ecunomiC uncertainties The following information is available Fixed costs per month, S 2.400,000 Variable cost per...
1. The fixed costs incurred by a small research are S 200,000 per year, Variable costs are 60 % of the annual revenue. If the annual revenue is $ 300,000, then the annual profit/loss is: a.$100,000 profit b.$120,000 profit . $80,000 profit d. $80,000 loss 2. Standard cost per unit of output is established: In advance of actual production or service delivery b. During actual production or service delivery c.After actual production or service delivery d None of the above...
A manufacturer produces 100 units per month with fixed costs of $3030 per month. For every 100 units produced there are 4 faulty items to dispose of, resulting in 96% of production being acceptable Production cost $90 per unit and disposal is free. The 4 units made x $90-$360 The cost formula for decision-making would look like this: $3,030 $360+$90 (units produced)(.96) True O False
Edgerron Company is able to produce two products, G and B, with the same machine in its factory. The following information is available Product G Product B 120 72 Selling price per unit Variable costs per unit $ 90 30 Contribution margin per unit $ 60 $ 48 Machine hours to produce 1 unit Maximum unit sales per month 0.4 hours 1.0 hours 600 units 200 units The company presently operates the machine for a single eight-hour shift for 22...
Marge Manufacturing has the following information available for the month: • Budgeted production is 400,000 units and the firm’s selling price per unit is $25. • Each unit produced is budgeted to require 2 ounces of material B at a cost of $2 per ounce and 0.25 direct labor hours at a cost of $30 per hour Instead of just giving an answer, it would be great if you can explain how to do it/why b. How many ounces of...
9. A company provided the following information: $500,000 $30 Sales revenue Variable cost per unit Contribution margin ratio Total fixed cost 0.40 $110,000 Using the above information, determine the: a) Selling price per unit b) Breakeven point in units and dollars. Prove the results. c) Contribution margin per unit d) Margin of safety in dollars and as a percent
4. When the selling price per unit and variable costs per unit remain constant, if total fixed costs decrease, which of the following statements is true? A. Breakeven point in units increases. C. Breakeven point in units decreases B. Contribution margin decreases. D. Contribution margin increases. lace Furniture sells two products, tables and chairs. A table sells for $80 per unit riable costs of $25 per unit. A chair sells for $60 per unit with variable costs of Total fixed...
please show work/give explaination 21 180-120 26-11 * Estimate unit variable cost Month Total costs Activity volume in units September $120 October $90 11 0 November - $150 31 December $180 26 H A. not enough information need to know the contribution margin statement in the relevant range B. $3.00/unit C. $4.00/unit D. $4.50/unit E. $6.00/unit Z At current production volume of 1,000 units, variable costs are $6 per unit and fixed costs are $4 per unit, for a total...
The Biloxi Company has the following cost structure: fixed costs of $70,000 per month and variable costs of $50 per unit. The Birmingham Company has the following cost structure: fixed costs of $60,000 per month and variable costs of $60 per unit. Both companies make the same product, which sells for $100 per unit. There is a sales level at which these two companies earn the same profits. What is that sales level? Which company is more profitable as sales...
Question 2 The fixed costs for a company are $732.00 per month, and their variable cost per unit is $6.60. Suppose the company insists on producing 120 units, the selling price per unit required to break even is $
A plant operation has fixed costs of $3,000,000 per year, and ts output capacity is 100,000 electrical appliances per year. The vaniable cost is $30 per unit, and the product sells for $90 per unit a. Construct the economic breakeven chart b. Compare annual profit when the plant is operating at 70% of capacity with the plant opera on at 100% capacity Assume that the frst 70% of capacity output s sold at 90 per unit and that the remaining...