The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company:...
The following data refer to a single product, the TECHWHIZ, made by the Markdata Computer Company:
Sales price = $5,680
Direct materials cost (including purchased components) = $912
Direct labor cost = $237
Facilities costs (for a highly automated plant; mainly includes rent, insurance, taxes, and depreciation) = $2,392,400 per year
Required:
1. What is the contribution margin per unit?
2. What is the breakeven point, in units and in dollars? (Do not round intermediate calculations. Round up your answer to the next whole unit.)
3. What is the required level of sales (in units) if the company plans to increase facilities costs by 4% (to improve product quality and appearance) and has a desired before-tax profit (πB) of $240,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.)
4. If the company’s income tax rate is 25%, what unit sales are necessary to achieve an after-tax profit (πA) of $190,000? (Do not round intermediate calculations. Round up your answer to the next whole unit.)
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The following data refer to a single product, the TECHWHIZ, made
by the Markdata Computer Company:...
Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for...
Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for the year total $50,000. The selling price is $4 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $30,000. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax...
Check my work Cohen Company produces and sells socks. Variable cost is $12.60 per pair, and...
Check my work Cohen Company produces and sells socks. Variable cost is $12.60 per pair, and fixed costs for the year total $109,200. The selling price is $21 per pair. 0.25 points Skipped Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $58,800. (Do not round intermediate calculations.) 4. Calculate the sales...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Brighter 400 Cleaner Sales volume in units 600 Unit sales price Unit variable cost $1,000 $1,000 200 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleane is 2. Total fixed costs for the manufacture of both products are $295,000. Required: 1. Determine the breakeven...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 cleaner 600 $1,000 700 200 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $275,000. Required: 1. Determine the breakeven...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 Cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $300,000. Required: 1. Determine the breakeven...
Check my work Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products...
Check my work Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Brighter 400 Cleaner Sales volume in units 600 0.25 Unit sales price $1,000 $1,000 points Unit variable cost 200 700 Skipped The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are...
LACILISE VJU IVIUILIPITIUuuuur Kudly SIS LO Smith Company can produce two types of carpet cleaners, Brighter...
LACILISE VJU IVIUILIPITIUuuuur Kudly SIS LO Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are...
Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per...
Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per unit, and the sales price is $30.00 per unit. Finch desires to earn an annual profit of $50,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Rooney Company incurs annual fixed costs of $101,420. Variable costs for Rooney’s product are $21.35 per...
Rooney Company incurs annual fixed costs of $101,420. Variable
costs for Rooney’s product are $21.35 per unit, and the sales price
is $35.00 per unit. Rooney desires to earn an annual profit of
$46,000.
Required
Use the per unit contribution margin approach to determine the
sales volume in units and dollars required to earn the desired
profit. (Do not round intermediate calculations. Round your
final answers to the nearest whole number.)
Sales in dollars Sales volume in units
Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per...
Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per unit, and the sales price is $35.00 per unit. Solomon desires to earn an annual profit of $55,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Cohen Company produces and sells socks. Variable cost is $2.00 per pair, and fixed costs for the year total $50,000. The selling price is $4 per pair. Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $30,000. (Do not round intermediate calculations.) 4. Calculate the sales dollars required to make a before-tax...
Check my work Cohen Company produces and sells socks. Variable cost is $12.60 per pair, and fixed costs for the year total $109,200. The selling price is $21 per pair. 0.25 points Skipped Required: 1. Calculate the breakeven point in units. (Do not round intermediate calculations.) 2. Calculate the breakeven point in sales dollars. (Do not round intermediate calculations.) 3. Calculate the units required to make a before-tax profit of $58,800. (Do not round intermediate calculations.) 4. Calculate the sales...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Brighter 400 Cleaner Sales volume in units 600 Unit sales price Unit variable cost $1,000 $1,000 200 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleane is 2. Total fixed costs for the manufacture of both products are $295,000. Required: 1. Determine the breakeven...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 cleaner 600 $1,000 700 200 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $275,000. Required: 1. Determine the breakeven...
Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 Cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are $300,000. Required: 1. Determine the breakeven...
Check my work Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Brighter 400 Cleaner Sales volume in units 600 0.25 Unit sales price $1,000 $1,000 points Unit variable cost 200 700 Skipped The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are...
LACILISE VJU IVIUILIPITIUuuuur Kudly SIS LO Smith Company can produce two types of carpet cleaners, Brighter and Cleaner. Data on these two products are as follows: Sales volume in units Unit sales price Unit variable cost Brighter 400 $1,000 200 cleaner 600 $1,000 700 The number of machine hours to produce one unit of Brighter is 1, while the number of machine hours for each unit of Cleaner is 2. Total fixed costs for the manufacture of both products are...
Finch Company incurs annual fixed costs of $57,415. Variable costs for Finch's product are $20.10 per unit, and the sales price is $30.00 per unit. Finch desires to earn an annual profit of $50,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Rooney Company incurs annual fixed costs of $101,420. Variable
costs for Rooney’s product are $21.35 per unit, and the sales price
is $35.00 per unit. Rooney desires to earn an annual profit of
$46,000.
Required
Use the per unit contribution margin approach to determine the
sales volume in units and dollars required to earn the desired
profit. (Do not round intermediate calculations. Round your
final answers to the nearest whole number.)
Sales in dollars Sales volume in units
Solomon Company incurs annual fixed costs of $71,000. Variable costs for Solomon's product are $21.00 per unit, and the sales price is $35.00 per unit. Solomon desires to earn an annual profit of $55,000. Required Use the per unit contribution margin approach to determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
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