Homework Answers
| Production and sale volume | current (no automation) | proposed (automation) | |||
| 82000 | units | 129000 | units | ||
| per unit | total | per unit | total | ||
| sales revenue | 95 | 7790000 | 95 | 12255000 | |
| variable costs: | |||||
| direct material | 19 | 1558000 | 19 | 2451000 | |
| direct labor | 15 | 1230000 | 12 | 1548000 | |
| variable manufacturing costs | 10 | 820000 | 10 | 1290000 | |
| total variable overhead | 44 | 3608000 | 41 | 5289000 | |
| contribution margin | 51 | 4182000 | 54 | 6966000 | |
| fixed manufacturing costs | 1080000 | 2200000 | |||
| net operating income | 3102000 | 4766000 | |||
| accounting rate of return (automation) = increase in net operating income/initial investment | |||||
| accounting rate of return = (4766000-3102000)/8230000 | |||||
| accounting rate of return = 20.22% | |||||
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B B complete and correct. Current (no automation) 82,000 units Per Unit Total s 7.790,000 Proposed (automation) 1...
The following information applies to the questions displayed below) Beacon Company is considering automating its production...
The following information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial investment in automation would be $8.23 million, and the equipment has a useful life of 7 years with a residual value of $1,090,000. The company will use straight line depreciation. Beacon could expect a production increase of 47,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 82,000 units Per Proposed (automation)...
Beacon Company is considering automating its production facility. The initial investment in automation would be $8.26million,...
Beacon Company is considering automating its production facility. The initial investment in automation would be $8.26million, and the equipment has a useful life of 7 years with a residual value of $1,190,000. The company will use straight-line depreciation. Beacon could expect a production increase of 41,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) 78,000 units 119,000 units Production and sales volume Per Unit Total Per Unit Total...
Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating...
Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $11.25 million, and the equipment has a useful life of 10 years with a residual value of $1,050,000. The company will use straight- line depreciation. Beacon could expect a production increase of 32,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 78,000 units Per...
pter 19 Homework Saved Sales price per unit $ 300 per Units produced this year unit...
pter 19 Homework Saved Sales price per unit $ 300 per Units produced this year unit Units sold this year 120,000 units Units in beginning-year inventory 123, 250 units Beginning inventory costs 3, 250 units Variable (3,250 units * $135) $ Fixed (3,250 units * $80) 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor unit Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,600,000 Selling and administrative costs this year Variable $1,400,000 Fixed...
1. if 9,000 units are sold, what is the variable cost per unit sold? 2. if...
1. if 9,000 units are sold, what is the variable cost per unit
sold?
2. if 9,000 units are sold what is the total amount of
variable costs related to the units sold?
Martinez Company's relevant range of production is 8.500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount...
1. 2. what incremental cost will martinez incur if it increases production from 10,000 to 10,001 units? 16 Martinez...
1.
2. what incremental cost will martinez incur if it increases
production from 10,000 to 10,001 units?
16 Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Part 14 of 15 per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 10...
8) If 12,500 units are produced, what is the average fixed manufacturing cost per unit produced?...
8) If 12,500 units are produced, what is the average fixed
manufacturing cost per unit produced?
9) If 8,000 units are produced, what is the
total amount of fixed manufacturing cost incurred to support this
level of production?
10) If 12,500 units are produced, what is the total
amount of fixed manufacturing cost incurred to support this level
of production?
11) If 8,000 units are produced, what is the total
amount of manufacturing overhead cost incurred to support this
level of production? What...
CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017....
CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017. Variable cost per unit is $60, and total fixed costs are $1,640,000. Required 3-22 1. Calculate (a) contribution margin and (b) operating income. 2. Garrett's current manufacturing process is labor intensive. Kate Schoenen, Garrett's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. Garrett...
10:44 Managerial Accounting Chapter 1... Martinez Company's relevant range of production is 7,500 units to 12,500...
10:44 Managerial Accounting Chapter 1... Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? Explanation: Variable manufacturing overhead Number of Total the produced manufacturing Number of produced 2. For financial accounting purposes, what is the total amount of period costs incurred to sell...
Bailey Manufacturing sold 435,000 units of its product for $60 per unit in 2017. Variable cost...
Bailey Manufacturing sold 435,000 units of its product for $60 per unit in 2017. Variable cost per unit is $50, and total fixed costs are $1,740,000. Read the requirements Requirement 1. Calculate (a) contribution margin and (b) operating income. (a) Determine the formula used to calculate the contribution margin. Total sales - Total variable costs = Contribution margin The contribution margin is $ 4,350,000 (b) Determine the formula used to calculate the operating income Contribution margin- Total fixed costs Operating...
The following information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial investment in automation would be $8.23 million, and the equipment has a useful life of 7 years with a residual value of $1,090,000. The company will use straight line depreciation. Beacon could expect a production increase of 47,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 82,000 units Per Proposed (automation)...
Required information [The following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $11.25 million, and the equipment has a useful life of 10 years with a residual value of $1,050,000. The company will use straight- line depreciation. Beacon could expect a production increase of 32,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 78,000 units Per...
pter 19 Homework Saved Sales price per unit $ 300 per Units produced this year unit Units sold this year 120,000 units Units in beginning-year inventory 123, 250 units Beginning inventory costs 3, 250 units Variable (3,250 units * $135) $ Fixed (3,250 units * $80) 438,750 260,000 Total $ 698,750 Manufacturing costs this year Direct materials $ Direct labor unit Overhead costs this year Variable overhead $3,000,000 Fixed overhead $7,600,000 Selling and administrative costs this year Variable $1,400,000 Fixed...
1. if 9,000 units are sold, what is the variable cost per unit
sold?
2. if 9,000 units are sold what is the total amount of
variable costs related to the units sold?
Martinez Company's relevant range of production is 8.500 units to 13,500 units. When it produces and sells 11,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense Amount...
1.
2. what incremental cost will martinez incur if it increases
production from 10,000 to 10,001 units?
16 Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Average Cost Part 14 of 15 per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense $6.00 $3.50 $1.50 $4.00 $3.00 10...
8) If 12,500 units are produced, what is the average fixed
manufacturing cost per unit produced?
9) If 8,000 units are produced, what is the
total amount of fixed manufacturing cost incurred to support this
level of production?
10) If 12,500 units are produced, what is the total
amount of fixed manufacturing cost incurred to support this level
of production?
11) If 8,000 units are produced, what is the total
amount of manufacturing overhead cost incurred to support this
level of production? What...
CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017. Variable cost per unit is $60, and total fixed costs are $1,640,000. Required 3-22 1. Calculate (a) contribution margin and (b) operating income. 2. Garrett's current manufacturing process is labor intensive. Kate Schoenen, Garrett's production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. Garrett...
10:44 Managerial Accounting Chapter 1... Martinez Company's relevant range of production is 7,500 units to 12,500 units. When it produces and sells 10,000 units, its average costs per unit are as follows: Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? Explanation: Variable manufacturing overhead Number of Total the produced manufacturing Number of produced 2. For financial accounting purposes, what is the total amount of period costs incurred to sell...
Bailey Manufacturing sold 435,000 units of its product for $60 per unit in 2017. Variable cost per unit is $50, and total fixed costs are $1,740,000. Read the requirements Requirement 1. Calculate (a) contribution margin and (b) operating income. (a) Determine the formula used to calculate the contribution margin. Total sales - Total variable costs = Contribution margin The contribution margin is $ 4,350,000 (b) Determine the formula used to calculate the operating income Contribution margin- Total fixed costs Operating...
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