Homework Answers
Vine Pty Ltd:
1. Break even point in units = Fixed cost /(selling price -variable cost per unit)
= 10,53,000/(37.5-29.7) = 135,000 units
2. Break even point in dollars = Break even point × Selling price
= 135,000 units × 37.5 = $ 50,62,500
3. Selling units = (Fixed cost + Desired profit) / contribution margin
= (10,53,000+570,000) / (37.5-29.7) = 208,077 units (approximately)
4. Margin of safety = (current sales - break even sales) / current sales
= (52,50,000-50,62,500) /52,50,000 = 3.57%
5. Break even point = Fixed cost /(selling price - Variable cost per unit)
= 10,53,000/(37.5-12.3-6-(9×110%)-2.4)
= 10,53,000/(37.5-30.6) = 152,609 units (approximately)
6. Contribution margin ratio = (selling price - Variable cost) / Selling price
= (37.5-29.7) /37.5 = 20.8%
What is the selling price per unit if direct labor increases by 10%, with same contribution margin ratio.
Congratulation margin ratio = (selling price(SP) - variable cost per unit) / Selling price(SP)
20.8% = SP - (12.3+6+9.9+2.4) / SP
20.8% = SP - (30.6) / SP
30.6 = SP (79.2%)
Selling price (SP) = $ 38.64 per unit (approximately)
Increase in selling price = $ 38.64 - $ 37.5 = $ 1.14
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e in the following table. Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles...
Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles of wine. Price and cost...
Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles of wine. Price and cost data are in the following table. $ 37.50 P18.33 LO18.1 18.3 S 12.30 Selling price per bottle 18.4 6.00 Variable costs per bottle: 18.5 Direct material 9.00 Direct labour 2.40 S 29.70 Manufacturing overhead Selling costs S 432000 Total variable costs per bottle Annual fixed costs Manufacturing overhead 621 000 $1053000 $5250000 Selling and administrative Total fixed costs Forecast annual sales (140000 units Refer...
answer second attachment questions from first attachment statement.. answer question 18.34 only e in the following...
answer second attachment questions from first
attachment statement..
answer question 18.34 only
e in the following table. Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles of wine. Price and cost data are in the following P18.33 LO18.1 18.3 18.4 18.5 Selling price per bottle Variable costs per bottle: Direct material Direct labour Manufacturing overhead Selling costs Total variable costs per bottle Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecast annual sales (140000 units)...
answer 18.34 only answer 18.34 only answer second attachment questions from first attachment statement.. P18.33 10...
answer 18.34 only
answer 18.34 only
answer second attachment questions from first attachment statement.. P18.33 10 18.1 Basic CVP relationships manufacturer Vihre Pylld produces and sells bottles of wine Price and cost detare in the following the Selling Price per Variab l e per le Det er ohad M Tower On the following requirements, incre incontes Required What is Vine's break even point in units? 2. What is the compet's break even in sales dollars? How many units would he...
Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses—variable $93,000 Direct materials 410,000 Selling expenses—fixed 65,000 Direct labor 400,000 Administrative expenses—variable 27,000 Manufacturing overhead—variable 420,000 Administrative expenses—fixed 55,000 Manufacturing overhead—fixed 150,000 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,...
Johnson Company bottles ans distributes soft drinks. The beverage is sold for 60 cents per 16 ounce bottle to retailers...
Johnson Company bottles ans distributes soft drinks. The beverage is sold for 60 cents per 16 ounce bottle to retailers who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales 1,800,000 Direct materials 510,000 Direct labor 390,000 Manufacturing overhead-variable 410,000 Manufacturing overhead-fixed 130,000 Selling expenses-variable 105,000 Selling expense-fixed 62,000 Administrative expense-variable 25,000 Administrative expense-fixed 96,000 Prepare a CVP income statement for 2020 based on management's estimates. Then calculate variable cost per...
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60...
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs Sales Direct materials $1.800.000 510,000 390.000 410.000 Selling expenses variable Selling expenses-fod Administrative Direct labor Manufacturing overhead variable Manufacturing overhead-foed CULLUMBER COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Calculate variable cost per bottle. (Round variable...
Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,950,000 Selling expenses-variable 470.000 Selling expenses-fixed 340,000 Administrative expenses-variable 360,000 Administrative expenses-fixed 230,000 $171,000 59.000 24,000 120,500 IVANHOE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 $...
Jorge Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50...
