you that they understood that you couldn't pay an increase that matched the labor cost so they asked instead for a 25% increase in the original price. Original Costs ($) Direct Material Costs + Direct Labor Costs + Overhead Costs of Goods Sold + SG&A Total Product Cost + Profit Product Price + Tooling Cost (Amortized) Total Price $30.00 $20.00 $22.00 $72.00 $18.00 $90.00 $13.50 $103.50 $8.00 $111.50 What is the NEW price is the supplier asking for? What is the MAXIMUM price you are willing to pay? What other ideas do you have regarding the cost structure? What should you tell your supplier? Costs with 30% increase to Labor ($) Direct Material Costs + Direct Labor Costs + Overhead Costs of Goods Sold + SG&A Total Product Cost + Profit Product Price + Tooling Cost (Amortized) Total Price $30.00 $8.00

you that they understood that you couldn't pay an increase that matched the labor cost so they asked instead for a 25% increase in the original price. Original Costs ($) Direct Material Costs + Direct Labor Costs + Overhead Costs of Goods Sold + SG&A Total Product Cost + Profit Product Price + Tooling Cost (Amortized) Total Price $30.00 $20.00 $22.00 $72.00 $18.00 $90.00 $13.50 $103.50 $8.00 $111.50 What is the NEW price is the supplier asking for? What is the MAXIMUM price you are willing to pay? What other ideas do you have regarding the cost structure? What should you tell your supplier? Costs with 30% increase to Labor ($) Direct Material Costs + Direct Labor Costs + Overhead Costs of Goods Sold + SG&A Total Product Cost + Profit Product Price + Tooling Cost (Amortized) Total Price $30.00 $8.00

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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Use the below table to answer the following questions. Selling Price = $43.00 Fixed Cost $47,200 47, 200 47,200 57, 200 57, 200 57, 200 67,200 67,200 67,200 Required Variable Cost 15 16 17 15 16 17 15 16 17 2,200 $14,400 12, 200 10,000 4,400 2,200 (5,600) (7,800) (10,000) 3,200 $42,400 39, 200 36,000 32,400 29, 200 26,000 22,400 19, 200 16,000 Sales Volume 4,200 Profitability $70,400 66, 200 62,000 60,400 56,200 52,000 50,400 46, 200 42,000 5,200 $98,400 93,200 88,000 88,400 83,200 78,000 78,400 73,200 68,000 6, 200 $126,400 120, 200 114,000 116,400 110, 200 104,000 106,400 100, 200 94,000 a. Determine the sales volume, fixed cost, and variable cost per unit at the break-even point. b. Determine the expected profit if Franklin projects the following data for Delatine: sales, 4,200 bottles; fixed cost, $47,200; and variable cost per unit, $17. c. Franklin is considering new circumstances that would change the conditions described in Requirement b. Specifically, the company has an…
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Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 34,300 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,700 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Please calculate the missing amount in the numbers [1] to [10]. Thank you
A. Determine the missing amounts S.No Unit Selling Price Unit Variable Cost Contribution Margin per unit Contribution Margin Ratio 1 2 3 550 1500 (e) 370 (c) (f) (a) 600 900 (b) (d) 30 B. For Al Farabi Company, variable costs are 75% of sales, and fixed costs are $210,000.Management’snet income goal is $70,000. Compute the required sales needed to achieve management’s target net income of $70,000. (Use the mathematical equation approach.) C. Company A’s costs are mostly variable, whereas Company B’s costs are mostly fixed. When sales increase, which company will tend to realize the greatest increase in profits? Explain.
Sales are 140000 OMR, variable cost = 110000 OMR, profit is 10000 OMR calculate fixed cost Select one: O a. 20000 OMR O b. None of them c. 60000 OMR d. 50000 OMR
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X The figure below shows graphs of the fixed cost function, total cost function and the total revenue function for a certain commodity. 20 8000+ 7000 6000 5000 4000 Dollars ($) 3000- 2000 1000 -10 -1000+ 10 20 30 (a) What is the break-even point? (295,7650) (b) What are the fixed costs? $ Percent of capacity= 40 Units Next Question 50 TR If the selling price per unit is $90, and the variable cost per unit is $20: TC FC 60 70 80 90 100 (c) If the maximum production capacity of the commodity is 110, express the break- even units as a percent of capacity? enter the answer in the form (x,y) e.g. % (round to two decimal places if necessary)
Sales are 250000 OMR, variable cost = 120000 OMR, Fixed cost 90000 calculate BEP sales a. 176076.9 OMR b. 175076.9 OMR c. 173076.9 OMR d. 174076.9 OMR