Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs. Sales: $1,800,000 Selling expenses—variable: $70,000 Direct materials: 430,000 Selling expenses—fixed: 65,000 Direct labor: 360,000 Administrative expenses—variable: 20,000 Manufacturing overhead—variable: 380,000 Administrative expenses—fixed: 60,000 Manufacturing overhead—fixed: 280,000 What is the variable cost per bottle? What is the Break even cost in units? What are the sales dollars required to earn net income of $180,000?

Williams Company bottles and distributes Supe Juice, a soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2022, management estimates the following revenues and costs. Sales: $1,800,000 Selling expenses—variable: $70,000 Direct materials: 430,000 Selling expenses—fixed: 65,000 Direct labor: 360,000 Administrative expenses—variable: 20,000 Manufacturing overhead—variable: 380,000 Administrative expenses—fixed: 60,000 Manufacturing overhead—fixed: 280,000 What is the variable cost per bottle? What is the Break even cost in units? What are the sales dollars required to earn net income of $180,000?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter20: Inventory Management: Economic Order Quantity, Jit, And The Theory Of Constraints

Section: Chapter Questions

Problem 7E: Ottis, Inc., uses 640,000 plastic housing units each year in its production of paper shredders. The...

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Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,800,000 Selling expenses-variable $105,000 Direct materials 510,000 Selling expenses-fixed 62,000 Direct labor 390,000 Administrative expenses-variable 25,000 Manufacturing overhead-variable 410,000 Administrative expenses-fixed 96,000 Manufacturing overhead-fixed 130,000
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Determine the sales dollars required to earn net income of $230,000. Required sales 481000 Ű Ĉ Cullumber Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales $1,650,000 Selling expenses-variable $73,000 Direct materials 520,000 Selling expenses-fixed 52,000 Direct labor 340,000 Administrative expenses-variable 27,000 360,000 Administrative expenses-fixed 59,000 Manufacturing overhead-variable Manufacturing overhead-fixed 120,000 3 Ć Compute the break-even point in (1) sales units and (2) sales dollars. (Round answers to O decimal places, e.g. 1,225.) (1) Break-even point 2310000 units (2) Break-even point $ 1155000 S Compute the contribution margin ratio and the margin of safety ratio. Contribution margin ratio 20 % Margin of safety ratio 30 % 3 Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places,…
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers. For the year 2022, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $2,000,000 550,000 400,000 420,000 190.000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $109,000 58,000 21,000 52.000
Carla Vista Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 50 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales $ 2,000,000 Selling expenses-variable $ 109.000 Direct materials 550,000 Selling expenses-fixed 58.000 Direct labor 400,000 Administrative expenses-variable 21.000 Manufacturing overhead-variable 420.000 Administrative expenses-fixed 52,000 Manufacturing overhead-fixed 190,000 Prepare a CVP income statement for 2020 based on management's estimates. CARLA VISTA cOMPANY CVP Income Statement (Estimated) For the Year Ending December 31, 2020 Sales 2000000 Variable Expenses Selling Expenses 52000 Administrative Expenses v 300000 Net Income/(Loss) $ 200000 eTextbook and Media Calculate variable cost per bottle. (Round variable cost per bottle to 3 decimal places, e.g. 0.251.) Variable cost per bottle 0.375
Assume that total sales revenue for 2018 is projected to be $1,153,549. Assume also the following costs for Shannon’s Brewery: Packaged (Cans & Bottles) $150,000 Kegs $80,000 Shrinkage/WIP Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $29,454 Trade Promotion $31,039 Sales Promotion $18,000 Salaries & Benefits $180,000 Compute Shannon’s %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%.
Assume that total sales revenue for 2018 is projected to be $1,015,848. Assume also the following costs for Shannon's Brewery: Packaged (Cans & Bottles) Kegs Shrinkage/WIP $150,000 $80,000 Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $28,568 Trade Promotion $32,807 Sales Promotion $18,000 Salaries & Benefits $180,000 Compute Shannon's %NMC. Round your answer to the nearest percent. For example, if your computed answer is 99.4% your answer rounds down to 99%. If your computed answer is 99.5% you should round up to 100%. DO NOT INCLUDE THE % SIGN IN YOUR ANSWER.
Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,760,000 based on a sales volume of 260,000 video disks. Disk City has been selling the disks for $19 each. The variable costs consist of the $8 unit purchase price of the disks and a handling cost of $2 per disk. Disk City’s annual fixed costs are $580,000. Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.) Q. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $19? (Do not round intermediate calculations. Round your final answer to the nearest whole number.)
Assume that projected revenue for 2018 is 1,255,160. Also assume the following projected 2018 costs in each of the cost categories from question one: Packaged (Cans & Bottles) Kegs Shrinkage/WIP $130,715 $65,801 Loss $42,000 Contract Labor $9,000 Direct Labor $240,000 Freight $18,000 Consumer Advertising $30,000 Trade Promotion $30,000 Sales Promotion $18,000 Salaries & Benefits $180,000 Given these costs, compute Shannon's projected contribution in dollars.