If Samsung is thinking of expanding sales of its most popular smartphone model by 65%, should...
If Samsung is thinking of expanding sales of its most popular smartphone model by 65%, should we expect its variable and fixed costs for this model to stay within the relevant range? Explain. (200 words minimum)
Homework Answers
If there is an increase in volume than variable cost also increases.The variable cost of production is a constant amount per unit produced. As the volume of production and output increases, total variable cost will also increase with the increase in sales .
Total Fixed cost is a constant amount .Unit fixed costs are inversely proportional to sales volumes. This means that unit fixed costs fall when volumes rise because the costs are spread over more units .
If samsung want to expand it's sales by 65% variable cost in total will also increase by same proportion and unit variable cost remain constant whereas total fixed cost remain constant and unit fixed cost will fall with rise in volume.
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If Samsung is thinking of expanding sales of its most popular
smartphone model by 65%, should...
If Samsung is thinking of expanding sales of its most popular smartphone model by 65%, should...
If Samsung is thinking of expanding sales of its most popular smartphone model by 65%, should we expect its variable and fixed costs for this model to stay within the relevant range? Explain.
Discussion questions 1,2,4,6,7,14,17 only 1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1...
Discussion questions 1,2,4,6,7,14,17 only
1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1 3. : 575.000/S50 CM per unit 4. 5. : $300,000 - 5 Contribution margin ratio (5400 - $260)/540002 Targeted sales (68.10,000+ $70,0001/0.35 = 52.600 1.500 units Superscript letter AB, or donates assignments based on Appendix 21A, 218 or 27 con denotes assignments that involve decision making The U Discussion Questions 1. What is a variable cost? Identify two variable costs. 2. T When output...
Samsung Corp.
Samsung Corp. is offering a new economy model of its smartphone for $250 at retail price. Within their marketing channel, wholesalers run the bulk logistics downstream while retailers conduct the point of sales & merchandising functions. Retailers typically command a margin of 30%. Wholesalers charge 20% margin. Samsung has a reasonably budgeted fixed cost of $20 million for this product line, while its variable cost per unit is slated at $125. It forecasts selling 1 million units in the first...
Mid-Atlantic Yachts manufactures boats for seafarers. Its most popular model can accommodate twelve people and sells for...
Mid-Atlantic Yachts manufactures boats for seafarers. Its most
popular model can accommodate twelve people and sells for $865,000.
Manufacturing and other costs, all per unit, are as follows:
Mid-Atlantic has a constraint on how many yachts can be built in a
year, because yacht building is a highly skilled endeavor and
qualified machinists are difficult to find and retain. If the labor
rate is $90 per hour, what is the contribution margin on the yacht
per labor hour?
A :...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range...
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $172,100 to
$205,400. Variable costs and their percentage relationship to sales
are sales commissions 6%, advertising 6%, traveling 3%, and
delivery 2%. Fixed selling expenses will consist of sales salaries
$35,400, depreciation on delivery equipment $6,500, and insurance
on delivery equipment $1,200.
Prepare a monthly flexible budget for each $11,100 increment of
sales within the relevant range for the year ending December 31,...
Klinken Corporation's contribution margin ratio on the sale of its most popular product is 40%. The...
Klinken Corporation's contribution margin ratio on the sale of its most popular product is 40%. The product is priced at $89. annual fixed expenses are $845,000. Management is evaluating two options (1) lewening variable costs by 10% and (2) reducing fixed expenses by 10%. Required: Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Break-even sales...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range...
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $174,100 to
$209,200. Variable costs and their percentage relationship to sales
are sales commissions 6%, advertising 4%, traveling 4%, and
delivery 1%. Fixed selling expenses will consist of sales salaries
$35,100, depreciation on delivery equipment $7,500, and insurance
on delivery equipment $1,800.
Prepare a monthly flexible budget for each $11,700 increment of
sales within the relevant range for the year ending December 31,...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $172,800 to $215,400. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 4%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $35,500, depreciation on delivery equipment $7.500, and insurance on delivery equipment $1,100. Prepare a monthly selling expense flexible budget for each $14,200 increment of sales within the relevant range for the year ending...
Possible Account Titles: Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are...
Possible Account Titles:
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. Prepare a monthly selling expense flexible budget for each $10,000 increment of sales within the relevant range for...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $167,300 to $209,300. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 6%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $34,900, depreciation on delivery equipment $7,100, and insurance on delivery equipment $1,900. Prepare a monthly selling expense flexible budget for each $14,000 increment of sales within the relevant range for the year ending...
Discussion questions 1,2,4,6,7,14,17 only
1. a: SISO - S100550 2. e: (5150 - $100/S150 = 1 3. : 575.000/S50 CM per unit 4. 5. : $300,000 - 5 Contribution margin ratio (5400 - $260)/540002 Targeted sales (68.10,000+ $70,0001/0.35 = 52.600 1.500 units Superscript letter AB, or donates assignments based on Appendix 21A, 218 or 27 con denotes assignments that involve decision making The U Discussion Questions 1. What is a variable cost? Identify two variable costs. 2. T When output...
Mid-Atlantic Yachts manufactures boats for seafarers. Its most
popular model can accommodate twelve people and sells for $865,000.
Manufacturing and other costs, all per unit, are as follows:
Mid-Atlantic has a constraint on how many yachts can be built in a
year, because yacht building is a highly skilled endeavor and
qualified machinists are difficult to find and retain. If the labor
rate is $90 per hour, what is the contribution margin on the yacht
per labor hour?
A :...
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $172,100 to
$205,400. Variable costs and their percentage relationship to sales
are sales commissions 6%, advertising 6%, traveling 3%, and
delivery 2%. Fixed selling expenses will consist of sales salaries
$35,400, depreciation on delivery equipment $6,500, and insurance
on delivery equipment $1,200.
Prepare a monthly flexible budget for each $11,100 increment of
sales within the relevant range for the year ending December 31,...
Klinken Corporation's contribution margin ratio on the sale of its most popular product is 40%. The product is priced at $89. annual fixed expenses are $845,000. Management is evaluating two options (1) lewening variable costs by 10% and (2) reducing fixed expenses by 10%. Required: Calculate the current level of break-even sales in dollars, as well as the break-even sales for the two options. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Break-even sales...
Fallon Company uses flexible budgets to control its selling
expenses. Monthly sales are expected to range from $174,100 to
$209,200. Variable costs and their percentage relationship to sales
are sales commissions 6%, advertising 4%, traveling 4%, and
delivery 1%. Fixed selling expenses will consist of sales salaries
$35,100, depreciation on delivery equipment $7,500, and insurance
on delivery equipment $1,800.
Prepare a monthly flexible budget for each $11,700 increment of
sales within the relevant range for the year ending December 31,...
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $172,800 to $215,400. Variable costs and their percentage relationship to sales are sales commissions 7%, advertising 4%, travel 4%, and delivery 1%. Fixed selling expenses will consist of sales salaries $35,500, depreciation on delivery equipment $7.500, and insurance on delivery equipment $1,100. Prepare a monthly selling expense flexible budget for each $14,200 increment of sales within the relevant range for the year ending...
Possible Account Titles:
Fallon Company uses flexible budgets to control its selling expenses. Monthly sales are expected to range from $170,000 to $200,000. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 4%, travel 3%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,000, depreciation on delivery equipment $7,000, and insurance on delivery equipment $1,000. Prepare a monthly selling expense flexible budget for each $10,000 increment of sales within the relevant range for...
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