Please show work clearly as well as choice.Thank you
Homework Answers
| Forecasted income statement | ||
| Alternative #1 | Alternative #2 | |
|
Sales ( Expected sales volume * Selling price per unit ) |
700000 [ 35000*20 ] |
700000 [ 35000*20 ] |
|
(-) Variable costs ( Expected sales volume * Variable cost per unit ) |
280000 [ 35000*8 ] |
420000 [ 35000*12 ] |
| Contribution margin | 420000 | 280000 |
| (-) Fixed costs | 240000 | 140000 |
| Net income | 180000 | 140000 |
| Decision : The company should select Alternative #1, as the net income of it is more than that of Alternative #2 |
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Please show work clearly as well as choice.Thank
you
.) A company is looking into two...
3. (10 Points) A company is looking into two alternative methods of producing its product. The following informatio...
3. (10 Points) A company is looking into two alternative methods of producing its product. The following information about the two alternatives is available. If the company's expected sales volume is 35,000 units, which alternative should be selected? Prepare forecasted income statements to assess the alternatives. Alternative#1 Alternative #2 $12 Variable costs per unit Fixed costs Selling price per unit $240,000 $20 $140,000 $20
The following information is available for Alba Company's maintenance cost over the last four months. Month...
The following information is available for Alba Company's maintenance cost over the last four months. Month January February March April Maintenance Maintenance hours cost 150 $6,000 120 $5,100 2240 $8,100 210 $6,900 Use the high-low method to estimate both the fixed and variable component of its maintenance cost. 2. (5 Points) Identify items a, b, and c in the cos ) Identify items a, b, and c in the cost-volume-profit graph shown below. $20.000 $18.000 $16,000 $14.000 $12.000 Dollars $10,000...
Answer the following questions as required. SHOW ALL WORK! 1. Rays Corporation has received a request...
Answer the following questions as required. SHOW ALL WORK! 1. Rays Corporation has received a request for a special order of 8.000 units of product A for $34.20 each. The normal selling price of this product is $35.70 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product A is computed as follows: Direct Materials 11.60 Direct Labor 2.20 Variable Manufacturing Overhead 7.10 Fixed Manufacturing Overhead 2.90 Unit Product Cost...
QUESTION 5 (20 points) A firm is considering two capacity alternatives: Alternative A and Alternative B....
QUESTION 5 (20 points) A firm is considering two capacity alternatives: Alternative A and Alternative B. Alternative A would have an annual fixed cost of $40,000 and variable costs of $400 per unit. Alternative B would have annual fixed costs of $60,000 and variable costs of $200 per unit. Revenue per unit is expected to be $1000 per unit for Alternative A and $1050 for Alternative B. Complete the following parts using Excel. a) Create a graph for each alternative...
Please show work :) Delta Company produces a single product. The cost of producing and selling...
Please show work :)
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 93,600 units per year is Direct materials $ 2.30 Direct labor $ 2.00 Variable manufacturing overhead $ .60 Fixed manufacturing overhead $ 3.95 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 1.00 The normal selling price is $20 per unit. The company's capacity is 111,600 units...
Question 3: This question is from chapter 5. The question is worth 20 points. (Please show...
Question 3: This question is from chapter 5. The question is worth 20 points. (Please show step by step work to receive full credits) A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A & B, have been identified, and the associated costs and revenue have been estimated. Annual fixed costs would be S12600 for A and S 25200 for B; Variable cost per unit would be S 10.8 for...
ACC 361 Night - Chapter 3 CVP (Show All Work) Taffy Co. manufactures and sells adjustable...
ACC 361 Night - Chapter 3 CVP (Show All Work) Taffy Co. manufactures and sells adjustable windows for remodeling homes and new housing. Taffy developed its budget for the current year assuming that the windows would sell at a price of $500 each. The variable costs for each window were forecasted to be $250 and the annual fixed costs were forecasted to be $130,000. Taffy had targeted a profit of $450,000. While Taffy's sales usually increase during the second quarter,...
can clearly complete the answers ? Swan Lake Company is engaged in producing ballet shoes for...
can clearly complete the answers ?
