Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company. To compute: The unit product cost and prepare an income statement for year 1 and year 2.

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Answer 1

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Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

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t 0 ences Mc Graw Hill Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Break even point $ 25 $ 20 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing…

Question: 077 O Brie Company manufactures and sells one product. The following information pertains to each of the company's first three years of operations: Variable costs per unit: Manufacturing: Direct materials: $25 Direct labor: $17 Variable manufacturing overhead: $4 Variable selling and administrative: $2 Fixed costs per year: Fixed manufacturing overhead: $550,000 Fixed selling and administrative expenses: $140,000 During its first year of operations, O Brien produced 94,000 units and sold 78,000 units. During its second year of operations, it produced 80,000 units and sold 91,000 units. In its third year, O Brien produced 83,000 units and sold 78,000 units. The selling price of the company's product is $79 per unit. Assume the company uses absorption costing and a LIFO inventory flow assumption. A) Compute the unit product cost for Year 1, Year 2, and Year 3. B) Prepare an income statement for Year 1, Year 2, and Year 3.

Answer 2

Question

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

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Answer 3

Question

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

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Answer 4

Question

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

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Answer 5

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

Answer 6

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

Answer 7

Chapter 4A, Problem 4A.4P

1

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2.

Answer 8

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

Answer 9

2

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To compute: The unit product cost and prepare an income statement for year 1 and year 2 and

Answer 10

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

Answer 11

3

To determine

Introduction: Cost volume profit analysis (CVP) is used to ascertain the effect on the company’s net income and operating income with respect to changes in costs and volume of the production of the company. The break-even point is the level of sales that is the minimum required to overcome fixed and variable costs of the company. It is the condition of no profits and no loss for the company.

To prepare: The reconciliation that explains the difference between super variable costing and variable costing net operating income for years 1 and 2.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 4A - Super-Variable Costing Income Statement LO4â€”6...Ch. 4A - Super-Variable Costing and Variable Costing Unit...Ch. 4A - Super-Variable Costing and Variable Costing Unit...Ch. 4A - Prob. 4A.4P Ch. 4A - Super-Variable Costing, Variable Costing, and...

Solution Summary: The author explains that cost volume profit analysis (CVP) is used to ascertain the effect on the company's net income and operating income with respect to changes in costs and volume of the production.

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