Answer questions 18 and 19 based on the given data: Vicks Inc. Produced and sold 240,000 bags of organic fertilizer as follows: Sales revenue P1,896,000 Fixed costs: Manufacturing margin 1,092,000 Manufacturing P520,000 Contribution Margin 912,000 Selling & administrative 270,000 18. The company's margin of safety in units is closest to: Your answer 19. The company's degree of operating leverage is closest to:
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- subject:accounting ACCT 203 produces and sells lighting fixtures. An entry light has a total cost of $180 per unit, of which $100 is product cost and $80 is selling and administrative expenses. In addition, the total cost of $180 is made up of $110 variable cost and $70 fixed cost. The desired profit is $45 per unit. Determine the markup percentage on product cost.Product cost concept of product pricing Based on the data presented in Exercise 12-15, assume that Willis Products Inc. uses the product cost concept of applying the cost-plus approach to product pricing. a.Determine the total manufacturing costs and the cost amount per unit for the production and sale of 200,000 units. b.Determine the product cost markup percentage per unit. Round to two decimal place. c.Determine the selling price per unit. Round to the nearest dollar.Scent Fragrance Company manufactures and sells several ranges of perfumes. The Average revenue and cost of sales are as follows: Selling price per unit $20.00 Variable costs per unit: Direct materials $4.00 Direct manufacturing labor $1.60 Manufacturing overhead $0.40 Selling costs $2.00 Annual fixed costs $96,000 required: I) Managers may use Sensitivity analysis in their accounting system. ii) What is sensitivity analysis? ii) How is Sensitivity analysis useful to managers?
- A tile manufacturer has supplied the following data: Boxes of tiles produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income a. b. $ $ What is the company's unit contribution margin? $0.86 per unit $2.35 per unit $4.10 per unit $1.75 per unit C. d. 520,000 2,132,000 650,000 $ 464,000 $ 260,000 $ 312,000 $ 446,000A cement manufacturer has supplied the following data: Tons of cement produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income What is the company's unit contribution margin? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $2.00 per unit $0.32 per unit O $4.30 per unit 235,000 $1,010,500 $ 416,000 $ 275,000 $ 54,000 $ 215,000 $ 50,500 $2.30 per unitThe East Company manufactures several different products. Unit costs associated with Product ORD210 are as follows: Direct materials $54Direct manufacturing labor 8Variable manufacturing overhead 11Fixed manufacturing overhead 25 Sales commissions (2% of sales) 5Administrative salaries 12Total$115What are the period costs per unit associated with Product ORD203 ? Oa. $120 b. $50 c. $17© d $18
- A manufacturer of tiling grout has supplied the following data: Kilograms produced and sold Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense Net operating income The company's contribution margin ratio is closest to: Multiple Choice O 74.5% 81.6% 32.2% 50.6%! Required information Use the following information for the Quick Study below. (Algo) [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,600 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. $ 13 per unit $ 15 per unit $6 per unit $ 41,200 per year $2 per unit QS 19-9 (Algo) Computing gross profit under absorption costing LO P2 RAMORT COMPANY Gross Profit (Absorption Costing) $ 65,800 per year $ 69 per unitUse 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.
- Tou Can Do It PRACTICE EXERCISE 3: EVALUATION: The following are data for PPE Limited Company for the year 2020: 650,000 87,000 136,000 104,000 46,000 200,000 P Sales Direct labor cost Raw material purchases Selling expenses Administrative expenses Manufacturing overhead applied to work in process Actual manufacturing overhead costs 226,000 Inventories Raw materials Work in process Finished goods Beginning P8,800 P6,000 P78,000 Ending P11,000 P20,800 P25,900 Required: Write your answer on a separate sheet of paper 1. Assume all raw materials used in production were direct materials, prepare a statement of projected cost of goods manufactured. 2. Prepare projected income statement.The following particulars are extracted from the records of a company. Particulars Product A Product B Sale price per unit |Consumption of material Material cost OMR 100 OMR 240 4 kg 6 kg OMR20 OMR 30 Direct labour cost 30 20 Direct expenses 10 12 Machine hours used 6. 4 Fixed overheads per unit Variable overheads per unit OMR 10 OMR 20 30 40 Direct labour per hour is OMR 10. Comment on the profitability of each product [both use same raw material] when, I] total sales potential in units is limited II] total sales potential in value is limited II] raw material is in short supply IV} production capacity [in terms of machine hours] is limited. Assuming raw material as the key factor, availability of which is 20,000 kg and maximum sales potential of each product being 7000 units, find out the product mix which will yield maximum profits.Please assist in solving (not graded) Practive exercise Please provide details with formulas Business Decision Case. The following total cost data are for the Ralston manufacturing company which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. Direct Materials $1,720,00Direct Labor $ 1,120,000Variable Overhead 560,000Fixed Overheard (N1) 880,000Selling Expense (N2) 720,000Adminstrative Exp. Fixed 200,000------------------------------------ $5,200,000 ------------------------------------------------------------------ Notes1. Beyond nomral capacity, fixed overhead cost increase $30,,000 for each 20,000 units or fraction thereof until a maximum of 640,000 units is reached 2. Selling expense are at 10% sale commission. Ralston pays only one half o the regualr sales commission rates on any sale of 20,000 or more units.…