Homework Answers
2a) The fixed cost in alternative 1 is the cost of the hand tools which is Gh2000 and a labour cost of Gh 3 per unit
Under alternative 2, the fixed cost is Gh 30,000 and a cost of Gh 1 per unit. So there is a difference of Gh 2 in the production of each unit. The difference in fixed cost is Gh28000. So we need to cover this extra fixed cost of Gh 28000 by producing more units.
6000 units can be produced in a day. So each day, the savings in cost will be 6000*2 = Gh 12000
So in order to cover the extra cost of Gh 28000 and reach the Breakeven point, it will take,
28000 / 12000
= 2.333 days or 2 days and 8 hours.
Add Answer to:
2a. It costs GhC 2,000.00 for hand tools and GhC 3.00 labour per unit to manufacture...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $65; white, $95; and blue, $120. The per unit variable costs to manufacture and sell thes...
National Co. manufactures and sells three products: red, white, and blue. Their unit sales prices are red, $65; white, $95; and blue, $120. The per unit variable costs to manufacture and sell these products are red, $50; white, $70; and blue, $90. Their sales mix is reflected in a ratio of 2:2:1 (red:white:blue). Annual fixed costs shared by all three products are $160,000. One type of raw material has been used to manufacture all three products. The company has developed...
Exercise 3-2A Per-unit contribution margin approach LO 3-1 Solomon Corporation sells products for $38 each that...
Exercise 3-2A Per-unit contribution margin approach LO 3-1 Solomon Corporation sells products for $38 each that have variable costs of $20 per unit. Solomon's annual fixed cost is $430,200. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
$170 per unit. The company incurs variable manufacturing costs of $83 per unit. Variable selling expenses...
$170 per unit. The company incurs variable manufacturing costs of $83 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $498.000, and fixed selling and administrative costs are $236.400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by...
Cooper Company sells a product at $50 per unit that has unit variable costs of $20....
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable...
Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $25000 and variable costs will be 50% of the selling price. The new break-even point in units is: 12350 14800 13800 17250 Vaughn Manufacturing can produce 100 units of a component part with the following Direct Materials Direct Labor Variable Overhead...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and Determine the break-even point in units and dollars using each of the following approaches: b. Use the c eferencesd. Prepare a Req A to C 29 5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000,...
Question 2 Multimake Limited is considering the launch of a new product. The variable costs (direct...
Question 2 Multimake Limited is considering the launch of a new product. The variable costs (direct labour and materials) are estimated at $7 per unit. New fixed costs relating to the product are estimated at $350,000 per annum, and the sale price will be $12 per unit. Required (a) Define and calculate the 'break-even point' in units for the new product. (5 marks) (b) Further information reveals that sales of up to 50.000 units per annum will be made at...
d. If Anise sells for $7/unit and Basil sells for $4/unit, calculate the contribution margin per...
d. If Anise sells for $7/unit and Basil sells for $4/unit, calculate the contribution margin per unit per product. (1.5 marks) e. Calculate the operating income if sales increase by 10%. (1.5 marks) f. Calculate how many units must be sold to break-even. (2.5 marks) g. If the income tax rate is 30%, calculate how of $12,000. (2.5 marks) h. Using the July results, calculate the margin of safety in dollars. (1 mark) L. Calculate the degree of operating leverage...
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90...
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company's annual fixed costs are $432,000. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement at Break Even) Amount Percentage of sales (2) Assume the company's fixed costs increase by $129,000. What amount of sales in dollars) is needed to break even? Break Even Point in Dollars...
Multiple Choice Question 117 Coronado Industries seis a product for $50 per unit. The wed costs...
Multiple Choice Question 117 Coronado Industries seis a product for $50 per unit. The wed costs are $780000 and the variable costs are 60 of the selling price. As a result of new automated e fed costs will increase by $140000 and variable costs will be 50% of the selling price. The new break-even point i niti m erti cipated that 34600 36:00 39000 31200
Exercise 3-2A Per-unit contribution margin approach LO 3-1 Solomon Corporation sells products for $38 each that have variable costs of $20 per unit. Solomon's annual fixed cost is $430,200. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
$170 per unit. The company incurs variable manufacturing costs of $83 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $498.000, and fixed selling and administrative costs are $236.400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by...
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
Swifty Corporation sells radios for $50 per unit. The fixed costs are $345000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $25000 and variable costs will be 50% of the selling price. The new break-even point in units is: 12350 14800 13800 17250 Vaughn Manufacturing can produce 100 units of a component part with the following Direct Materials Direct Labor Variable Overhead...
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and Determine the break-even point in units and dollars using each of the following approaches: b. Use the c eferencesd. Prepare a Req A to C 29 5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000,...
Question 2 Multimake Limited is considering the launch of a new product. The variable costs (direct labour and materials) are estimated at $7 per unit. New fixed costs relating to the product are estimated at $350,000 per annum, and the sale price will be $12 per unit. Required (a) Define and calculate the 'break-even point' in units for the new product. (5 marks) (b) Further information reveals that sales of up to 50.000 units per annum will be made at...
d. If Anise sells for $7/unit and Basil sells for $4/unit, calculate the contribution margin per unit per product. (1.5 marks) e. Calculate the operating income if sales increase by 10%. (1.5 marks) f. Calculate how many units must be sold to break-even. (2.5 marks) g. If the income tax rate is 30%, calculate how of $12,000. (2.5 marks) h. Using the July results, calculate the margin of safety in dollars. (1 mark) L. Calculate the degree of operating leverage...
Blanchard Company manufactures a single product that sells for $120 per unit and whose total variable costs are $90 per unit. The company's annual fixed costs are $432,000. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. BLANCHARD COMPANY Contribution Margin Income Statement at Break Even) Amount Percentage of sales (2) Assume the company's fixed costs increase by $129,000. What amount of sales in dollars) is needed to break even? Break Even Point in Dollars...
Multiple Choice Question 117 Coronado Industries seis a product for $50 per unit. The wed costs are $780000 and the variable costs are 60 of the selling price. As a result of new automated e fed costs will increase by $140000 and variable costs will be 50% of the selling price. The new break-even point i niti m erti cipated that 34600 36:00 39000 31200
Most questions answered within 3 hours.
-
Angel Corporation has $10,000,000 of
8.0% 25 year bonds dated May 1, 2018 with interest payable...
asked 15 minutes ago -
7.
________ involves individuals trading goods they already have or
providing services in exchange for something...
asked 20 minutes ago -
Share your research problem. What databases did you search as
you gathered evidence to support your...
asked 20 minutes ago -
what process occurs to form microspores and megaspores in flowering
plants?
asked 27 minutes ago -
C++
I need to use the function getData to put in all my data using
arrays....
asked 26 minutes ago -
A block is hung by a string from the inside roof of a van. When
the...
asked 33 minutes ago -
Do you think companies should not go for long term debt in their
capital structure to...
asked 42 minutes ago -
I create an address book where the user enters the name, phone
and email in the...
asked 48 minutes ago -
The production capacity for acrylonitrile
(C3H3N) in the United States exceeds 2
million pounds per year....
asked 55 minutes ago -
explain and comment out your answer
43. How many address lines are required to address a...
asked 1 hour ago -
A sample of 45 observations is selected from a normal
population. The sample mean is 49,...
asked 1 hour ago -
A construction company is planning to bid on a building
contract. The bid costs the company...
asked 1 hour ago