Homework Answers
| a | ||
| Fixed costs | 51000 | |
| Divide by Unit Contribution margin | 12 | =16-4 |
| Break-even sales in units | 4250 | |
| b | ||
| Fixed costs plus operating profit | 81000 | =51000+30000 |
| Divide by Unit Contribution margin | 12 | =16-4 |
| Number of units to be sold | 6750 |
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Required information Exercise 3-31 and 3-32 (Algo) (LO 3-1) [The following information applies to the questions...
Required information [The following information applies to the questions displayed below.) Warner Clothing is considering the...
Required information [The following information applies to the questions displayed below.) Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 12 per unit 4 per unit 46,000 per month Required: a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make an operating profit of $36,000?...
Required information Exercise 3-31 and 3-32 (Algo) (LO 3-1) (The following information applies to the questions...
Required information Exercise 3-31 and 3-32 (Algo) (LO 3-1) (The following information applies to the questions displayed below.) Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 16 per unit 4 per unit 51,000 per month Exercise 3-32 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Assume that the company plans to sell 6,000 units per...
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis 3-31. Basic Decision Analysis Using CVP Warner Clothing is considering...
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis 3-31. Basic Decision Analysis Using CVP Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. LO 3-1) Sales price............. Variable costs .......... Fixed costs ............ $ 15 per unit 3 per unit 42,000 per month Required a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make...
[The following information applies to the questions displayed below.] Warner Clothing is considering the introduction of...
[The following information applies to the questions
displayed below.]
Warner Clothing is considering the introduction of a new
baseball cap for sales by local vendors. The company has collected
the following price and cost characteristics.
Sales price
$
18
per unit
Variable costs
2
per unit
Fixed costs
52,000
per month
a. What number must Warner sell per month to
break even?
b. What number must Warner sell per month to
make an operating profit of $40,000?
Assume that the...
[The following information applies to the questions displayed below.] Warner Clothing is considering the introduction of...
[The following information applies to the questions displayed below.] Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. Sales price $ 19 per unit Variable costs 3 per unit Fixed costs 50,000 per month Suppose that fixed costs for the year are 10 percent lower than projected, and variable costs per unit are 10 percent higher than projected. What impact will these cost...
Required information (The following information applies to the questions displayed below.] Warner Clothing is considering the...
Required information (The following information applies to the questions displayed below.] Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 12 per unit 4 per unit 46,000 per month Assume that the company plans to sell 8,000 units per month. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the...
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted...
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 91 (68) $ 23 Supreme $126 (82) $ 44 Fanning expects to incur annual fixed costs of $155,290. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme Required a. Determine the total number of products (units of...
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors....
Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics: Sales price $15 per unit Variable costs 5 per unit Fixed costs 50,000 per month Required: What number must Warner sell per month to break even? 5,000 b. What number must Warner sell per month to make an operating profit of $34,000? $8,400 Assume that the company plans to sell 9,000...
Exercise 3-36 (Algo) CVP and Margin of Safety (LO 3-1, 2) Bristol Car Service offers airport...
Exercise 3-36 (Algo) CVP and Margin of Safety (LO 3-1, 2) Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $620. Required: a. How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 325 trips is a reasonable forecast of...
Required information Problem 21-3A CVP analysis and charting LO P2, P3 (The following information applies to...
Required information Problem 21-3A CVP analysis and charting LO P2, P3 (The following information applies to the questions displayed below.) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price...
Required information [The following information applies to the questions displayed below.) Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 12 per unit 4 per unit 46,000 per month Required: a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make an operating profit of $36,000?...
Required information Exercise 3-31 and 3-32 (Algo) (LO 3-1) (The following information applies to the questions displayed below.) Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 16 per unit 4 per unit 51,000 per month Exercise 3-32 (Algo) Basic Decision Analysis Using CVP (LO 3-1) Assume that the company plans to sell 6,000 units per...
Chapter 3 Fundamentals of Cost-Volume-Profit Analysis 3-31. Basic Decision Analysis Using CVP Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. LO 3-1) Sales price............. Variable costs .......... Fixed costs ............ $ 15 per unit 3 per unit 42,000 per month Required a. What number must Warner sell per month to break even? b. What number must Warner sell per month to make...
[The following information applies to the questions
displayed below.]
Warner Clothing is considering the introduction of a new
baseball cap for sales by local vendors. The company has collected
the following price and cost characteristics.
Sales price
$
18
per unit
Variable costs
2
per unit
Fixed costs
52,000
per month
a. What number must Warner sell per month to
break even?
b. What number must Warner sell per month to
make an operating profit of $40,000?
Assume that the...
Required information (The following information applies to the questions displayed below.] Warner Clothing is considering the introduction of a new baseball cap for sales by local vendors. The company has collected the following price and cost characteristics. $ Sales price Variable costs Fixed costs 12 per unit 4 per unit 46,000 per month Assume that the company plans to sell 8,000 units per month. Consider requirements (b), (c), and (d) independently of each other. Required: a. What will be the...
Exercise 3-15A (Algo) Multiple product break-even analysis LO 3-6 Fanning Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 91 (68) $ 23 Supreme $126 (82) $ 44 Fanning expects to incur annual fixed costs of $155,290. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme Required a. Determine the total number of products (units of...
Exercise 3-36 (Algo) CVP and Margin of Safety (LO 3-1, 2) Bristol Car Service offers airport service in a mid-size city. Bristol charges $38 per trip to or from the airport. The variable cost for a trip totals $36, for fuel, driver, and so on. The monthly fixed cost for Bristol Rainbow Tours is $620. Required: a. How many trips must Bristol sell every month to break even? b. Bristol's owner believes that 325 trips is a reasonable forecast of...
Required information Problem 21-3A CVP analysis and charting LO P2, P3 (The following information applies to the questions displayed below.) Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year's plans call for a $200 selling price...
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