Question

Jacobs Inc. manufactures ladders. Currently they manufacture and sell 100,000 ladders per year. The variable cost per ladder

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answers :

C) Variable cost will Remain at $8.Per Unit

D) 42%

B) 20 Units

1). within the relevant range Variable cost per Unit is constant

2) CM Ratio = Contrbution Margin /Selling Price = (12-7)/ 12 = 5/12= 41.666= 42%

3) Break Even Units = fixed cost /Contribution MArgin = 100 /5 =20 Units

Add a comment
Know the answer?
Add Answer to:
Jacob's Inc. manufactures ladders. Currently they manufacture and sell 100,000 ladders per year. The variable cost...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...

    Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit S41 Variable costs per unit Manufacturing Marketing and administrative $23 $6 Total fred costs: Manufacturing $75,000 Marketing and administrative $24,000 Ha enorial sales are arranter for 5 winnettarin 37 narunt fiv e remain unchanged and a variable marketing and aiministrativash will O A. Increase...

  • Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...

    Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: Sales price per unit $42 Variable costs per unit: Manufacturing $22 O A. Increase by $89,600 O B. Increase by $212,800 O c. Decrease by $89,600 OD. Increase by $50,400 Click to select your answer. Marketing and administrative Total fixed costs Manufacturing Marketing and administrative $76,000 $24,000 If...

  • Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...

    Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production Sale price per unit $40 Variable costs per unit: Manufacturing Marketing and administrative $23 $5 Total fixed costs: Manufacturing Marketing and administrative $75,000 $22.000 If a special sales order is accepted for 2.900 widgets at a price of $33 per unit, foxed costs increase by $7.000, and variable...

  • Widget Inc manfactures widgets The company has the capacity to produce 100,000 widgets per year, but it currently p...

    Widget Inc manfactures widgets The company has the capacity to produce 100,000 widgets per year, but it currently produces and ses 75 000 per year The following information relates to cum Sales price per unit Variable costs per un Marketing and administrative Maracturing S77000 Marketing and administrative $24000 a special sales order accepted for 5.300 widgets at a price of regular sales are not rected by the special order) p unit. Bred costs remain unchanged and no variable marketing and...

  • 1) 2) 3) 4) 5) If variable costs per unit decreased because of a decrease in...

    1) 2) 3) 4) 5) If variable costs per unit decreased because of a decrease in utility rates, the break-even point would Oa. decrease Ob. increase Oc. remain the same Od. increase or decrease, depending upon the percentage increase in utility rates If sales are $400,000, variable costs are 80% of sales, and operating income is $40,000, what is the operating leverage? Oa. 0.0 Ob. 1.3 Oc. 7.5 Od. 2.0 If fixed costs are $561,000 and the unit contribution margin...

  • how do i solve Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, b...

    how do i solve Widget Inc, manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and solls 75,000 widgets per year. The following information relates to current production Sales price per unit $41 Variable costs per unit: Manufacturing Marketing and administrative $26 $10 Total foxed costs Manufacturing $80,000 Marketing and administrative $24,000 If a special sales order is accepted for 6.500 widgets at a price of $38 per unit, and food costs...

  • q26 Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000...

    q26 Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to current production of seats: $450 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $220 $40 Total fixed costs Manufacturing Marketing and administrative $770,000 $250,000 If a necial caloe arrier is accenter for din cate at a nice of $475 nerunt find onts remain...

  • Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it curren...

    Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...

  • Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000,...

    Spice Inc.'s unit selling price is $46, unit variable costs are $39, fixed costs are $117,000, and current sales are 10,200 units. How much will operating income change if sales increase by 5,900 units? Oa. $112,700 increase Ob. $41,300 increase Oc. $71,400 decrease Od. $71,400 increase

  • Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 12,000 T-shirts at $16...

    Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell 12,000 T-shirts at $16 each in the coming year. Product costs include: Direct materials per T-shirt $5.75 Direct labor per T-shirt $1.25 Variable overhead per T-shirt $0.60 Total fixed factory overhead $43,000 Variable selling expense is the redemption of a coupon, which averages $0.80 per T-shirt; fixed selling and administrative expenses total $19,000. Required: 1. Calculate the: a. Variable product cost per unit b. Total variable cost per...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT