a) | Variable cost per unit | |||||
kevlar | 250.00 | |||||
resin & supplies | 100.00 | |||||
finishing kit | 170.00 | |||||
labour | 420.00 | |||||
selling & administrative -variable | 400.00 | |||||
variable cost per unit | 1,340.00 | |||||
b) | unit contribution margin | |||||
Selling price | 2,000.00 | |||||
Less:variable cost | 1,340.00 | |||||
unit contribution margin | 660.00 | |||||
when selling price is increased to 2200 &fixed manufacturing overhead to 360000 | ||||||
Selling price | 2,200.00 | |||||
Less:variable cost | 1,340.00 | |||||
unit contribution margin | 860.00 | |||||
c) | Break even point in units=Fixed expenses/Contribution per unit | |||||
Fixed Expenses | ||||||
Manufacturing overhead | 240,000.00 | |||||
Selling & administrative expense | 119,000.00 | |||||
Total fixed expenses | 359,000.00 | |||||
Break even point(units)=359000/660 | ||||||
543.94 | ||||||
that is 544 units | ||||||
when selling price is increased to 2200 &fixed manufacturing overhead to 360000 | ||||||
Manufacturing overhead | 360,000.00 | |||||
Selling & administrative expense | 119,000.00 | |||||
Total fixed expenses | 479,000.00 | |||||
Break even point(units)=479000/860 | ||||||
556.98 | ||||||
557.00 | ||||||
d) | To achieve Target income 270000 | |||||
Total fixed expense | 359,000.00 | |||||
Target income | 270,000.00 | |||||
total fixed expense+target income(1) | 629,000.00 | |||||
contribution margin(2) | 660.00 | |||||
unit to be sold(1/2) | 953.03 | |||||
that is 953 units | ||||||
when selling price is increased to 2200 &fixed manufacturing overhead to 360000 | ||||||
To achieve Target income 270000 | ||||||
Total fixed expense | 479,000.00 | |||||
Target income | 270,000.00 | |||||
total fixed expense+target income(1) | 749,000.00 | |||||
contribution margin(2) | 860.00 | |||||
unit to be sold(1/2) | 870.93 | |||||
that is 871 units | ||||||
e) | Margin of safety | |||||
actual(expected) sales | 2,000,000.00 | |||||
break even sales | 1,088,000.00 | |||||
margin of safety in dollars=(Expected sales-breakeven sales | ||||||
(2000000-1088000) | 912,000.00 | |||||
Margin of safety Ratio | ||||||
Margin of safety in dollars(a) | 912,000.00 | |||||
actual sales(b) | 2,000,000.00 | |||||
Margin of safety Ratio(a/b) | 0.46 | |||||
when selling price is increased to 2200 &fixed manufacturing overhead to 360000 | ||||||
Margin of safety | ||||||
actual(expected) sales | 2,200,000.00 | |||||
break even sales | 1,196,800.00 | |||||
margin of safety in dollars=(Expected sales-breakeven sales | ||||||
1,003,200.00 | ||||||
Margin of safety Ratio | ||||||
Margin of safety in dollars(a) | 1,003,200.00 | |||||
actual sales(b) | 2,200,000.00 | |||||
Margin of safety Ratio(a/b) | 0.46 | |||||
NT DESIGNS and Diane Buswell, controller at Curr composite models of the kayak division. Th Ball...
3 (a) Calculate variable cost per unit. Current Designs.xls Data Review View Home Insert Page Layout Formulas Kevlar Kevlar Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses - variable Total variable costs per unit 2 Resin and supplies 3 Finishing kit (seat, rudder, ropes, etc.) 4 Labor 5 Selling and administrative expenses variable 6 Selling and administrative expenses—fixed 7 Manufacturing overhead-fixed $250 per kayak $100 per kayak $170 per kayak $420 per kayak $400...
Enable Editing (0) PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit it's safer to stay in Protected view K19 DK 1 CD5 - EXCEL Tutorial 3 CURRENT DESIGNS 4 Bill Johnson, sales manager, and Diane Buswell, controller at Current Designs are beginning to analyze the cost 5 considerations for one of the composite models of the kayak division. They have provided the following production 6 and operational costs necessary to produce one composite...
CD6 EXCEL Tutorial CURRENT DESIGNS The following information is available for each product line. urrent Designs manufactures two different types of kayak, rotomolded kayaks and composite kayaks. Rotomolded Sales price/unit Variable costs/unit $950 $570 Composite $2,000 $1,340 The company's fixed costs are $820,000. An analysis of the sales mix identifies tha make up 80% of the total units sold t rotomolded kayaks Instructions (a) D etermine the weighted-average unit contribution margin for Current Designs. (b) Determine the break-even points in...
Current Designs CD9 Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded Extensive meetings with members of the sales department and executive team have resulted in the lowing unit sales projections for 2020. Quarter 1 1,000 kayaks Quarter 2 1,500 kayaks Quarter 3 750 kayaks Quarter 4 750 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2021...
Current Designs CD9 Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded Extensive meetings with members of the sales department and executive team have resulted in the lowing unit sales projections for 2020. Quarter 1 1,000 kayaks Quarter 2 1,500 kayaks Quarter 3 750 kayaks Quarter 4 750 kayaks Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20% of the next quarter's anticipated sales. Preliminary sales projections for 2021...
Exercise 5-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $120 and of each door is S270. The variable cost of a window is S72.50 and of a door is $185.00. Fixed costs are S275,000. (Enter your "per unit" values in two decimal places.) Answer is not complete. unit. Selling Price per u nit Total per composite unit Windows Doors Determine the...
PRINTER VERSION BACK NEXT Assume that Current Designs will have sales of $3.60 million with two-thirds of the sales dollars in rotomoulded kayaks and one-third of the sales dollars in composite $805,000 of fixed costs are allocated to the rotomoulded kayaks and $196,040 to the composite kayaks, prepare a CVP income statement for each product line. Rotomoulded Kayaks Composite Kayaks LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT LINK TO TEXT Using the...
Decision Making 6.1 a-d, e1 Current Designs manufactures two different types of kayaks: rotomoulded kayaks and composite kayaks. The following information is available for each product line. Sales price/unit Variable costs/unit Rotomoulded Composite $1,000 $2,000 600 1,340 The company's fixed costs are $849,760. An analysis of the sales mix identifies that rotomoulded kayaks make up 80% of the total units sold. Determine the weighted average unit contribution margin for Current Designs. Weighted average unit contribution margint LINK TO TEXT LINK...
Exercise 18-22 CVP analysis using composite units LO P4 Handy Home sells windows and doors in the ratio of 8:2 (windows:doors). The selling price of each window is $200 and of each door is $500. The variable cost of a window is $125 and of a door is $350. Fixed costs are $900,000. (1) Determine the selling price per composite unit. Quantity Selling Price per unit Total per composite unit Windows Doors Total per composite unit (2) Determine the variable...
ašes Current Designs Excel CD9 Diane Buswell is preparing the 2020 budget for one of Current Designs' rotomolded kayaks. Extensive meetings with members of the sales department and executive team have resulted in the fol- lowing unit sales projections for 2020 1,000 kayaks 1,500 kayaks 750 kayaks 750 kayaks Quarter Quarter 2 Quarter 3 Quarter 4 Current Designs' policy is to have finished goods ending inventory in a quarter equal to 20 % of the next quarter's anticipated sales. Preliminary...