Homework Answers
Sales price per unit = $150
Reduction in selling price = 7%
New sales price per unit = $150 - 7% of $150 = $139.5
Direct materials cost per unit = $18 per unit
Change in direct materials cost = 10%
New Direct materials cost per unit = $18 - 10% of $18 = $16.2
Total variable costs per unit = Direct labor + Direct materials + Variable manufacturing overhead + Variable selling expenses = $15 + $16.2 + $7.5 + $1.5 = $40.2 per unit
Contribution per unit = New sales price per unit - Variable costs per unit = $139.5 - $40.2 = $99.3 per unit
Total units to be sold = 10,000 units + 15% of 10,000 = 11,500 units
1. Total sales revenue = New sales price per unit * 11,500 units = $139.5 * 11,500 units = $1,604,250
2. Total contribution margin = Contribution per unit * 11,500 units = $99.3 per unit * 11,500 units = $1,141,950
3.Total fixed expenses
Total fixed expenses will be same which they were at the level of 10,000 units. Even, if the company produces more than 10,000 units, the expenses will be same.
Therefore, the total fixed expenses = Fixed expenses per unit * 10,000 units
Fixed expenses per unit = Fixed manufacturing overhead per unit + Fixed selling expenses per unit + Fixed administrative expenses per unit = $50 + $40 + $15 = $105 per unit.
total fixed expenses = Fixed expenses per unit * 10,000 units = $105 per unit * 10,000 units = $1,050,000
Add Answer to:
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit Sales 150.00 Direct labor Direct material Variable manufacturing overhead 15.00 18.00 7.50 50.00 1.50 Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 40.00 Fixed administrative expenses 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x,xxx The company is considering a...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. the company produces and sells only one product. ($ per unit) sales 150.00 direct labor 15.00 direct material 18.00 variable manufacturing overhead 7.50 fixed manufacturing overhead 50.00 variable selling expense 1.50 fixed selling expenses 40.00 fixed administrative expenses 15.00 the relevant range is 8,000-13,000 at the current level of activity, calculate the following: total sales revenue: total contribution margin: total fixed expenses:...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product.: $ Per Unit Sales 150.00 Direct labor Direct material 15.00 18.00 7.50 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 50.00 1.50 40.00 ... 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x.xxx At the current level...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit 150.00 15.00 18.00 Sales Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 7.50 50.00 1.50 40.00 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: Sx.xxx The company is considering an...
The following annual per unit cost data at an activity level of 10,000 units has been...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product: $ per unit Sales. 150.00 Direct labor. 15.00 Direct material. 18.00 Variable manufacturing Overhead. 7.50 Fixed manufacturing Overhead. 50.00 Variable selling expenses. 1.50 Fixed selling expenses. 40 Fixed administrative Expenses. 15 The relevant range is 8000-13000 units. You will be given facts for three different options. Using the facts given, calculate amounts as directed...
A company has provided the following average cost per unit information: $18.00 $12.00 $3.00 Direct materials...
A company has provided the following average cost per unit information: $18.00 $12.00 $3.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expenses Fixed administrative expenses Sales commissions $7.00 $2.00 $6.00 $4.00 Variable administrative expenses $5.00 Total fixed selling expenses are allocated as follows: $60,000 on promotions and the remainder on sales salaries If the company uses sales representatives as the cost object and sells 80,000 units, direct selling expenses are and indirect selling expenses are...
Full capacity in units Current capacity in units Direct materials cost per unit Direct materials cost...
Full capacity in units Current capacity in units Direct materials cost per unit Direct materials cost per unit Manufacturing overhead per unit (variable) Total manufacturing overhead (Fixed) Total selling expenses Total general and administrative expenses Normal selling price per unit 200,000 150,000 $6.00 $4.00 $2.00 $300,000 $100,000 $200,000 $40.00 Using the information shown above, provide the cost formula. If a company produces 10,000 units and sells 8,000 units during the period, which method of computing operating income (absorption or variable)...
Goshford Company produces a single product and has capacity to produce 150,000 units per month. Costs...
Goshford Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its current sales of 120,000 units follow. The regular selling price of the product is $112 per unit. Management is approached by a new customer who wants to purchase 30,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Goshford Company produces a single product and has capacity to produce 145,000 units per month. sales...
