Aquatic Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: 7,800 hours @ $20 per hr. Production manager salary: $65,000 Factory rent: $31,200 Equipment maintenance: $13,000 (considered a variable expense) Equipment depreciation: $13,000 Production for the year: 12,000 units Total Revenue: $1,300,000 Total aquariums sold during the period: 15,000 units Operating Income under absorption costing (after non-production expenses): $265,200 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under variable costing? (Round per-unit costs to the nearest cent.) Select one: a. None of these options are correct. b. $292,500 c. $295,737 d. $237,900 e. $234,663

Fantastic Plastics manufactures plastic bottles that are used by other companies for packaging. The have four operating machines in the factory that operate at 80% capacity. One machine can produce 10 000 plastic bottles per month at full capacity. There are four weeks in a month and all bottles are sold in the month of manufacture. Bottles are sold at R5 each. The following costs are incurred on a monthly basis in the manufacturing of plastic bottles. Plastic purchased per week. R8 000. Wages of machine operators R2 000 per week. There are four operators on duty at any time. Monthly salary of factory supervisor R20 000. Deprecation of machines R6 000 per machine per annum.   Water and electricity of R12 000 per month. Must be apportioned according to floor space. (Factory takes up 80% of total floor space).   Q1)Calculate the variable cost per unit manufactured and the fixed cost per month.

Comer Company produces and sells strings of colorful indoor/outdoor lights for holiday display to retailers for $16.13 per string. The variable costs per string are as follows: Direct materials $1.87 Direct labor 1.70 Variable factory overhead 0.57 Variable selling expense 0.42 Fixed manufacturing cost totals $805,272 per year. Administrative cost (all fixed) totals $614,367. Comer expects to sell 253,600 strings of light next year. Required: 1. Calculate the break-even point in units.fill in the blank 1 units 2. Calculate the margin of safety in units.fill in the blank 2 units 3. Calculate the margin of safety in dollars.$fill in the blank 3 4. Conceptual Connection: Suppose Comer actually experiences a price decrease next year while all other costs and the number of units sold remain the same. Would this increase or decrease risk for the company? (Hint: Consider what would happen to the number of break-even units and to the margin of safety.) IncreaseDecrease  Please…

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories.     Amount Per Unit Sales revenue $ 1,170,000 $ 26.00 Costs of fitting produced 900,000 20.00 Gross profit $ 270,000 $ 6.00 Administrative costs 207,000 4.60 Operating profit $ 63,000 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing…

Andy's Water Pets Inc. makes 100-gallon plexiglass aquariums. They reported the following financial information for last year: Direct labor: 12,000 hours @ $20 per hr. Production manager salary: $100,000 Factory rent: $48,000 Equipment maintenance: $20,000 (considered a variable expense) Equipment depreciation: $20,000 Production for the year: 12,000 units $2,000,000 Total Revenue: Total aquariums sold during the period: 15,000 units Operating Income under variable costing (after non-production expenses): $408,000 Assume that the fixed costs were the same on a per-unit basis during the prior period. What would Operating Income be under absorption costing? (Round per-unit costs to the nearest cent.) Select one: a. $366,000 b. $361,020 c. $454,980 d. None of these options are correct. e. $450,000

Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The following information was provided for the coming year.   Poinsettias Fruit Trees Sales $970,000 $3,100,000 Variable cost of goods sold 460,000 1,630,000 Direct fixed overhead 160,000 200,000 A sales commission of 4% of sales is paid for each of the two product lines. Direct fixed selling and administrative expense was estimated to be $146,000 for the poinsettia line and $87,000 for the fruit tree line. Common fixed overhead for the nursery operation was estimated to be $800,000; common selling and administrative expense was estimated to be $450,000. Required: Prepare a segmented income statement for Gorman Nurseries for the coming year, using variable costing. Note: Enter all amounts as positive numbers except operating loss, if applicable.

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?

Jones Products manufactures and sells to wholesalers approximately 400,000 packages per year of underwater markers at $6 per package. Annual costs for the production and sale of this quantity are shown in the table. Direct materials $ 576,000 Direct labor 144,000 Overhead . 320,000 Selling expenses 150,000 Administrative expenses . 100,000 Total costs and expenses $1,290,000 Check Operating income: (1) $1,110,000 (2) $126,000 A new wholesaler has offered to buy 50,000 packages for $5.20 each. These markers would be marketed under the wholesaler’s name and would not affect Jones Products’s sales through its normal channels. A study of the costs of this additional business reveals the following: ∙ Direct materials costs are 100% variable. ∙ Per unit direct labor costs for the additional units would be 50% higher than normal because their production would require overtime pay at 1½ times the usual labor rate. ∙ Twenty-five percent of normal annual overhead costs are fixed at any…

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:         Beginning inventory   0 Units produced   45,000 Units sold   40,000 Selling price per unit $ 81 Selling and administrative expenses:     Variable per unit $ 2 Fixed (per month) $ 561,000 Manufacturing costs:     Direct materials cost per unit $ 15 Direct labor cost per unit $ 9 Variable manufacturing overhead cost per unit $ 2 Fixed manufacturing overhead cost (per month) $ 720,000     Management is anxious to assess the profitability of the new camp cot during the month of May.   Required: 1. Assume that the company uses absorption costing. a. Determine the unit product cost. b. Prepare an income statement for May. 2. Assume that the company uses variable costing. a.…

Rowe Tool and Die (RTD) produces metal fittings as a supplier to various manufacturing firms in the area. The following is the forecasted income statement for the next quarter, which is the typical planning horizon used at RTD. RTD expects to sell 45,000 units during the quarter. RTD carries no inventories.     Amount Per Unit Sales revenue $ 1,170,000 $ 26.00 Costs of fitting produced 900,000 20.00 Gross profit $ 270,000 $ 6.00 Administrative costs 207,000 4.60 Operating profit $ 63,000 $ 1.40 Fixed costs included in this income statement are $292,500 for depreciation on plant and machinery and miscellaneous factory operations and $94,500 for administrative costs. RTD has received a request for 10,000 fittings to be produced in the next quarter from Endicott Manufacturing. Endicott has never purchased from RTD, although they have been a local company for many years. Endicott has offered to pay $20 per unit. RTD can easily produce the 10,000 units with its existing…