Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 Denominator: = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target

Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: 1 Denominator: = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Denominator: Units to Achieve Target = Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Denominator: Dollars to Achieve Target = Dollars to achieve target Ch
Sunn Company manufactures a single product that sells for $120 per unit and whose variable costs are $90 per unit. The company's annual fixed costs are $432.000 Management targets an annual income of $750,000. (1) Compute the unit sales to earn the target income. Numerator: 1 Denominator: (2) Compute the dollar sales to earn the target income.. Numerator: Denominator P M = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Sunn Company manufactures a single product that sells for $240 per unit and whose variable costs are $192 per unit. The company's annual fixed costs are $734,400. Management targets an annual income of $1,200,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %
Jamison Company produces and sells Product X at a total cost of $1,300 per unit, of which $880 is product cost and $420 is selling and administrative expenses. In addition, the total cost of $1,300 is made up of $740 variable cost and $560 fixed cost. The desired profit is $169 per unit. Determine the markup percentage on total cost.fill in the blank 1 %
Jamison Company uses the total cost method of applying the cost-plus approach to product pricing. Jamison produces and sells Product X at a total cost of $800 per unit, of which $540 is product cost and $260 is selling and administrative expenses. In addition, the total cost of $800 is made up of $460 variable cost and $340 fixed cost. The desired profit is $168 per unit. Determine the markup percentage on total cost. %
A company reports the following information for the single product it manufactures. Sales price Variable cost per unit Total fixed costs Target income (a) Compute contribution margin per unit. $ 230 per unit $ 161 per unit $ 986,700 per year $572,700 per year Contribution margin (b) Compute the break-even point in units. Numerator (c) Compute the unit sales to earn the target income. Numerator Denominator = Break-Even Units = = Break-even units Denominator = Units to Achieve Target = Units to achieve target
Mallory Company uses the product cost method of applying the cost-plus approach to product pricing. It produces and sells Product X at a total cost of $35 per unit, of which $28 is product cost and $7 is selling and administrative expenses. In addition, the total cost of $35 is made up of $24 variable cost and $11 fixed cost. The desired profit is $8 per unit. Determine the markup percentage on product cost. Round your answer to one decimal place. %
The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.
Use the information below to answer the following question(s). Franscioso Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $28.50 Variable costs per unit: Direct material $5.25 Direct manufacturing labour $1.15 Manufacturing overhead $0.25 Selling costs $1.85 Annual fixed costs $110,000 The Franscioso Company contribution margin ratio is O A. 0.702:1. O B. 1.425:1. O C. 0.298:1. O D. 1.102:1. O E. 0.637:1.
Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? Finisk a. 47.5% O b. 52.5% O c. 70% ype here to search & 7. V 3 5. 8. W. R Y. G H. V M alt ctri alt 立