Goshford Company produces a single product and has capacity to produce 145,000 units per month. sales of 116,000 units follow. The regular selling price of the product is $132 per unit. Management is approached by a new custome who wants to purchase 29,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company's regular...
Goshford Company produces a single product and has capacity to produce 130,000 units per month. Costs...
Goshford Company produces a single product and has capacity to produce 130,000 units per month. Costs to produce its current sales of 104,000 units follow. The regular selling price of the product is $130 per unit. Management is approached by a new customer who wants to purchase 26,000 units of the product for $78.30 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit Sales 150.00 Direct labor Direct material Variable manufacturing overhead 15.00 18.00 7.50 50.00 1.50 Fixed manufacturing overhead Variable selling expenses Fixed selling expenses 40.00 Fixed administrative expenses 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x,xxx The company is considering a...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product.: $ Per Unit Sales 150.00 Direct labor Direct material 15.00 18.00 7.50 Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 50.00 1.50 40.00 ... 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: $x.xxx At the current level...
The following annual per unit cost data at an activity level of 10,000 units has been provided below. The company produces and sells only one product. $ Per Unit 150.00 15.00 18.00 Sales Direct labor Direct material Variable manufacturing overhead Fixed manufacturing overhead Variable selling expenses Fixed selling expenses Fixed administrative expenses 7.50 50.00 1.50 40.00 15.00 The relevant range is 8,000 - 13,000 units. You must enter your answer in the following format: Sx.xxx The company is considering an...
A company has provided the following average cost per unit information: $18.00 $12.00 $3.00 Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expenses Fixed administrative expenses Sales commissions $7.00 $2.00 $6.00 $4.00 Variable administrative expenses $5.00 Total fixed selling expenses are allocated as follows: $60,000 on promotions and the remainder on sales salaries If the company uses sales representatives as the cost object and sells 80,000 units, direct selling expenses are and indirect selling expenses are...
Full capacity in units Current capacity in units Direct materials cost per unit Direct materials cost per unit Manufacturing overhead per unit (variable) Total manufacturing overhead (Fixed) Total selling expenses Total general and administrative expenses Normal selling price per unit 200,000 150,000 $6.00 $4.00 $2.00 $300,000 $100,000 $200,000 $40.00 Using the information shown above, provide the cost formula. If a company produces 10,000 units and sells 8,000 units during the period, which method of computing operating income (absorption or variable)...
Goshford Company produces a single product and has capacity to produce 150,000 units per month. Costs to produce its current sales of 120,000 units follow. The regular selling price of the product is $112 per unit. Management is approached by a new customer who wants to purchase 30,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Goshford Company produces a single product and has capacity to produce 145,000 units per month. sales of 116,000 units follow. The regular selling price of the product is $132 per unit. Management is approached by a new custome who wants to purchase 29,000 units of the product for $80.10 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is not in the company's regular...
Goshford Company produces a single product and has capacity to produce 130,000 units per month. Costs to produce its current sales of 104,000 units follow. The regular selling price of the product is $130 per unit. Management is approached by a new customer who wants to purchase 26,000 units of the product for $78.30 per unit. If the order is accepted, there will be no additional fixed manufacturing overhead and no additional fixed selling and administrative expenses. The customer is...
Most questions answered within 3 hours.
-
You plan to save $5,700 per year for the next 10 years. After
the last deposit,...
asked 12 minutes ago -
On January 1, 2019, ABC Corp. borrowed $81,000 by signing an
installment loan. The loan will be...
asked 16 minutes ago -
Enzyme X exhibits maximum activity at pH = 5.25. X shows a sharp
decrease in its...
asked 31 minutes ago -
Postulate a reason for why so many aliphatic amino acids are
essential.
asked 30 minutes ago -
Three samples were taken of 4 different dog food bags and their
weights were recorded:
Sample/Observation...
asked 34 minutes ago -
The Beatles had 27 number one hits; a radio station asks
listeners to send in a...
asked 31 minutes ago -
Help with Java Program Please
Create a simple graph class. The graph class should have the...
asked 32 minutes ago -
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 53 minutes ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 56 minutes ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 1 hour ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 1 hour ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 1 hour ago