The Jensen Company produces a single product for sale. Based on current accounting records, the company’s unit sales price is $34, unit variable expense is $16 and monthly fixed costs are $46,405.
How many units do they need to sell to make $123,887 in profit?
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
The Jensen Company produces a single product for sale. Based on current accounting records, the company’s...
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 91,200 units per year is:Direct materials $ 1.80Direct labor $ 4.00Variable manufacturing overhead $ 1.00Fixed manufacturing overhead $ 4.25Variable selling and administrative expense $ 2.00Fixed selling and administrative expense $ 3.00 The normal selling price is $20.00 per unit. The company’s capacity is 124,800 units per year. An order has been received from a mail-order house...
Kubin Company’s relevant range of production is 22,000 to 27,000 units. When it produces and sells 24,500 units, its average costs per unit are as follows: Average Cost per Unit: Direct materials$8.20 Direct labor$5.20 Variable manufacturing overhead$2.70 Fixed manufacturing overhead$6.20 Fixed selling expense$4.70 Fixed administrative expense$3.70 Sales commissions$2.20 Variable administrative expense$1.70 1. For financial accounting purposes, what is the total amount of product costs incurred to make 24,500 units? 2. For financial accounting purposes, what is the total amount of...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30 Variable manufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrative expense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: 1. For financial accounting purposes, what is the total amount of...
Kubin Company’s relevant range of production is 20,000 to 23,000 units. When it produces and sells 21,500 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.00 Direct labor $ 5.00 Variable manufacturing overhead $ 2.50 Fixed manufacturing overhead $ 6.00 Fixed selling expense $ 4.50 Fixed administrative expense $ 3.50 Sales commissions $ 2.00 Variable administrative expense $ 1.50 3. For financial accounting purposes, what is the total amount of product...
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. C. Prepare a contribution margin income statement for the month of September when they will sell 900 units. Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The company's monthly fixed expenses are $22,500. d. How many units will Maple need to sell in...
Griggs Company produces a single product with a current selling price of $170. Variable costs are $130 per unit, and fixed costs per month average $6,240. Management is considering increasing the selling price to a proposed $190 per unit. Assume that the variable cost per unit of the product and monthly fixed expenses will not change as a result of the proposed increase in selling price. Hint: Treat each situation (current and proposed price) as separate potential scenarios when evaluating...
Kubin Company’s relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 8.30 Direct labor $ 5.30 Variable manufacturing overhead $ 2.80 Fixed manufacturing overhead $ 6.30 Fixed selling expense $ 4.80 Fixed administrative expense $ 3.80 Sales commissions $ 2.30 Variable administrative expense $ 1.80 Required: 1. For financial accounting purposes, what is the total amount of...
CVP Analysis and Cost Structure (Single Product). Fallon Company produces road bikes. The company has annual fixed costs totaling $10,000,000 and variable costs of $600 per unit. Each unit of product is sold for $1,000. Fallon expects to sell 70,000 units this year. Required: Find the break-even point in units. How many units must be sold to earn an annual profit of $2,000,000? Find the break-even point in sales dollars. What amount of sales dollars is required to earn an...
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 98,400 units per year is: Direct materials $ 1.60 Direct labor $ 3.00 Variable manufacturing overhead $ 0.70 Fixed manufacturing overhead $ 4.95 Variable selling and administrative expenses $ 1.30 Fixed selling and administrative expenses $ 2.00 The normal selling price is $25.00 per unit. The company’s capacity is 117,600 units per year. An order...
Exercise 1 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 99,600 units per year is: Direct materials $ 2.30 Direct labor $ 4.00 Variable manufacturing overhead $ .50 Fixed manufacturing overhead $ 3.85 Variable selling and administrative expense $ 1.50 Fixed selling and administrative expense $ 3.00 The normal selling price is $21 per unit. The company’s capacity is 133,200 units per year....