Rally Synthesis Inc. manufactures and sells 70 bottles per day. Fixed costs are $25,000 and the...
Rally Synthesis Inc. manufactures and sells 70 bottles per day. Fixed costs are $25,000 and the variable costs for manufacturing 70 bottles are $49,000. Each bottle is sold for $2,000. How would the daily profit be affected if the daily volume of sales drop by 20%?
A. profits are reduced by $18,200
B.profits are reduced by $47,800
C.profits are reduced by $28,000
D. profits are reduced by
Homework Answers
Answer is “profits are reduced by $18,200”
Selling price per bottle = $2,000
Variable cost per bottle = Variable costs / Number of bottles
produced
Variable cost per bottle = $49,000 / 70
Variable cost per bottle = $700
Contribution margin per bottle = Selling price per bottle -
Variable cost per bottle
Contribution margin per bottle = $2,000 - $700
Contribution margin per bottle = $1,300
Decrease in sales volume = 70 * 20%
Decrease in sales volume = 14 bottles
Decrease in daily profit = Decrease in sales volume *
Contribution margin per bottle
Decrease in daily profit = 14 * $1,300
Decrease in daily profit = $18,200
Add Answer to:
Rally Synthesis Inc. manufactures and sells 70 bottles per day.
Fixed costs are $25,000 and the...
Rally Synthesis Inc. manufactures and sells 80 bottles per day. Fixed costs are $23,000 and the...
Rally Synthesis Inc. manufactures and sells 80 bottles per day. Fixed costs are $23,000 and the variable costs for manufacturing 80 bottles are $40,000. Each bottle is sold for $1,500. How would the daily profit be affected if the daily volume of sales drop by 20%? A. profits are reduced $24,000 B. profits are reduced by $ $8,000 C.profits are reduced by $ $41,000 D.profits are reduced by $ 16,000
Maize Plastics manufactures and sells 90 bottles per day. Fixed costs are $25,000 and the variable...
Maize Plastics manufactures and sells 90 bottles per day. Fixed costs are $25,000 and the variable costs for manufacturing 90 bottles are $18,000. Each bottle is sold for $1000. How would the daily profit be affected if the daily volume of sales drop by 2047 profits are reduced by $32,600 profits are reduced by $18,000 profits are reduced by $14,400 profits are reduced by $3600
C a n that says resources should be spent the expected benefits to the company exceed...
C a n that says resources should be spent the expected benefits to the company exceed the expected A) cost-benefit approach C) different costs for different purposes Explanation B) balanced Scorecard D) behavioral and technical considerations 6) Cast assignment A) includes future and arbitrary costs B) is the same as cost accumulation C) is the difference between budgeted and actual costs D) associates accumulated costs with certain cost objects Explanation A) 7) Which of the following statements about the direct...
Question 9 (5 points) 09. Polio manufactures and sells 50 control devices per day. Total fixed...
Question 9 (5 points) 09. Polio manufactures and sells 50 control devices per day. Total fixed costs are $20,000 per day and the total variable costs are $10,000 at this level of production. Each control device is sold for $800, Due to competition, demand for company's control devices has started to decline. Compute the amount of profit per unitif the daily volume of production and sales drops by 20% within relevant range? Example of answer: 4500
TX Honey Inc. sells 3,000 bottles of honey bee for $70 each that incur variable costs...
TX Honey Inc. sells 3,000 bottles of honey bee for $70 each that incur variable costs of $45 each. The company spent $40,000 for manufacturing facilities. What is contribution margin for manufacturing the products? a. 62,000 b. 66,000 c. 70,000 d. 75,000
No Streak, Inc. manufactures windshield wipers for its single client, Go Fast Motors. No Streak sells...
No Streak, Inc. manufactures windshield wipers for its single client, Go Fast Motors. No Streak sells each wiper to Go Fast for $25. Direct material costs per unit equal $4 and direct labor cost per unit equals $1. Also, No Streak incurs $5 of variable overhead costs for every unit that it manufactures and sells. Finally, the fixed costs associated with No Streak’s manufacturing plant equal $20,000 and the fixed costs related to No Streak’s marketing and distribution equal $30,000....
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore,...
Osage, Inc., manufactures and sells lamps. The company produces
only when it receives orders and, therefore, has no inventories.
The following information is available for the current month:
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 450,000 units) $4.970,000 Master Budget (based o n budgeted orders for 480,000 units) $4,800,000 Sales revenue Less Variable...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it curren...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...
3. Production costs for manufacturing running shoes consist of a fixed overhead of $650,000 plus variable costs of $20 per pair of shoes. Each pair of shoes sells for $70. (a) Find the total cost...
