Pacific Parts produces a single part for sale. The part sells for $27 per unit. Fixed...
Pacific Parts produces a single part for sale. The part sells for $27 per unit. Fixed costs are $790,000 annually. Production and sales of 290,000 units annually results in profit before taxes of $1,530,000.
Required:
What is the unit variable cost?
|
Homework Answers
Using the profit equation:
Profit = (P – V) × X – FC
$1,530,000 = ($27 – V) × 290,000 – $790,000
V = $5,510,000 ÷ 290,000
V = $19 per unit
Add Answer to:
Pacific Parts produces a single part for sale. The part sells
for $27 per unit. Fixed...
Pacific Parts produces a single part for sale. The part sells for $37 per unit. Fixed...
Pacific Parts produces a single part for sale. The part sells for $37 per unit. Fixed costs are $890,000 annually. Production and sales of 230,000 units annually results in profit before taxes of $2,100,000. Required: What is the unit variable cost? Variable cost per unit
Topic: Transfer of pricing Uninder Corporation produces automobile parts and it primarily sells parts to external...
Topic: Transfer of pricing Uninder Corporation produces automobile parts and it primarily sells parts to external customers. One of its subsidiary companies uses a part which can be produced by Uninder Corporation and it requires 10,000 units annually. Uninder Corporation has no idle capacity. The subsidiary company has a bid from an external supplier for the parts at £31.00 per unit. The variable production costs for these parts would amounts to £12.00 per unit. Packaging and shipping costs for the...
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25,...
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn an after-tax (post-tax) profit of $150,000 for the year. The expected income tax rate is 20%. Required: Determine the sales volume in units required to earn the desired after-tax profit. Multiple Choice 30,180 Units 28,922 Units 34,000 Units NR NA The marketing manager of Benson Corporation has determined that a market exists for a...
A company produces a single product. Variable production costs are $12 per unit and variable selling...
A company produces a single product. Variable production costs are $12 per unit and variable selling and administrative costs are $3 per unit. Fixed production costs are $36,000 and fixed selling and administrative costs total $40,000. The beginning inventory was zero, production of 4,000 units, and sales of 3,600 units. How many units remain in the ending inventory and what is the unit and total cost, assuming variable costing.
Bando Corp. sells a single part for a price of $88 per unit. The variable costs...
Bando Corp. sells a single part for a price of $88 per unit. The variable costs of the part are $47 per unit and monthly fixed costs are $274,700. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable...
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable operating costs are $30 per unit, and its fixed operating costs are $2.1 million. Calculate Moreau's profit for 80,000 units. Calculate the break-even volume.
Bando Corp. sells a single part for a price of $46 per unit. The variable costs...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
Fowler Company produces a product that sells for $200 per unit and has a variable cost...
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...
27. Wang Co. manufactures and sells a single product that sells for $450 per unit; variable...
27. Wang Co. manufactures and sells a single product that sells for $450 per unit; variable costs are $270 per unit. Annual fixed costs are $800,000. Current sales volume is $4,200,000. Management targets an annual pre-tax income of $1,125,000. Compute the unit sales to earn the target pre-tax net income. 27) ______ A) 6,650. B) 7,500. C) 10,694. D) 4,444. E) 11,750. 42. An advantage of common-size statements is that they show patterns in data across periods. True or False
Pacific Parts produces a single part for sale. The part sells for $37 per unit. Fixed costs are $890,000 annually. Production and sales of 230,000 units annually results in profit before taxes of $2,100,000. Required: What is the unit variable cost? Variable cost per unit
Dannica Corporation produces products that it sells for $40 each. Variable costs per unit are $25, and annual fixed costs are $360,000. Dannica desires to earn an after-tax (post-tax) profit of $150,000 for the year. The expected income tax rate is 20%. Required: Determine the sales volume in units required to earn the desired after-tax profit. Multiple Choice 30,180 Units 28,922 Units 34,000 Units NR NA The marketing manager of Benson Corporation has determined that a market exists for a...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
#11. (10%) Moreau Industries produces a single product, which sells for $60 per unit. Its variable operating costs are $30 per unit, and its fixed operating costs are $2.1 million. Calculate Moreau's profit for 80,000 units. Calculate the break-even volume.
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...
Most questions answered within 3 hours.
-
1) Who is a Hispanic consumer?
2) Who is a Latin consumer?
3) Are Hispanic and...
asked 2 minutes ago -
Rod figures that it takes an average (mean) of =20 minutes with
a standard deviation of...
asked 20 minutes ago -
You have 5 ul of a pure (undiluted) culture at a concentration
of 3.6 x 106...
asked 25 minutes ago -
______ activity indicates the presence of an electron transport
chain.
1- gelatinase 2- oxidase 3- caseinase...
asked 27 minutes ago -
The molarity of a silver nitrate solution is 0.192 M. How many
grams of silver ions...
asked 40 minutes ago -
Which of the following solutes will produce a greater increase
in boiling point when it is...
asked 36 minutes ago -
true or false: Series connected electrical circuit is a voltage
divider, and voltage of each device...
asked 31 minutes ago -
A 100-W lightbulb has a resistance of about 12 Ω when cold (20
∘C) and 128...
asked 35 minutes ago -
For the asset shown in the following table, use the capital
asset pricing model to find...
asked 36 minutes ago -
If the impulse response of a circuit is a pulse y(t) = u(t) –
u(t-T), T...
asked 43 minutes ago -
Eukaryotic cells have __ which is similar to prokaryotes of
Archaea.
A Ester-linked membrane lipids
B...
asked 52 minutes ago -
true or false. If work is done on a system by it's
surroundings, its value is...
asked 56 minutes ago