Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014. Given information: 2014, Variable costs are $2,000,000. Fixed costs are $2,500,000. Operating income is $180,000. Number of units sold are 500,000. Total investment is $ 2,250,000

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Answer 1

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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i need financial question with correct solution

Lawrence Industries plans to produce 30,000 units next period at a denominator activity of 45,000 direct labor hours. The direct labor wage rate is $16.00 per hour. The company's standards allow 2.2 yards of direct materials for each unit of product; the material costs $8.50 per yard. The company's budget includes a variable manufacturing overhead cost of $3.25 per direct labor hour and fixed manufacturing overhead of $270,000 per period. Using 45,000 direct labor hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

Can you show me the correct approach to solve this financial accounting problem using suitable standards?

Answer 2

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Answer 3

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

4.

To determine

Concerns in implementing CEO’s plan.

Answer 6

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

Answer 7

Chapter 13, Problem 13.25P

1.

To determine

To calculate: Total sales revenue, selling price, rate of return on investment and markup percentage on full cost of product for the year 2014.

Given information:

2014,

Variable costs are $2,000,000.

Fixed costs are $2,500,000.

Operating income is $180,000.

Number of units sold are 500,000.

Total investment is $ 2,250,000

Answer 8

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

Answer 9

2.

To determine

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.

Answer 10

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

Answer 11

3.

To determine

To calculate: Operating income with reduction in units sold by 5%.

Answer 12

4.

To determine

Concerns in implementing CEO’s plan.

Answer 13

4.

To determine

Concerns in implementing CEO’s plan.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

Ch. 13 - What are the three major influences on pricing...Ch. 13 - Relevant costs for pricing decisions are full...Ch. 13 - Describe four purposes of cost allocation.Ch. 13 - How is activity-based costing useful for pricing...Ch. 13 - Describe two alternative approaches to long-run...Ch. 13 - What is a target cost per unit?Ch. 13 - Describe value engineering and its role in target...Ch. 13 - Give two examples of a value-added cost and two...Ch. 13 - It is not important for a company to distinguish...Ch. 13 - Prob. 13.10Q

To calculate: New selling price. Given information: Reduction in fixed cost is by $225,000. Reduction is per unit sale price is by $0.30.

To calculate: Operating income with reduction in units sold by 5%.

Concerns in implementing CEO’s plan.

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Chapter 13 Solutions

To calculate: New selling price.

Given information:

Reduction in fixed cost is by $225,000.

Reduction is per unit sale price is by $0.30.