EasyFind, Inc. sells StraightShot golf balls for $24 per dozen, with a variable manufacturing cost of...
QUESTION Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $120 per unit. Variable expenses are $60.00 per unit, and fixed expenses total $160,000 per year. Its operating results for last year were as follows: Sales $ 2,880,000 Variable expenses 1,440,000 Contribution margin 1,440,000 Fixed expenses 160,000 Net operating income $ 1,280,000 1.) The sales manager is convinced that a 11% reduction in the selling price, combined with a $65,000 increase in advertising, would increase this year's unit...
Ambrosia Foods produces a gourmet condiment that sells for $24 per unit. Variable cost is $6 per unit, and fixed costs are $8,000 per month. If Ambrosia expects to sell 1,500 units, compute the margin of safety in units. (Round any intermediate calculations and your final answer to the nearest whole unit.) are $8,000 per month. If Ambrosia eral answer to the nearest whole unit.)
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,200 golf discs is 9,090 29,290 Materials Labor Variable overhead 19,392 Fixed overhead 39,794 Total $97,566 Gruden also incurs 8% sales commission (sO.54) on each disc sold. McGee Corporation offers Gruden $4.77 per disc for 4,740 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed...
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 20,100 golf discs is: Materials Labor Variable overhead Fixed overhead Total $ 10,653 29,346 20,100 41,205 $101,304 Gruden also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 5,000 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its...
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 23,600 golf discs is: 12,744 36,344 24,308 48,144 $121,540 Materials Labor Variable overhead Fixed overhead Total Gruden also incurs 7% sales commission ($0.49) on each disc sold. McGee Corporation offers Gruden $4.90 per disc for 5,100 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed...
Problem 9-24 Project Analysis [LO 2] McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $731 per set and have a variable cost of $361 per set. The company has spent $151,000 for a marketing study that determined the company will sell 75,100 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,600 sets per year of its high-priced clubs. The high-priced clubs...
Concord Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 18,300 golf discs is: Materials $ 9,333 Labor 26,718 Variable overhead 19,032 Fixed overhead 37,149 Total $92,232 Concord also incurs 4% sales commission ($0.28) on each disc sold. McGee Corporation offers Concord $4.77 per disc for 5,630 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Concord. If Concord accepts the offer, its fixed...
Gruden Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs is: Materials $ 10,945 Labor 29,651 Variable overhead 21,094 Fixed overhead 39,004 Total $100,694 Gruden also incurs 5% sales commission ($0.35) on each disc sold. McGee Corporation offers Gruden $4.77 per disc for 5,350 discs. McGee would sell the discs under its own brand name in foreign markets not yet served by Gruden. If Gruden accepts the offer, its fixed...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 36,000 of these balls, with the following results: Sales (36,000 balls)$900,000Variable expenses540,000Contribution margin360,000Fixed expenses263,000Net operating income$97,000 Required:1. Compute (a) last year's CM ratio and the break-even point in balls, and (b) the...