Flannigan Company manufactures and sells a single product that sells for $580 per unit, variable costs...

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Flannigan Company manufactures and sells a single product that sells for $580 per unit, variable costs are $319. Annual fixed

A companys product sells at $12.22 per unit and has a $5.33 per unit variable cost. The companys total fixed costs are $96,

A companys product sells at $12.32 per unit and has a $5.48 per unit variable cost. The companys total fixed costs are $96,

At Midland Companys break-even point of 9,800 units, fixed costs are $274.400 and variable costs are $666,400 in total. The

McCoy Brothers manufactures and sells two products, A and Z in the ratio of 4.2 Product A sells for $94; Z sells for $121. Va

Mott Companys sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $22. $32, and $4

A manufacturer reports the following costs to produce 23,000 units in its first year of operations: Direct materials, $23 per

A manufacturer reports the following costs to produce 13,000 units in its first year of operations: Direct materials, $13 per

A manufacturer reports the following information below for its first three years in operation. Year 1 Year 2 Year 3 $81,000 $

Income for year 2 using absorption costing is: Multiple Choice Ο $114,000. Ο $123,450. Ο $111,075. Ο $120,000. $115,275.

The following information is available for a companys utility cost for operating its machines over the last four months. Mon

Using the high-low method, the estimated variable cost per unit for utilities is: Multiple Choice Ο $2.91. Ο $5.10. Ο $2.05.

Using the high-low method, the estimated total fixed cost for utilities is: Multiple Choice o $1,610. o $5,380. o $6,110. o $

business accounting

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Answer 1

Answer #1

1.

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = $580 - 319 = $261 per unit

2.

Contribution margin per unit = $12.22 - 5.33 = $6.89 per unit

3.

Break even points in units = Fixed costs / Contribution per unit

Break even points in units = $96,400 / $6.84 (12.32-5.48)

Break even points in units = 14,094 units

4.

Break even points in units = Fixed costs / Contribution per unit

9,800 = $274,400 / Contribution per unit

Contribution per unit = $274,400/9,800 = $28

Sale price per unit = Variable cost per unit + Contribution per unit

Sale price per unit = $666,400/9,800 + $28

Sale price per unit = $68 + 28 = $96 per unit

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Answer 2

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