ouse Inc. is a small distributor of mechanical pencils. Grouse identifies its three major activities and cost pools as ordering d storage, and shipping, and it reports the following details for 2019: Requirement If all other costs and cost-driver information remain the same, by how much must Grouse reduce its total cost and cost per unit if it is to earn the same target operating income in 2020 as it earned in 2019 (and thereby earn its required rate of return on investment)?
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- a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the year ended December 31, 2019, detailing the components of total fixed costsand clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars.The cost data for BC Billing Solutions for the year 2020 is as follows: A. Using the high-low method, express the company’s overtime wages as an equation wherexrepresents number of invoices processed. Assume BC has monthly fixed costs of $3,800. B. Predict the overtime wages if 9,000 invoices are processed. D. Using Excel, create a scatter graph of the cost data and explain the relationship between the number of invoices processed and overtime wage expense.Deco Tiles is a small distributor of marble tiles. Deco identifies its three major activities and cost pools as ordering, receiving and storage, and shipping, and it reports the following details for 2019: (Click the icon to view the details.) For 2019, Deco buys 280,000 marble tiles at an average cost of $3 per tile and sells them to retailers at an average price of $7 per tile. Assume Deco has no fixed costs and no inventories. Data table Activity 1. Placing and paying for orders of marble tiles 2. Receiving and storage 3. Shipping of marble tiles to retailers Cost Driver Number of orders Loads moved Number of shipments Quantity of Cost Driver 500 5,000 2,200 Cost per Unit of Cost Driver $80 per order $60 per load $50 per shipment X
- The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.Answer what is being asked. Show your computation on the space provided. 1. Roxas company sold 23,430 units of product A in 2020 which 10% compared to the units sold in 2019. The products were sold at P300 per unit. Because of heavy advertising and other promotional activities and shift in buyer's preferences, the company expect to increase the sales by 15% in 2021 against the 2020 performance. The company plans to sell the product at P350 per unit. Required: Prepare the sales budget Sales Budget 2021 Estimated Price Selling Units Sales Projected SalesDuring 2019, it cost Sheridan Company $20 per unit to produce part T5. During 2020, it has increased to $25 per unit. In 2020, Southside Company has offered to provide Part T5 for $18 per unit to Sheridan. As it pertains to the make-or-buy decision, which statement is true? O Differential costs are $7 per unit. O Incremental revenues are $5 per unit. O Incremental costs are $2 per unit. O Net relevant costs are $2 per unit.
- The owners would like to know what reasons caused the current performance of the company and ask your opinion. Through review of the complete records you were able to obtain this additional information: (1) The selling price for every unit is P7.20 during 2018 and; (2) The marketing department did a tremendous job and was able to increase sales units by 20% during 2019. The percentage increase (decrease) in unit cost is: a. 20% b. (20%) c. 44% d. (44%)Dalen Company prepared the following preliminary forecast concerning Product D for 2019 assuming no expenditure for advertising (refer to the attached picture): Based on a market study, Dalen estimates that it could increase the unit selling price by 15% and increase the unit sales volume by 10% if P100,000 was spent in advertising. Assuming that Dalen incorporates these changes in its 2019 forecast, what should be the operating income for Product D? selling price per unit 10 unit sales 100000 variable cost 600000 fixed cost 300000. Eren Company is manufacturer of its only one product line. It had sales of P400,000 for 2019 with a contribution margin ratio of 20 percent. Its margin of safety ratio was 10 percent. How much is the company’s fixed costs?
- In 2018, Zahner uses its own salespeople, who demand a 15% commission. If all other cost-behavior patterns are unchanged, how much revenue must the salespeople generate in order to earn the same operating income as in 2017?Mr. Brooks has set the revenue target for 2018 at a level of $875,000 (or 25,000 bowls). He believes an additional marketing cost of $16,500 for advertising in 2018, with all other costs remaining constant, will be necessary to attain the revenue target. What is the net income for 2018 if the additional $16,500 is spent and the revenue target is met?In April of 2021, Best Speaker Company expects to sell 470 bluetooth speaker units. Expenses are as follows: Cost of goods sold is P178 per unit Shipping costs are P31 per unit Miscellaneous costs are P10 per unit Salaries are P80,000 per month Rent is P20,000 per month Utilities are P10,000 per month Calculate the following for April 2021: A. Variable Operating Expense B. Fixed Operating Expense C. Total Operating Expense