A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop can produce each thresher at a labor cost of P1,800. The cost of materials for each unit is P2,500. The variable costs amount to P650 per unit, while fixed charges incurred per annum totals P69,000. If the portable threshers are sold at P7,800 per unit, how many units must be produced and sold per annum to break-even? Support your answer with computations and also
Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…
A: The contribution margin or dollar contribution per unit is computed by subtracting the variable cost…
Q: 3. A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The…
A: There are two type of costs that a business incurs. One is the fixed costs and the other is the…
Q: Muscat Inc. has been manufacturing its own Camera for its Mobile Phone. The company is currently…
A: Working:
Q: Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and…
A: Income=Sales-Expenses
Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…
A: PARTICULARS PRODUCT TLX PRODUCT MTV CONTRIBUTION MARGIN PER UNIT $ 9.1 $ 3.12 UNITS PRODUCED…
Q: Al Bawadir manufacturing LLC, who is a leading bottle manufacturing company in Muscat. Mr.Saud, who…
A: Total cost-:The Total Cost is the substantial cost spent in the generation of a provided level of…
Q: The demand for the products far exceeds the direct materials available to produce the products. Brac…
A: Bottleneck item= Brac quantity 1 Contribution per unit and Ranking of Porduct…
Q: Unicorn Company has been manufacturing its own seat for its bicycles. The company is currently…
A: Incremental analysis is a decision-making tool used to evaluate financial data and choose between…
Q: Describe the Ngeboba transaction flow with the two companies and explain with each of the transfer…
A: Transfer pricing can be defined as the value which is attached to the goods or services transferred…
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: Here in this question, we are required to calculate break even point in unit and make a graphical…
Q: Waterway Industries produces a product that requires 2.60 pounds of materials per unit. The…
A: Standard costing: Under standard costing the cost will be estimated at the beginning based on past…
Q: Manor, Inc. currently manufactures 1,000 subcomponents per month in one of its factories. The unit…
A: The cheaper of the two buying options to be selected. Cost under option A = 1000 units * $170 per…
Q: Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…
A: If the company decides to buy the product from outside only fixed overheads cost will be incurred.
Q: Describe the Ngeboba transaction flow with the two companies and explain with each of the transfer…
A: Transfer pricing can be defined as the value which is attached to the goods or services transferred…
Q: Owen Conner works part-time packaging software for a local distribution company in Indiana. The…
A: Fixed Cost = 10,000 Direct labor Cost = 3.50 per package Direct Material Cost = 4.50 per package…
Q: Three machines are employed in an isolated area. They each produce 2000 units of output per month,…
A: given information each produces = 2000 units 1st machine requires raw materials = $20,000 2st…
Q: How would i find the variable cost per unit?
A: Variable costs: Variable costs refers to those costs that change in proportion, with the change in…
Q: Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge…
A: SOLUTION- HIGH -LOW METHOD- IT IS A WAY OF ATTEMPTING TO SEPARATE OUT FIXED COST AND VARIABLE COST…
Q: Carson Manufacturing, Inc., sells a single product for $34 per unit. At an operating level of 8,000…
A: revenue earned from Special Order will be 2000 Units * $18 per unit= $36,000.
Q: Widgeon Co. manufactures three products: Bales, Tales, and Wales. Their selling prices are $55, $78,…
A: CVP analysis is considered as a decision-making tool that helps management to make strategies and…
Q: Cinta Berhad is a company that produces children body lotion for domestic and overseas market. One…
A: In deciding upon whether to continue producing internally or to purchase from outside supplier,…
Q: small shop in Bulacan fabricates portable threshers for rice producers in the locality. The shop can…
A: Since at break even point Total revenue = Total cost
Q: Owen Connor works part-time packaging software for a local distribution company in Indiana The…
A: The break-even point is that level of sales at which the operating income (EBIT) becomes zero. In…
Q: Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…
A: Given: Costs: Direct material per unit $4.00 Direct Labor per unit $5.00 Variable OH…
Q: ........................................................................................... 80…
A: No, La Salle, Inc. should not accept the offer of outside supplier since it they will have to incur…
Q: The Mad Hatter Company owns a machine that manufactures two types of chimney caps. Production time…
A: The calculation of contribution margin for Cap A and Cap B has been made as follows:
Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…
A: Contribution refers to earnings left after deducting all direct costs from the sales revenue. It is…
Q: A manufacturer has a contract to produce 5,000 units of a certain device. The device can be made by…
A: Option A: The device can be made by highly-trained workmen working individually. Option B: The…
Q: Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase…
A: Differential analysis or incremental analysis is an accounting technique used by management. In…
Q: John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in…
A: Rejecting order will be resulted that company would produce 1000 tractors and same fixed cost will…
Q: Describe the Ngeboba transaction flow with the two companies and explain with each of the transfer…
A:
Q: Bronco Company owns a machine that can produce two specialized products. Production time for Product…
A: Formula: Contribution margin per production hour = Contribution margin per unit x Units produced per…
Q: A tiny firm in Bulacan makes portable threshers for the area's palay growers. The shop can create…
A: Here in this question, we are required to calculate break even point in unit and make a graphical…
Q: Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is…
A: Lets understand the basics. When management needs to choose between the make or buy, management…
Q: Campbell Corporation, which makes and sells 79,400 radios annually, currently purchases the radio…
A: The differential analysis is made by the company to measure the difference in the cost and revenue…
Q: Widgeon Co. manufactures three products: Bales, Tales, and Wales. The selling prices are $55, $78,…
A: Solution: Particulars Bales Tales Wales Selling Price 55 78 32 Less: Variable Price 20 50…
Q: Jumbo Co. sells a special toy product in Hong Kong. The cost information for the current year is as…
A: The question is based on the concept of Cost Accounting.
