A company manufactures a product that is used in-house and has commercial applications with an annual fixed cost of RM10,000. The direct labour is RM3.50 per unit, and the material cost is RM4.50 per unit. The selling price targeted RM12.50 per unit and will be marked up for 5-10 per cent. Choose ONE (1) in percentage mark up value in the range and calculate the breakeven point. OPEN- ENDED C3
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- An organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeks Maximum delivery time: 3.5 weeks Normal usage: 52 000 units per year Purchase price per unit: R8.50 Cost of placing an order: R18.00 Interest rate: 2% per year Storing cost per unit: R2.50 a). Calculate the safety stock b). Calculate the lead timeAn organisation manufactures a single product. The following information with regard to the raw material needed in the production process is supplied to you: Normal delivery time: 2.5 weeks Maximum delivery time: 3.5 weeks Normal usage: 52 000 units per year Purchase price per unit: R8.50 Cost of placing an order: R18.00 Interest rate: 2% per year Storing cost per unit: R2.50 a). Calculate the lead time demandKLM Company produces a single product. The selling price is OMR 40 a unit and the variable costs is OMR 25 a unit. The annual fixed costs of the business are OMR 4000. The business aims to make OMR 16625 profit during the forthcoming year. How much sales (OMR) required to achieve this target profit? Select one: a. OMR 60000 b. OMR 44000 c. OMR 48700 d. OMR 55000
- A manufacturer has a monthly fixed cost of $87,500 and a production cost of $15 for each unit produced. The product sells for $20/unit. (a) What is the cost function? CX) (b) What is the revenue function? R(x) - (c) What is the profit function? Px) - (d) Compute the profit (loss) corresponding to production levels of 15,000 and 20,000 units. (Input a negative value to indicate a loss) PL1S,000)- P(20,000) =Adams Enterprises produces a product with fixed costs of $49,900 and variable cost of $2.70 per unit. The company desires to earn a $26,000 profit and believes it can sell 11,000 units of the product. Required a. Based on this information, determine the target sales price. Note: Round your answer to 2 decimal places. Target sales price per unitSuppose that a manufacturer can produce a part for $11.00 with a fixed cost of $7,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $13.00, which includes transportation. a. If the anticipated production volume is 1,300 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $.
- Stud making bottling machines valued at P80,000 with sales price with P144,000, where it includes fees for installation valued P20,000. FV costs =P128,000. Process of installation is time consming and generally takes three months. Find price of transaction which was allocated to bottling machine and installation?Glover Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of $70,000. Glover desires a profit equal to a 12% rate of return on assets. Assets of $785,000 are devoted to producing Product B, and 100,000 units are expected to be produced and sold. a. Compute the markup percentage using the total cost concept.fill in the blank 1 % b. Compute the selling price of Product B. Round your answer to two decimal places.$fill in the blank 2The fixed costs for the current year are Rs. 100,000. The estimated sales for the period are valued at Rs. 240,000. The variable cost per unit for the single product made is Rs. 8. If each unit sells at RS.30. and the number of units involved coincides with the expected volume of output, construct the Breakeven Chart by using scale paper then : (i) Determine the breakeven point. (ii) Find out above how many units, the company should produce to seek profit. (iii) Determine the profit earned at a turnover of Rs. 170,000. (iv) Find the margin of safety. (v) Calculate the angle of incidence.
- Solemnity Company produces a product that sells for P60. The variablemanufacturing costs are P30 per unit. The fixed manufacturing cost is P10 perunit based on the current level of activity, and fixed selling and administrativecosts are P8 per unit. A selling commission of 10% of the selling price is paid on each unit sold. The contribution margin per unit is: A. P24.B. P36.C. P30.D. P54ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…