Swan Lake Company is engaged in producing ballet shoes for children aged 3 to 6. The current yearly sales of ballet shoes are 38,750 pairs at $120 per pair. The variable costs are $80 per pair and fixed costs are $950,000 per year. Jenny, the company's owner, is not satisfied with present profit level. She is planning to put forward one of the following three proposals: Proposal 1: Increase advertising expenditure of $80,000 to...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold 34,000 units of its only product for $18.20 per unit. Manufacturing and selling the product required $119.000 of fixed manufacturing costs and $179,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 3.90 2.90 0.39 0.19 Next year the company will use...
Diego Company manufactures one product that is sold for $81 per unit in two geographic regions—the...
Diego Company manufactures one product that is sold for $81 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 52.000 units and sold 47,000 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 expenses S S S 20 20 4 $936,000 S552,000 The company sold...
3. (10 Points) A company is looking into two alternative methods of producing its product. The following information about the two alternatives is available. If the company's expected sales volume is 35,000 units, which alternative should be selected? Prepare forecasted income statements to assess the alternatives. Alternative#1 Alternative #2 $12 Variable costs per unit Fixed costs Selling price per unit $240,000 $20 $140,000 $20
The following information is available for Alba Company's maintenance cost over the last four months. Month January February March April Maintenance Maintenance hours cost 150 $6,000 120 $5,100 2240 $8,100 210 $6,900 Use the high-low method to estimate both the fixed and variable component of its maintenance cost. 2. (5 Points) Identify items a, b, and c in the cos ) Identify items a, b, and c in the cost-volume-profit graph shown below. $20.000 $18.000 $16,000 $14.000 $12.000 Dollars $10,000...
Answer the following questions as required. SHOW ALL WORK! 1. Rays Corporation has received a request for a special order of 8.000 units of product A for $34.20 each. The normal selling price of this product is $35.70 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product A is computed as follows: Direct Materials 11.60 Direct Labor 2.20 Variable Manufacturing Overhead 7.10 Fixed Manufacturing Overhead 2.90 Unit Product Cost...
QUESTION 5 (20 points) A firm is considering two capacity alternatives: Alternative A and Alternative B. Alternative A would have an annual fixed cost of $40,000 and variable costs of $400 per unit. Alternative B would have annual fixed costs of $60,000 and variable costs of $200 per unit. Revenue per unit is expected to be $1000 per unit for Alternative A and $1050 for Alternative B. Complete the following parts using Excel. a) Create a graph for each alternative...
Please show work :)
Delta Company produces a single product. The cost of producing and selling a single unit of this product at the company's normal activity level of 93,600 units per year is Direct materials $ 2.30 Direct labor $ 2.00 Variable manufacturing overhead $ .60 Fixed manufacturing overhead $ 3.95 Variable selling and administrative expenses $ 1.80 Fixed selling and administrative expenses $ 1.00 The normal selling price is $20 per unit. The company's capacity is 111,600 units...
Question 3: This question is from chapter 5. The question is worth 20 points. (Please show step by step work to receive full credits) A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives, A & B, have been identified, and the associated costs and revenue have been estimated. Annual fixed costs would be S12600 for A and S 25200 for B; Variable cost per unit would be S 10.8 for...
ACC 361 Night - Chapter 3 CVP (Show All Work) Taffy Co. manufactures and sells adjustable windows for remodeling homes and new housing. Taffy developed its budget for the current year assuming that the windows would sell at a price of $500 each. The variable costs for each window were forecasted to be $250 and the annual fixed costs were forecasted to be $130,000. Taffy had targeted a profit of $450,000. While Taffy's sales usually increase during the second quarter,...
can clearly complete the answers ?
Swan Lake Company is engaged in producing ballet shoes for children aged 3 to 6. The current yearly sales of ballet shoes are 38,750 pairs at $120 per pair. The variable costs are $80 per pair and fixed costs are $950,000 per year. Jenny, the company's owner, is not satisfied with present profit level. She is planning to put forward one of the following three proposals: Proposal 1: Increase advertising expenditure of $80,000 to...
Required information [The following information applies to the questions displayed below.] This year Burchard Company sold 34,000 units of its only product for $18.20 per unit. Manufacturing and selling the product required $119.000 of fixed manufacturing costs and $179,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $ 3.90 2.90 0.39 0.19 Next year the company will use...
Diego Company manufactures one product that is sold for $81 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 52.000 units and sold 47,000 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 expenses S S S 20 20 4 $936,000 S552,000 The company sold...
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