Q: he James Company manufactures widgets that sell for $120 each. The company's unit cost for each…
A: Solution: Relevant cost of making = Direct materials + direct labor + variable overhead = 30+40 +…
Q: Hisense Ltd is planning to sell 2,200 and produce 2,000 wicker baskets during June. Each unit…
A:
Q: Mervin Company produces circuit boards that sell for $8 per unit. It currently has capacity to…
A: 1.
Q: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has…
A: In special order, relevant cost of the product is compared with the selling price of the product.…
Q: LVR Printing Services estimates that it will require 1,000 reams of a certain type of paper in a…
A: Economic order quantity is the optimum units to be ordered by the business entity. At this level of…
Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…
A: working note: The Contribution per unit Will be $8.05 $2.76 Product TLX =…
Q: A small shop in Bulacan fabricates portable threshers for palay producers in the locality. The shop…
A: Breakeven points may be used in a lot of different situations. The breakeven point in a property,…
Q: Steve company produces 30000 units of parts each year for use on its production line. The cost per…
A: Relevant cost of S6 per unit = Direct material cost + direct labor cost + variable manufacturing…
Q: Kobe Company has manufactured 200 partially finished cabinets at a cost of $102,000. These can be…
A: Incremental income = Incremental Sales revenue – Incremental costs
Q: Colt Company owns a machine that can produce two specialized products. Production time for Product…
A: Lets understand the basics. When there is any constrain to fulfill the needs of customer then…
Q: A local electronic repair shop uses 15,000 units of mobile batteries each year. It costs RO 30 to…
A: Economic order Quantity =2×A×OC A = Annual cost O = Ordering cost C = Carrying cost
Step by step
Solved in 2 steps
- Given problem: A small shop in Bulacan fabricates portable threshers for rice producers in the locality. The shop can produce each thresher at a labor cost of Php 2,000. The cost of materials for each unit is Php 2,600. The variable costs amount to Php 700 per unit, while fixed charges incurred per annum total Php 75,000. If the portable threshers are sold at Php 8,000 per unit, how many units must be produced and sold per annum to break even? *Round off to 2 decimalsCampbell Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6,900 6,400 4,100 9,600 26,600 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Campbell for $2.80 each. Required a. Calculate the total relevant cost. Should Campbell continue to make the containers? b. Campbell could lease the space it currently uses in the manufacturing process. If leasing would produce $12,800 per month, calculate the total avoidable costs. Should Campbell continue to make the containers? a. Total relevant cost Should Campbell continue to make the containers? b. Total avoidable cost Should Campbell continue to make the containers?A tiny firm in Bulacan makes portable threshers for the area's palay growers. The shop can create each thresher for P1,800 in labour. Each unit has a material cost of P2,500. The variable expenses per unit are P650, whereas the annual fixed costs are P69,000. How many portable threshers must be built and sold per year to break even if each unit costs P7,800? Computes and a graphical solution can both be used to back up your response. (Please offer a COMPLETE and UNDERSTANDABLE answer.) Also, be sure to write legibly.)
