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.Requireda. Based on this information, determine the target sales price.Note: Round your answer to 2 decimal places.Target sales priceper unit

Contribution margin is the difference between the sales and the variable cost, or in other words it…

Answered: Adams Enterprises produces a product…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The Weighted Mean2\ If a manufacturer buys 200 units at OMR 5 per unit from one supplier and 500 units at OMR 3 per unit from another, Find the average cost per unit accurately.
If the net operating income is $10,000, the gross margin is $40,000, and the cost of goods sold is $49,500, then the sales must be: Multiple Choice $99,500. $129,000. $89,500. $139,000.
Muscat Gases ,Sultanate of Oman. Market research information suggest that the product should sell at 30,000 units at OMR 280 per unit. The company seeks to make a mark- up of 40% on product cost. Estimate the cost price per unit. a. OMR 200 b. OMR 60 c. OMR 180 d. OMR 210
Subject: accounting
Calculate the net profit before the introduction of Product C. Calculate the net profit if Cullumber Company introduces Product C.
Clockmaker Ltd. makes a product called wallet. Managers from Clockmaker Ltd. want to achieve a profit of £82, 800. The wallet price equals £82 per unit. Each unit of wallet has a cost of £36 and annual total fixed costs equal £147, 200. Considering this information, which of the following statements is true? O a. To achieve the desired profit, Clockmaker Ltd. needs to sell 5, 000 units of wallet. O b. Clockmaker Ltd. would need to sell more than 3, 200 units of wallet to have positive profits. O c. Contribution per unit equals £46. O d. All the answers are true.
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2. vandolf, inc. produces and sells two products: a ceiling fan and a table fan. vandolf plans to sell 30,000 ceiling fans and 70,000 table fan in the coming year. product price and cost information includes: ceiling fan table fan price p 60 p 15 unit variable cost 12 7 direct fixed cost p 23,600 p 45,000 common fixed selling and administrative expenses total p 85,000. required: a. what is the sales mix estimated for next year (calculated to the lowest whole number for each product)? b. using the sales mix from the first requirement, form a package of ceiling fans and table fans. how many ceiling fans and table fans are sold at break-even? c. prepare a contribution-margin based income statement for vandolf,inc., based on the unit sales calculated in requirement in b. d. what if vandolf, inc., wanted to earn operating income equal to p 14,400? calculate the number of ceiling fans and table fans that must be sold to earn this level of operating income. ( hint: remember to form a package…
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Diversity Ltd. produces and sells a product called Star. The company is currently selling 9,560 units of the product which represent £143,400. Total fixed costs equal £66,920 and total contribution equals £66,920. Required: a) Considering this information, is Diversity Ltd. selling a profitable amount of its product Star and which would be your advice for the company? Which is the price per unit at which Diversity Ltd. is selling its product? Explain your answer in detail. b) Consider that, after an increase in the market demand of product Star, Diversity Ltd. sells 25% more units of product Star. In this new situation, is Diversity Ltd. selling a profitable amount of its product Star? Explain your answer in detail. c) Draw a graph related to your previous answers in a) and b). Consider the information from the graph, which would be the financial situation of Diversity Ltd. if sales decrease in more than 25%?

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