The manufacturing costs of Ackerman Industries for the first three months of the year follow:
Total Costs | Units Produced | |||
January | $60,280 | 1,440 | units | |
February | 56,160 | 845 | ||
March | 87,360 | 2,145 |
Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar.
a. Variable cost per unit | $ |
b. Total fixed cost | $ |
part 2
Willie Company sells 35,000 units at $29 per unit. Variable costs are $18.56 per unit, and fixed costs are $204,600.
Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations.
a. Contribution margin ratio (Enter as a whole number.) | % | |
b. Unit contribution margin (Round to the nearest cent.) | $ | per unit |
c. Income from operations | $ |
Part 3
Break-Even Point
Hilton Enterprises sells a product for $77 per unit. The variable cost is $38 per unit, while fixed costs are $214,461.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $85 per unit.
a. Break-even point in sales units | units |
b. Break-even point if the selling price were increased to $85 per unit | units |
part 4
Target Profit
Trailblazer Company sells a product for $185 per unit. The variable cost is $85 per unit, and fixed costs are $800,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $208,000.
a. Break-even point in sales units | units | |
b. Break-even point in sales units if the company desires a target profit of $208,000 | units |
part 5
Sales Mix and Break-Even Analysis
Heyden Company has fixed costs of $795,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow:
Product | Selling Price | Variable Cost per Unit | Contribution Margin per Unit | ||||||
$480 | $270 | $210 | |||||||
ZZ | 250 | 140 | 110 |
The sales mix for Products QQ and ZZ is 60% and 40%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number.
a. Product QQ units
b. Product ZZ units
part 6
Operating Leverage
Snellville Co. reports the following data:
Sales | $965,800 | |
Variable costs | 637,400 | |
Contribution margin | $328,400 | |
Fixed costs | 262,700 | |
Income from operations | $65,700 |
Determine Snellville Company's operating leverage. Round your answer to one decimal place.
part 7
Margin of Safety
The Rachel Company has sales of $680,000, and the break-even point in sales dollars is $537,200.
Determine the company's margin of safety as a percent of current
sales.
%
a) variable cost per unit = Change in cost/Change in unit
= (87360-56160)/(2145-845)
Variable cost per unit = 24 per unit
Fixed cost = Total cost-variable cost
= 87360-(2145*24)
Fixed cost = $35880
Note : please post each question individually as per Chegg guidelines because all question are independent questions
The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total...
High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year follow: Total Costs Units Produced January $1,900,000 20,000 units February 2,250,000 27,000 March 2,400,000 30,000 Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost. Round all answers to the nearest whole dollar. a. Variable cost per unit b. Total fixed cost Contribution Margin Lanning Company sells 160,000 units at $45 per unit. Variable costs are $27...
Sales Mix and Break-Even Analysis Einhorn Company has fixed costs of $105,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $50 $35 $15 ZZ 60 30 30 The sales mix for products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. a. Product QQ units b. Product ZZ units
January High-Low Method The manufacturing costs of Ackerman Industries for the first three months of the year low Total Costs Units Produced $413,010 3,380 units February 278,640 March 433,440 Using the high-low method, determine (a) the variable cost per unit and (b) the total foxed cost nearest whole dollar. a. Variable cost per unit b. Total fixed cost 1,800 5,400 per unit and (b) the total fixed cost. Round all answers to the Contribution Margin Ratio a. Yount Company has...
Sales Mix and Break-Even Analysis Michael Company has fixed costs of $1,684,800. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products fa Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $400 $300 zz 480 380 100 The sales mix for Products QQ and ZZ is 80% and 20%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to nearest...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $402,380. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $140 $60 $80 ZZ 180 140 40 The sales mix for Products QQ and ZZ is 55% and 45%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Sales Mix and Break-Even Analysis Heyden Company has fixed costs of $773,480. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $240 $160 $80 ZZ 300 160 140 The sales mix for Products QQ and ZZ is 30% and 70%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $592,000. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $210 $110 210 $100 100 zz 310 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Sales Mix and Break-Even Analysis Megan Company has fixed costs of $978,040. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $360 $160 $200 ZZ 520 360 160 The sales mix for Products QQ and ZZ is 90% and 10%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the...
Megan Company has fixed costs of $268,560. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $280 $190 $90 ZZ 170 140 30 The sales mix for Products QQ and ZZ is 70% and 30%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
Michael Company has fixed costs of $814,880. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $740 $480 $260 ZZ 560 440 120 The sales mix for Products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...