- The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs 70 All fixed costs 10 If Piss Division has excess capacity and can accommodate all Peace's requests, will Piss accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.Vernon Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $5,700 6,500 3,200 8,400 27,100 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Vernon for $2.60 each. Required a. Calculate the total relevant cost. Should Vernon continue to make the containers? b. Vernon could lease the space it currently uses in the manufacturing process. If leasing would produce $12,700 per month, calculate the total avoidable costs. Should Vernon continue to make the containers? a. Total relevant cost a. Should Vernon continue to make the containers? b. Total avoidable cost b. Should Vernon continue to make the containers?Thornton Electronics currently produces the shipping containers It uses to deliver the electronics products It sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 5,100 6,400 3,300 9,900 28,000 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Thornton for $2.60 each. Required a. Calculate the total relevant cost. Should Thornton continue to make the containers? b. Thornton could lease the space it currently uses in the manufacturing process. If leasing would produce $12,100 per month, calculate the total avoidable costs. Should Thornton continue to make the containers? a. Total relevant cost a. Should Thornton continue to make the containers? b. Total avoidable cost b. Should Thornton continue to make the containers?
- The Peace Department of Shalom Company uses 5,000 kilograms per month in its production of Peace products. It presently buys all the kilograms of materials it needs from outside supplier at a cost of P100. The Piss Division of Shalom Company manufactures the exact type of material that the Peace Department requires. The Piss Division is operating at its capacity of 15,000 units per month and sells all its output to a local manufacturer at P108 per unit. The following cost data are available for its 15,000 units: Variable production costs All fixed costs 70 10 If Piss Division sells all units to the local manufacturer, will it accept Peace's offer at P75? Yes or no? Use the underlined words as your choice. Input answers in capital letters.Finch Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,200 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs $ 6,400 6,000 4,000 11,400 27,300 *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Finch for $2.70 each. Required a. Calculate the total relevant cost. Should Finch continue to make the containers? b. Finch could lease the space it currently uses in the manufacturing process. If leasing would produce $11,000 per month, calculate the total avoidable costs. Should Finch continue to make the containers? a. Total relevant cost Should Finch continue to make the containers? b. Total avoidable cost Should Finch continue to make the containers?Rundle Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,300 containers follows. Unit-level materials. Unit-level labor Unit-level overhead Product-level costs* Allocated facility-level costs One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rundle for $2.60 each. Required a. Calculate the total relevant cost. Should Rundle continue to make the containers? b. Rundle could lease the space it currently uses in the manufacturing process. If leasing would produce $11,600 per month, calculate the total avoidable costs. Should Rundle continue to make the containers? Answer is complete but not entirely correct. $ a. Total relevant cost a. Should Rundle continue to make the containers? b. Total avoidable cost b. Should Rundle continue to make the containers? 190.650,000 Yes $24,180,000 $ 5,200 6,100 4,000 7,800…
- Rooney Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs* $ 5,200 6,500 3,600 9,300 26,600 Allocated facility-level costs *One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Rooney for $2.70 each. Required a. Calculate the total relevant cost. Should Rooney continue to make the containers? b. Rooney could lease the space it currently uses in the manufacturing process. If leasing would produce $11,500 per month, calculate the total avoidable costs. Should Rooney continue to make the containers? a. Total relevant cost Should Rooney continue to make the containers? b. Total avoidable cost Should Rooney continue to make the containers?Jordan Electronics currently produces the shipping containers it uses to deliver the electronics products it sells. The monthly cost of producing 9,100 containers follows. Unit-level materials Unit-level labor Unit-level overhead Product-level costs Allocated facility-level costs $ 5,700 6,800 3,900 8,100 27,200 One-third of these costs can be avoided by purchasing the containers. Russo Container Company has offered to sell comparable containers to Jordan for $2.90 each. Required a. Calculate the total relevant cost. Should Jordan continue to make the containers? b. Jordan could lease the space it currently uses in the manufacturing process. If leasing would produce $12.300 per rhonth, calculate the total avoidable costs. Should Jordan continue to make the containers? a. Total relevant cost Should Jordan continue to make the containers? b. Total avoidable cost Should Jordan continue to make the containers?Goodstone Tire Corporation sells tires for $100 each. Per unit costs associated with producing and selling the tires are: Direct materials $35 Direct labor 10 Factory overhead 20 Selling and administrative 15 The variable portion of the factory overhead is $8 per unit. A foreign company wants to purchase 10,000 tires for $70 each. The order would not require any selling or administrative costs. The purchaser will pay the shipping costs, but Goodstone will have to pay a $100,000 inspection fee in order to be able to make the foreign sale. Accepting the special order will not affect current sales or production. What effect would accepting the special order have on Goodstone's net operating income?