4-35 The Carey company sold 100,00 units....
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4-35 The Carey company sold 100,00 units....
(1)-(4)
ould be obtained through an additional facility that...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: $25.00 Selling price per unit Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 $276,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: Selling price per unit $25.00 Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $276,000 $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...
The Doral company manufactures and sells pens. 5,600,000 units are sold per year at $0.50 per...
The Doral company manufactures and sells pens. 5,600,000 units are sold per year at $0.50 per unit. Fixed costs are $870,000 per year. Variable costs = $0.30 per unit. 1. What is the current breakeven point in revenues? 2. A $0.05 per unit increase in variable costs results in a new operating (income or loss?) of $? 3. A 10% increase in fixed costs and a 10% increase in units sold results in a new operating (income or loss?) of...
Bud, Inc. sold 10,000 units for $70/unit of its only product last year. Operating information from...
Bud, Inc. sold 10,000 units for $70/unit of its only product last year. Operating information from last year is shown below: Total Cost Total Manufacturing Costs $440,000 Selling & Administrative Expenses Variable: $ 60,000 Fixed: $ 32,000 Bud management has indicated that manufacturing costs are 50% variable and 50% fixed. Management does not expect a change in the price/cost structure for next year. What percentage of each sale goes toward profit after the breakeven point is reached? If sales increase by $70,000, how...
The East Company is operating at full capacity and sold 100,000 units at a price of...
The East Company is operating at full capacity and sold 100,000 units at a price of $80 per unit during 2020. Its gross margin (profit) income statement for 2020 is as follows: Sales $8,000,000 Cost of goods sold 4,000,000 Gross profit 4,000,000 Operating expenses: Selling expenses $2,500,000 Administrative expenses 500,000 Total operating expenses 3,000,000 Operating income $1,000,000 The proportion of the above costs between fixed and variable is as follows: Fixed Variable Cost of goods sold $4,000,000 35% 65% Selling...
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled 1883,400, and...
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled 1883,400, and fixed costs totaled $549,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000 Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Carey Company had sales in 2019 of $1,923,000 on 64,100 units. Variable costs totaled $897,400, and...
Carey Company had sales in 2019 of $1,923,000 on 64,100 units. Variable costs totaled $897,400, and fixed costs totaled $502,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Carey Company had sales in 2016 of $1,792,000 on 64,000 units. Variable costs totaled $1.152.000, and...
Carey Company had sales in 2016 of $1,792,000 on 64,000 units. Variable costs totaled $1.152.000, and fixed costs totaled $479,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers In the form of a sales price reduction. The...
The Brewer Company manufactures and sells pens. Currently, 5,300,000 units are sold per year at $0.50 per unit. Fixed costs are $900,000 per year. Variable costs are $0.30 per unit Read the requirements. Requirements Requireme (a) Start by Operating income Consider each case separately: 1. a. What is the current annual operating income? b. What is the current breakeven point in revenues? Compute the new operating income for each of the following changes: 2. A $0.08 per unit increase in...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: $25.00 Selling price per unit Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 $276,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
The Maxwell Company manufactures and sells a single product. Price and cost data regarding Maxwell's product and operations are as follows: Selling price per unit $25.00 Variable cost per unit Raw materials Direct Labor Manufacturing Overhead 11.00 5.00 2.50 Fixed Manufacturing Overhead $192,000 Annual Fixed Selling and Administration Variable Selling costs per unit sold $276,000 $1.30 Forecasted Annual Sales Volume (120,000 units) $3,000,000 Required: Show your calculations 1. Maxwell's breakeven point in units is? 2. Maxwell's breakeven point in dollars...
Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...
The East Company is operating at full capacity and sold 100,000 units at a price of $80 per unit during 2020. Its gross margin (profit) income statement for 2020 is as follows: Sales $8,000,000 Cost of goods sold 4,000,000 Gross profit 4,000,000 Operating expenses: Selling expenses $2,500,000 Administrative expenses 500,000 Total operating expenses 3,000,000 Operating income $1,000,000 The proportion of the above costs between fixed and variable is as follows: Fixed Variable Cost of goods sold $4,000,000 35% 65% Selling...
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled 1883,400, and fixed costs totaled $549,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000 Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Carey Company had sales in 2019 of $1,923,000 on 64,100 units. Variable costs totaled $897,400, and fixed costs totaled $502,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The...
Carey Company had sales in 2016 of $1,792,000 on 64,000 units. Variable costs totaled $1.152.000, and fixed costs totaled $479,000 A new raw material is available that will decrease the variable costs per unit by 20% (or $3.60). However, to process the new raw material, fixed operating costs will increase by $98,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers In the form of a sales price reduction. The...
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