total costs of $120,000 when it sells 40,000 units. If total fixed costs are $40,000, what is variable cost per unit?
Product Blue Product Red £ £ Selling 12.00 24.00 Variable cost 4.00 8.00 Contribution margin 8.00 16.00 Fixed cost apportioned 200,000 400,000 Budget sales units 140,000 60,000 Required: a) Calculate the breakeven points, for each product and the company as a whole and comment on your findings b) Discuss the merits and demerits of the cost volume profit analysis (CVP)
Assume a company makes only three products, A, B, and C. Product A Product B Product C Estimated customer demand in units Selling price per unit 800 700 $ 80 $ 45 Variable cost per unit $ 35 $ 20 Machine-hours per unit 2.5 1.25 The company has only 2.850 machine-hours available. What is the highest total contribution margin that the company can earn if it makes optimal use of its constrained resource? Multiple Choice O O $52.800 $59,800 $55,000 $57,800 600 $ 65 $ 26 3.0
pls answer and explain thanks

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