XYZ Inc. sells a single product for $10 per unit. Variable production costs are $6 per unit. Fixed overhead costs amount$10,000 per month. Variable selling costs are $1 per unit. Fixed selling costs are $5,000 per month. Last month, thecompany produced 10,000 units and sold 8,000 units. What were XYZ's total production costs incurred last period?Multiple Choice$50,000$70,000$40,000$58,000

Total Production costs = Variable Production cost + Fixed Overhead cost…

Answered: XYZ Inc. sells a single product for $10…

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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2. A company sells a single product at a price of $20 per unit. Variable expenses are$12 per unit. The company’s contribution format income statement for the mostrecent month follows:Total Per UnitSales (15,000 units) $300,000 $20Variable expenses 180,000 12Contribution margin 120,000 $8Fixed expenses 100,000Net operating income $20,000If the company sells 16,500 units next month, what should be the company’s totalcontribution margin? Show your calculations. Suggested approach: Total number of units sold × Unit CM **Pls help me im clear soultion with accurate answers pls thank u
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.
Moyas Corporation sells a single product for $20 per unit. Last year, the company's sales revenue was $285,000 and its net operating income was $45,500. If fixed expenses totaled $97,000 for the year, the break-even point in unit sales was: Multiple Choice O 16,525 units 7,125 units 9,700 units 14,250 units
A Company produces a single product which sells for $20 per unit. Variable Cost is $15 and fixed cost for the year is $630,000 Required: (1) Calculate Sales value needed to earn profit of 10% on sales (2) Calculate sales price per unit if BEP down to 120,000 units
Sanjay Company has monthly fixed costs of $112.000. The variable costs are $5.00 per unit. The sales price per unit is $20.00 and they sold 8,000 units. Sanjay Company's total sales revenue is A. $120,000 B. $8,C00 C. $112,000 D. $160.000
Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the company's sales revenue be if it wants to earn $50,000 next year? $192,000 O $208,000 $226,667 $211,111 None of the above
Last month Dexter Company had a $20,520 loss on sales of $144,000. Fixed costs are $72,360 a month. By how much do sales have to increase for Dexter to break even? Multiple Choice O O O O $51,840 $57,000 $72,360 $92,880
Giddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent. The company's monthly fixed expenses are $28,800. If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue? (Ignore income taxes.)
Sannella Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 220 66 $ 154 Percent of Sales 100% 30% 70% Fixed expenses are $991,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change?
A company produces several product lines. One of those lines generates the following annual cost and production data: The company adds 40% to its production cost in selling to the retailer. The retailer in turn adds a 50% profit margin when selling to its customers. How much would it cost a retailer to buy 100 units of the product? (a) $4800 (b) $6720 (c) $7200 (d) $1008
Honeysuckle Manufacturing has the following data: Selling Price $ 60 Variable manufacturing cost $ 33 Fixed manufacturing cost $ 250,000 per month Variable selling & administrative costs $ 9 Fixed selling & administrative costs $ 120,000 per month What dollar sales volume does Honeysuckle need to achieve a $50,000 operating profit per month? $933,333. $1,233,333. $7,560,000. $1,400,000.
Royal Lawncare Company produces and sells two packaged products—Weedban and Greengrow. Revenue and cost information relating to the products follow: Product Weedban Greengrow Selling price per unit $ 9.00 $ 37.00 Variable expenses per unit $ 3.00 $ 13.00 Traceable fixed expenses per year $ 134,000 $ 36,000 Last year the company produced and sold 45,000 units of Weedban and 17,000 units of Greengrow. Its annual common fixed expenses are $107,000. Required: Prepare a contribution format income statement segmented by product lines.

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