a.
Selling price per unit:
= [(7,400 X $9) + $288,400 + $89,000] / 7,400
= $60
b.
Sales | $444,000 |
Variable cost | $51,800 |
Contribution margin | $392,200 |
Fixed cost | $299,100 |
Net operating income | 93,100 |
Complete this question by entering your answers in the tabs below. Required A Required B Prepare...
Stuart Company currently produces and sells 7,100 units annually of a product that has a variable cost of $11 per unit and annual fixed costs of $323,800. The company currently earns a $88,000 annual profit. Assume that Stuart has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $9 per unit. The investment would cause fixed costs to increase by $10,900 because of additional depreciation cost. Required a. Use the...
Stuart Company currently produces and sells 7,600 units annually of a product that has a variable cost of $11 per unit and annual fixed costs of $269,600. The company currently earns a $80,000 annual profit. Assume that Stuart has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $9 per unit. The investment would cause fixed costs to increase by $9,600 because of additional depreciation cost. Required a. Use the...
Benson Company currently produces and sells 6,600 units annually of a product that has a variable cost of $6 per unit and annual fixed costs of $354,600. The company currently earns a $81,000 annual profit. Assume that Benson has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $4 per unit. The investment would cause fixed costs to increase by $9,400 because of additional depreciation cost. Required a. Use the...
Q.5
Franklin Company currently produces and sells 7,700 units
annually of a product that has a variable cost of $8 per unit and
annual fixed costs of $287,900. The company currently earns a
$74,000 annual profit. Assume that Franklin has the opportunity to
invest in new labor-saving production equipment that will enable
the company to reduce variable costs to $6 per unit. The investment
would cause fixed costs to increase by $9,000 because of additional
depreciation cost.
Required
Use the...
Campbell Company currently produces and sells 8,000 units annually of a product that has a variable cost of $14 per unit and annual fixed costs of $293,000. The company currently earns a $83,000 annual profit. Assume that Campbell has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $12 per unit. The investment would cause fixed costs to increase by $9,900 because of additional depreciation cost. Required a. Use the...
I need to understand how to get the sales price too:)
Fanning Company currently produces and sells 8,000 units annually of a product that has a variable cost of $13 per unit and annual fixed costs of $298,000. The company currently earns a $78,000 annual profit. Assume that Fanning has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $11 per unit. The investment would cause fixed costs to increase...
Perez Company currently produces and sells 6,400 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $311,800. The company currently earns a $85,000 annual profit. Assume that Perez has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $7 per unit. The investment would cause fixed costs to increase by $10,700 because of additional depreciation cost. Required a. Use the...
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Calculate the unit contribution margin and contribution margin ratio for each birdbath sold. (Round Variable cost per unit to 2 decimal places. Round your contribution margin ratio to 2 decimal places. Enter all amounts as positive values.) Unit Contribution Margin per Birdbath = Contribution Margin Ratio % < Required 1 Required 2 > Required information Morning Dove Company manufactures one model of birdbath, which is...
Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a contribution format income statement for the quarter ended March 31. The Alpine House, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses: Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Complete this question by entering...
Complete this question by entering your answers
in the tabs below.
Complete the schedule of the company’s total costs and costs per
unit as given in the relevant tab below. (Round the per unit
variable cost and fixed cost to 2 decimal places.)
Units Produced and Sold
61,000
81,000
101,000
Total costs:
Variable costs
$225,700
299,700
373,700
Fixed costs
380,000
380,000
4
Total costs
$605,700
$679,700
$373,704
Cost per unit:
Variable cost
3.70
3.70
3.70
Fixed cost
6.23
4.69
3.76...