3. Production costs for manufacturing running shoes consist of a fixed overhead of $650,000 plus variable costs of $20 per pair of shoes. Each pair of shoes sells for $70. (a) Find the total cost, C (g), the total revenue, R g), and the total profit, π(g), as a function of the (b) How many pairs of shoes must be produced and sold for the company to make a profit? number of pairs of shoes produced, q.
3. Production costs...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
Maize Plastics manufactures and sells 90 bottles per day. Fixed costs are $25,000 and the variable costs for manufacturing 90 bottles are $18,000. Each bottle is sold for $1000. How would the daily profit be affected if the daily volume of sales drop by 2047 profits are reduced by $32,600 profits are reduced by $18,000 profits are reduced by $14,400 profits are reduced by $3600
C a n that says resources should be spent the expected benefits to the company exceed the expected A) cost-benefit approach C) different costs for different purposes Explanation B) balanced Scorecard D) behavioral and technical considerations 6) Cast assignment A) includes future and arbitrary costs B) is the same as cost accumulation C) is the difference between budgeted and actual costs D) associates accumulated costs with certain cost objects Explanation A) 7) Which of the following statements about the direct...
Question 9 (5 points) 09. Polio manufactures and sells 50 control devices per day. Total fixed costs are $20,000 per day and the total variable costs are $10,000 at this level of production. Each control device is sold for $800, Due to competition, demand for company's control devices has started to decline. Compute the amount of profit per unitif the daily volume of production and sales drops by 20% within relevant range? Example of answer: 4500
Osage, Inc., manufactures and sells lamps. The company produces
only when it receives orders and, therefore, has no inventories.
The following information is available for the current month:
Osage, Inc., manufactures and sells lamps. The company produces only when it receives orders and, therefore, has no inventories. The following information is available for the current month: Actual (based on actual orders for 450,000 units) $4.970,000 Master Budget (based o n budgeted orders for 480,000 units) $4,800,000 Sales revenue Less Variable...
Vidget Inc., manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year. The following information relates to current production: $44 Sale price per unit Variable costs per unit: Manufacturing Marketing and administrative $24 $5 otal fixed costs: Manufacturing Marketing and administrative $75,000 $25,000 Fa special sales order is accepted for 8,200 widgets at a price of $36 per unit, and fixed costs increase by $12,000, how would...
3. Production costs for manufacturing running shoes consist of a fixed overhead of $650,000 plus variable costs of $20 per pair of shoes. Each pair of shoes sells for $70. (a) Find the total cost, C (g), the total revenue, R g), and the total profit, π(g), as a function of the (b) How many pairs of shoes must be produced and sold for the company to make a profit? number of pairs of shoes produced, q.
3. Production costs...
Widget Inc. manufactures widgets. The company has the capacity to produce 100,000 widgets per year, but it currently produces and sells 75,000 widgets per year The following information relates to current production: Sales price per unit $40 Variable costs per unit Manufacturing Marketing and administrative $22 $5 Total fixed costs: $78,000 $25,000 Manufacturing Marketing and administrative If a snecial eales order is accented for 6.900 widoets at a.price.of $42.ner.unit and fixed.costs.remain unchanned how would oneratinn income.he affected2.(NOTE Decrease by $103,500...
Most questions answered within 3 hours.
-
Kylie is a single mom with two dependent children,
Tanner, age 7 and Olivia, age 11....
asked 1 hour ago -
Phosphorous + bromine = phosphorous tribromide. If 35.0 g of
bromine are reacted and 27.9 grams...
asked 2 hours ago -
Derive the long wavelength limit of the Planck energy density
distribution
asked 2 hours ago -
Calculate the pH of each of the following solutions.
0.50 M HBr
3.1×10−4 M KOH
4.2×10−5...
asked 6 hours ago -
For the year ended December 31, Depot Max’s cost of merchandise
sold was $85,600. Inventory at the...
asked 6 hours ago -
Week 10 - Professional Memo Assignment
Professional Memo Assignment
Your mission for this week, should you...
asked 6 hours ago -
Write a Python program that stores the data for each
player on the team, and it...
asked 6 hours ago -
In
the last 3 months, mike never knows when he is going to get his
allowance...
asked 6 hours ago -
Is Ca(OH)2 a Bronsted base, Lewis base, or both? Why?
asked 6 hours ago -
1A- Why don’t voters complain about U.S. tariffs on imported
sugar?
Because sugar is only a...
asked 6 hours ago -
Cash Payback Period
Primera Banco is evaluating two capital investment proposals for
a drive-up ATM kiosk,...
asked 6 hours ago -
Create a button in Swift (Xcode) that will create a charge,
create a charge using Stripe's...
asked 6 hours ago