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
for part b, its 15 dollars for sales, why didnt you deduct the 7 dollars for new contribution margin per unit
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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
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...
6. The selling price of Product XYZ is $15.00. Variable unit costs are $7 and fixed...
6. The selling price of Product XYZ is $15.00. Variable unit costs are $7 and fixed costs are $25,000. Find: a. Contribution margin per unit b. Contribution margin ratio c. Break-even in units and dollars d. Margin of safety and margin of safety ratio if 4500 units are expected to be sold.
Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $ 8.00 Direct...
Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $ 8.00 Direct labor 3.00 Factory overhead $ 200,000 1.50 Selling expenses: Advertising 1,450,000 Sales salaries and commissions 93,000 1.85 Travel 340,000 Miscellaneous selling expense 2,000 Administrative expenses: Office and officers' salaries 300,000 10,000 Supplies 0.50 Miscellaneous administrative expense 5,000 0.05 Total $2,400,000 $15.00 It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within the relevant range are...
23. Information for a company is shown below. Variable costs per unit: $10.00 direct materials $9.00...
23. Information for a company is shown below. Variable costs per unit: $10.00 direct materials $9.00 for direct labor $6.00 for variable overhead. Total fixed costs: $100,000 in manufacturing overhead and $80,000 in nonmanufacturing costs Assume the company sold75,000 units for $35,00 cach. a. What is the Unit contribution margin? b. Contribution margin ratio? c. Break-even point in units? Dollars? d. If I told you the unit contribution was $12, what is the amount of contribution margin in dollars if...
Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit, and...
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
Exercise 21-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your...
Product G $ 50 Product B $ 80 10 Selling price per unit Variable costs per...
Product G $ 50 Product B $ 80 10 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month S 40 $ 32 0.4 hours 600 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours...
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and...
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 35 per unit 225,000 190 per unit 20 per unit 30 per unit $ 185,000 $ 5,000 $ 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a...
UNTER COMPONENTS Star 150 150 Costs per unit Direct materials Direct labor Variable overhead Fixed overhead...
UNTER COMPONENTS Star 150 150 Costs per unit Direct materials Direct labor Variable overhead Fixed overhead Total cost per unit Price Units sold Star 100 130 $ 60 30 180 400 $ 580 $ 4,000 40 240 510 780 2,000 40 Additional Information: Variable overhead varies with quantity of direct labor-hours. Average wage rate per hour Plant capacity (in direct labor-hours) 20,000 Current production (in direct labor-hours) 10,000 Requirement a. Information: Star 100 2,500 400 $ Star 150 2,500 500...
Z Inc. manufactures a product with a selling price of $60 per unit. Direct Materials costs...
Z Inc. manufactures a product with a selling price of $60 per unit. Direct Materials costs $12 per unit. Direct Labor costs $11 per unit. Variable Manufacturing Overhead costs $6 per unit. Fixed Manufacturing Overhead costs $34,000 per month. Variable Selling and Administrative Costs $5 per unit. Fixed Selling and Administrative costs $17,000. a) Complete the month’s Contribution Margin Income Statement Budget for Z Inc., assuming that they plan to sell 10,000 units of product. TOTAL SALES VARIABLE COST CONTRIBUTION...
$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...
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...
6. The selling price of Product XYZ is $15.00. Variable unit costs are $7 and fixed costs are $25,000. Find: a. Contribution margin per unit b. Contribution margin ratio c. Break-even in units and dollars d. Margin of safety and margin of safety ratio if 4500 units are expected to be sold.
Estimated Fixed Cost Estimated Variable Cost (per unit sold) Production costs: Direct materials $ 8.00 Direct labor 3.00 Factory overhead $ 200,000 1.50 Selling expenses: Advertising 1,450,000 Sales salaries and commissions 93,000 1.85 Travel 340,000 Miscellaneous selling expense 2,000 Administrative expenses: Office and officers' salaries 300,000 10,000 Supplies 0.50 Miscellaneous administrative expense 5,000 0.05 Total $2,400,000 $15.00 It is expected that 400,000 units will be sold at a price of $25 a unit. Maximum sales within the relevant range are...
23. Information for a company is shown below. Variable costs per unit: $10.00 direct materials $9.00 for direct labor $6.00 for variable overhead. Total fixed costs: $100,000 in manufacturing overhead and $80,000 in nonmanufacturing costs Assume the company sold75,000 units for $35,00 cach. a. What is the Unit contribution margin? b. Contribution margin ratio? c. Break-even point in units? Dollars? d. If I told you the unit contribution was $12, what is the amount of contribution margin in dollars if...
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
Exercise 21-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your...
Product G $ 50 Product B $ 80 10 Selling price per unit Variable costs per unit Contribution margin per unit Machine hours to produce 1 unit Maximum unit sales per month S 40 $ 32 0.4 hours 600 units 1.0 hours 200 units The company presently operates the machine for a single eight-hour shift for 22 working days each month. Management is thinking about operating the machine for two shifts, which will increase its productivity by another eight hours...
Direct materials Fixed manufacturing overhead costs Sales price Variable manufacturing overhead Direct labor Fixed marketing and administrative costs Units produced and sold Variable marketing and administrative costs 35 per unit 225,000 190 per unit 20 per unit 30 per unit $ 185,000 $ 5,000 $ 8 per unit Required: a. Prepare a gross margin income statement. b. Prepare a contribution margin income statement. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a...
UNTER COMPONENTS Star 150 150 Costs per unit Direct materials Direct labor Variable overhead Fixed overhead Total cost per unit Price Units sold Star 100 130 $ 60 30 180 400 $ 580 $ 4,000 40 240 510 780 2,000 40 Additional Information: Variable overhead varies with quantity of direct labor-hours. Average wage rate per hour Plant capacity (in direct labor-hours) 20,000 Current production (in direct labor-hours) 10,000 Requirement a. Information: Star 100 2,500 400 $ Star 150 2,500 500...
$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...
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