Plz help without plagiarism A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income?Shovels Rakes200,000 250,000$30.00 $20.00Units produced and soldUnit selling priceManufacturing costs:Variable (per unit)Fixed (total)Selling and administrative expenses:Variable (per unit)Fixed (total)$18.00 $9.00$600,000$2.00 $2.00$140,000Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels?Incremental revenue:Revenue forgone on rakesAdditional revenue from shovels priceIncremental revenueIncremental costs:Additional cost of goods soldSavings on rakes not producedSavings on selling and administrativeIncremental costsNet differential cost of producing shovels $$$$0 x0 x0X0 x0 x00

Variable costs are costs which changes along with change in sales level. Fixed costs do not change…

A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income? Shovels Rakes 200,000 250,000 $30.00 $20.00 Units produced and sold Unit selling price Manufacturing costs: Variable (per unit) Fixed (total) Selling and administrative expenses: Variable (per unit) Fixed (total) $18.00 $9.00 $600,000 Incremental revenue Incremental costs: Additional cost of goods sold $2.00 $140,000 Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels? Incremental revenue: Revenue forgone on rakes Additional revenue from shovels price $ $ $2.00 $ 0 x 0 x 0 x

A yard tool manufacturer can produce either metal shovels or rakes. Given the following estimated operating data, use differential analysis to determine which product would result in the highest net income? Shovels Rakes 200,000 250,000 $30.00 $20.00 Units produced and sold Unit selling price Manufacturing costs: Variable (per unit) Fixed (total) Selling and administrative expenses: Variable (per unit) Fixed (total) $18.00 $9.00 $600,000 Incremental revenue Incremental costs: Additional cost of goods sold $2.00 $140,000 Assume the manufacturer currently produces rakes. What are the incremental revenues and costs if the rakes are replaced with shovels? Incremental revenue: Revenue forgone on rakes Additional revenue from shovels price $ $ $2.00 $ 0 x 0 x 0 x

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Fixed cost = 10,000 Material cost per unit = 0.15 Labor cost per unit = 0.10 Revenue per unit = 0.65 Suppose ABC company sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.Give a mathematical model for calculating profit and implement your model from part in Excel. If ABC company makes 12,000 units of the new product, what is the resulting profit? Excel format required other answer for this problem :)
Fixed cost = 10,000 Material cost per unit = 0.15 Labor cost per unit = 0.10 Revenue per unit = 0.65 Suppose ABC company sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue.Give a mathematical model for calculating profit and implement your model from part in Excel. If ABC company makes 12,000 units of the new product, what is the resulting profit? Excel format required
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit ELT $. Total annual fixed manufacturing and operating $576,000 E8 costs Required Determine the following: a. Contribution margin per unit. b. Number of units that Ender must sell to break even. c. Sales level in units that Ender must reach to earn a profit of $180,000. d. Determine the margin of safety in units, sales dollars, and as a percentage. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the margin of safety in units, sales dollars, and as a percentage. (Round "Percentage" answer to 1 decimal place (i.e., 0.234 should be entered as 23.4).) Units Sales Percentage Margin of safety < Req A to C
Given the following cost and activity observations for Leno Enterprises'utilities, use the high-low method to calculate Leno's variable utilities cost permachine hour. Cost Machine HoursSeptember £4,100 22,000October £3,700 18,000November £3,900 19,000December £4,500 28,000a) £0.08b) £4.86c) £0.25d) £12.50
Current Attempt in Progress Pottery Ranch Inc. has been manufacturing its own finials for its curtain rods. The company is currently operating at 100% of capacity, and variable manufacturing overhead is charged to production at the rate of 66% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $4 and $5, respectively. Normal production is 34,300 curtain rods per year. A supplier offers to make a pair of finials at a price of $13.05 per unit. If Pottery Ranch accepts the supplier's offer, all variable manufacturing costs will be eliminated, but the $45,700 of fixed manufacturing overhead currently being charged to the finials will have to be absorbed by other products. (a) Prepare the incremental analysis for the decision to make or buy the finials. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
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.
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $86 per unit, and fixed manufacturing costs are $193,200. Sales are estimated to be 6,900 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 6,900 units and a plan to produce 9,200 units? X b. How much would variable costing operating income differ between the two production plans? ✓
Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set the selling price. The company has provided the following data: Variable cost per unit: Direct material R30 Direct labour R45 Manufacturing overheads R75 Sales commission R15 Selling expenses R23 Total fixed costs Depreciation - factory R27 000 Depreciation - administration R45 000 Rent - factory R31 500 Rent - head office R22 500 Selling and administration cost R60 000 Required: (A) Calculate the selling price if the company adds mark-up of 45% on variable costs.
The equation which reflects a CVP income statement is a. Sales Variable costs - Fixed costs = Net income. b. Sales + Fixed costs = Variable costs + Net income. c. None d. Sales Variable costs + Fixed costs = Net income. e. Sales Cost of goods sold + Operating expenses + Net income. Clear my choice Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80 000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160 000, how many units must be sold to earn income of $80 000? a. 30 000 units b. 1 200 000 units c. 80 000 units d. 120 000 units None Clear my choice A company desires to sell a sufficient quantity of products to earn a profit of $300 000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $600 000, how many units must be sold to earn net income of $300 000? 90 000 units a. b. None c. 67 500 units d. 112 500 units e. 168 750 units Clear my choice
Alpha Company’s Manager is considering selling price for product C.The company is using Absortion Costing in determining the total cost for each product.From the financial perspective, the company is planned to operate with cost:Production Expence Rp 3.000.000.000Administration Expense 200.000.000Marketing Expense 300.000.000The predicted total asset in the beginning year is Rp 4.000.000.000, and the return ofinvestment (ROI) is 25%Determine the mark up percentage for product C in Alpha Company using Cost-PlusPricing Method and Absortion Costing! From the results of the mark up percentage for product C in question above, determinethe selling price per kg using the Cost-Plus Pricing method based on the AbsortionCosting Approach and the company's normal capacity for product C of 1,000,000 kg!
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 4,950 cell phones are as follows: Variable costs per unit: Direct materials Direct labor Factory overhead Selling and administrative expenses Total variable cost per unit $69 32 26 20 Fixed costs: Factory overhead Selling and administrative expenses Voice Com desires a profit equal to a 15% return on invested assets of $600,500. $147 > a. Determine the amount of desired profit from the production and sale of 4,950 cell phones. 90,075 $199,200 68,900 b. Determine the product cost per unit for the production of 4,950 cell phones. Round your answer to the nearest whole dollar. -158 X per unit Total Cost c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. -66 X % Markup Selling price d. Determine the selling price of cell phones. Round your answers to the nearest whole dollar. per unit per unit per unit
Analyzing Income under Absorption and Variable Costing Variable manufacturing costs are $101 per unit, and fixed manufacturing costs are $128,700. Sales are estimated to be 7,800 units. If an amount is zero, enter "0". Round intermediate calculations to the nearest cent and your final answers to the nearest dollar. a. How much would absorption costing operating income differ between a plan to produce 7,800 units and a plan to produce 9,900 units? b. How much would variable costing operating income differ between the two production plans? $ 0