Homework Answers
1. Required sales = (180000+10000)/(1-0.60) = $700000
2. Variable cost = 450000*(1-0.30) = $315000
Add Answer to:
Determine the required sales if the variable cost per unit is 60% of the selling price,...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Co...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Costs Annual Fixed Selling and Admin Costs 150 80 25 40,000 s 60,000 REQUIRED Determine the break-even point in units and dollars using the following approaches. 1 Equation method 2 Contribution margin per unit. 3 Contribution margin ratio. 4 Confirm your results by preparing a contribution margin income statement for the breakeven sales...
Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable...
Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable cost are 60%. For the year 2019, management estimates the following revenues and costs. $ Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Selling expenses - variable Selling expenses - fixed SGA expenses - Variable SGA expenses- fixed 2,500,000 630,000 560,000 350,000 480,000 80,000 85,000 40,000 100,000 5 Instructions: 6 (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Instructions:...
IHG Company produces widgets. The widgets are sold for $2.00 per unit to wholesalers Unit variable...
IHG Company produces widgets. The widgets are sold for $2.00 per unit to wholesalers Unit variable cost are 60 % . For the year 2019, management estimates the following revenues and costs Selling expenses Selling expenses SGA expenses V SGA expenses- fix Sales Direct materials 70,000 75,000 30,000 1.100.000 530,000 460,000 Direct labor Manufacturing overhead- variable Manufacturing overhead -fixed 400,000 80,000 380,000 Instructions: (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Compute the break-even point in...
Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60...
Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $1,614,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Q $640 $320 $320 Z 340 220 120 The sales mix for products Q and Z is 40% and 60%, respectively. Determine the break-even point in units of Q and Z. If required, round your answers...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
Heyden Company has fixed costs of $381,000. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $381,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price Variable Cost per Unit Contribution Margin per Unit Model 94 $110 $60 $50 Model 81 170 120 50 The sales mix for products Model 94 and Model 81 is 70% and 30%, respectively. Determine the break-even point in units of Model 94 and Model 81 of the overall (total)...
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and...
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $280 $190 $90 ZZ 170 140 30 The sales mix for Products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Michael Company has fixed costs of $814,880. The unit selling price, variable cost per unit, and...
Michael Company has fixed costs of $814,880. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $740 $480 $260 ZZ 560 440 120 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008 40% 60% The company is currently selling 5,200 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $6,900 decrease of $6,600...
Problem 11-4 NYM Manufacturing Company makes a product. Selling Price per unit Variable manufacturing cost per unit Variable selling expense per unit (sales commissions) Annual Fixed Manufacturing Costs Annual Fixed Selling and Admin Costs 150 80 25 40,000 s 60,000 REQUIRED Determine the break-even point in units and dollars using the following approaches. 1 Equation method 2 Contribution margin per unit. 3 Contribution margin ratio. 4 Confirm your results by preparing a contribution margin income statement for the breakeven sales...
Zoom Company produces widgets. The widgets are sold for $3.00 per unit to wholesalers. Unit variable cost are 60%. For the year 2019, management estimates the following revenues and costs. $ Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed Selling expenses - variable Selling expenses - fixed SGA expenses - Variable SGA expenses- fixed 2,500,000 630,000 560,000 350,000 480,000 80,000 85,000 40,000 100,000 5 Instructions: 6 (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Instructions:...
IHG Company produces widgets. The widgets are sold for $2.00 per unit to wholesalers Unit variable cost are 60 % . For the year 2019, management estimates the following revenues and costs Selling expenses Selling expenses SGA expenses V SGA expenses- fix Sales Direct materials 70,000 75,000 30,000 1.100.000 530,000 460,000 Direct labor Manufacturing overhead- variable Manufacturing overhead -fixed 400,000 80,000 380,000 Instructions: (a) Compute the contribution margin ratio. (Round to the nearest full percent.) Compute the break-even point in...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
Percent of Selling price Variable expenses Contribution margin Per Unit $150 60 $ 90 Sales 1008 40% 60% The company is currently selling 5,200 units per month. Fixed expenses are $208,000 per month. The marketing manager believes that a $6,600 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice decrease of $6,900 decrease of $6,600...
Most questions answered within 3 hours.
-
Calculate the change in the Gibbs energy of the system for the
following processes: a) 6.0...
asked 1 minute from now -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 9 minutes ago -
After reading the Primary Care scenario in the Allied Health
Community, what could have been implemented...
asked 2 minutes ago -
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 5 minutes ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 10 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 7 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 8 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 9 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 16 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 27 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 47 minutes ago -
Your friend is interested in the characteristics of fast tree
planters. He searched through the records...
asked 54 minutes ago