Jorge Company bottles and distributes B-Lite, a diet soft
drink. The beverage is sold for 50 cents per 16-ounce bottle to
retailers, who charge customers 78 cents per bottle. For the year
2014, management estimates the following revenues and costs.
Sales
$1,804,000
Selling expenses—variable
$69,800
Direct materials
428,000
Selling expenses—fixed
65,800
Direct labor
354,000
Administrative expenses—variable
64,920
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
64,900
Manufacturing overhead—fixed
288,000
Prepare a CVP income statement for 2014 based on management’s
estimates.
$
Calculate variable...
A.) B/C.) D/E.) Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is...
A.)
B/C.)
D/E.)
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 480,000 330,000 350,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $212,000 50,000 28,000 90,000 Prepare a CVP income statement for 2020 based on management's estimates....
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as...
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as follows: Direct materials $3.80 Direct labour 1.40 Variable factory overhead 2.30 Variable selling and administrative expense 1.40 Total fixed factory overhead is $74,840 per year, and total fixed selling and administrative expense is $54,195. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to the nearest cent and use rounded amounts in subsequent requirements. Variable cost...
Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles of wine. Price and cost data are in the following table. $ 37.50 P18.33 LO18.1 18.3 S 12.30 Selling price per bottle 18.4 6.00 Variable costs per bottle: 18.5 Direct material 9.00 Direct labour 2.40 S 29.70 Manufacturing overhead Selling costs S 432000 Total variable costs per bottle Annual fixed costs Manufacturing overhead 621 000 $1053000 $5250000 Selling and administrative Total fixed costs Forecast annual sales (140000 units Refer...
answer second attachment questions from first
attachment statement..
answer question 18.34 only
e in the following table. Basic CVP relationships: manufacturer Vine Pty Ltd produces and sells bottles of wine. Price and cost data are in the following P18.33 LO18.1 18.3 18.4 18.5 Selling price per bottle Variable costs per bottle: Direct material Direct labour Manufacturing overhead Selling costs Total variable costs per bottle Annual fixed costs: Manufacturing overhead Selling and administrative Total fixed costs Forecast annual sales (140000 units)...
answer 18.34 only
answer 18.34 only
answer second attachment questions from first attachment statement.. P18.33 10 18.1 Basic CVP relationships manufacturer Vihre Pylld produces and sells bottles of wine Price and cost detare in the following the Selling Price per Variab l e per le Det er ohad M Tower On the following requirements, incre incontes Required What is Vine's break even point in units? 2. What is the compet's break even in sales dollars? How many units would he...
Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs Sales Direct materials $1.800.000 510,000 390.000 410.000 Selling expenses variable Selling expenses-fod Administrative Direct labor Manufacturing overhead variable Manufacturing overhead-foed CULLUMBER COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Calculate variable cost per bottle. (Round variable...
Ivanhoe Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,950,000 Selling expenses-variable 470.000 Selling expenses-fixed 340,000 Administrative expenses-variable 360,000 Administrative expenses-fixed 230,000 $171,000 59.000 24,000 120,500 IVANHOE COMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 $...
Jorge Company bottles and distributes B-Lite, a diet soft
drink. The beverage is sold for 50 cents per 16-ounce bottle to
retailers, who charge customers 78 cents per bottle. For the year
2014, management estimates the following revenues and costs.
Sales
$1,804,000
Selling expenses—variable
$69,800
Direct materials
428,000
Selling expenses—fixed
65,800
Direct labor
354,000
Administrative expenses—variable
64,920
Manufacturing overhead—variable
310,000
Administrative expenses—fixed
64,900
Manufacturing overhead—fixed
288,000
Prepare a CVP income statement for 2014 based on management’s
estimates.
$
Calculate variable...
A.)
B/C.)
D/E.)
Sheridan Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 480,000 330,000 350,000 280,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $212,000 50,000 28,000 90,000 Prepare a CVP income statement for 2020 based on management's estimates....
Basic Break-Even Calculations Suppose that Adams Company sells a product for $22.00. Unit costs are as follows: Direct materials $3.80 Direct labour 1.40 Variable factory overhead 2.30 Variable selling and administrative expense 1.40 Total fixed factory overhead is $74,840 per year, and total fixed selling and administrative expense is $54,195. Required: 1. Calculate the variable cost per unit and the contribution margin per unit. Round your answers to the nearest cent and use rounded amounts in subsequent requirements. Variable cost...
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