Ayayai Corporation makes two products, footballs and baseballs. Additional information follows:FootballsBaseballsUnits2,0002,500Sales$48,000$20,000Variable costs19,20011,000Fixed costs8,0004,200Net income$20,800$4,800Yards of leather per unit1.250.30Net income per unit$10.40$1.92Unit contribution margin$14.40$3.60Assume that Ayayai is able to order an additional 2,000 yards of leather and wishes to maximize its net income. Of the additional unitsit produces, at least 400 of each product are necessary for sales.How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to Odecimal places, e.g. 5,275.)

Optimal Production MixFootballs: 400 unitsBaseballs: 400 units + 4600 units = 5000 unitsAsk your…

Answered: Ayayai Corporation makes two products,…

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

Ivanhoe Company makes three models of tasers. Information on the three products is given below. Tingler Shocker Stunner Sales $296,000 $504,000 $200,000 Variable expenses 151,100 203,300 138,600 Contribution margin 144,900 300,700 61,400 Fixed expenses 116,616 228,184 93,900 Net income $28,284 $72,516 $(32,500) Fixed expenses consist of $296,000 of common costs allocated to the three products based on relative sales, as well as direct fixed expenses unique to each model of $29,000 (Tingler), $79,000 (Shocker), and $34,700 (Stunner). The common costs will be incurred regardless of how many models are produced. The direct fixed expenses would be eliminated if that model is phased out.James Watt, an executive with the company, feels the Stunner line should be discontinued to increase the company’s net income.(a)Compute current net income for Ivanhoe Company. Net income $ (b)Compute net income by product line…
Bramble Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Sales $144,000 $60,000 Variable costs 57,600 33,000 Fixed costs 24,000 12,600 Net income $62,400 $14,400 Yards of leather per unit 1.25 0.30 Net income per unit $31.20 $5.76 Unit contribution margin $43.20 $10.80 Assume that Bramble is able to order an additional 4,000 yards of leather and wishes to maximize its net income. Of the additional units it produces, at least 800 of each product are necessary for sales. How many units of each must be produced? (Round contribution margin per yard to 2 decimal places, e.g. 52.75 and final answers to O decimal places, e.g. 5,275.) Units produce Footballs Baseballs
Gallery Corporation makes two products, footballs and baseballs. Additional information follows: Footballs Baseballs Units 2,000 2,500 Sales $60,000 $25,000 Variable costs 24,000 13,750 Fixed costs 10,000 5,250 Net income $26,000 $6,000 Yards of leather per unit 1.25 0.30 Profit per unit $13.00 $2.40 Contribution margin per unit $18.00 $4.50 Assume that Gallery is able to order an additional 2,500 yards of leather and wishes to maximize its income. Of the additional units it produces, at least 500 of each product are necessary for sales.How many units of each must be produced?
Vaughn, Inc. currently manufactures a wicket as its main product. Costs per unit are as follows: Direct materials and direct labor $11 Variable overhead Fixed overhead Total 5 8 $24 Saran Company has contacted Vaughn with an offer to sell it 6400 wickets for $18 each. Of Vaughn's $8 per unit fixed cost. $5 per unit is unavoidable. Should Vaughn make or buy the wickets and why? O Make because the cost savings is $12800 ◇ Buy because the cost savings is $6400 ○ Buy because the cost savings is $19200 ○ Make because the cost savings is $6400
CVP single product; comprehensiveBeantown Baseball Company makes baseballs that sell for $13 per two-pack. Current annual production and sales are 960,000 baseballs. Costs for each baseball are as follows:Direct material$2.00Direct labor1.25Variable overhead0.50Variable selling expenses0.25Total variable cost$4.00Total fixed overhead$1,250,000a. Calculate the unit contribution margin in dollars and the contribution margin ratio for the company.Note: Round percentage to two decimal places (for example, round 32.5555% to 32.56%).Unit contribution margin in dollars $AnswerContribution margin ratio Answer%\\n
Cullumber Company makes 2 products, sleep masks and sleep socks. Additional information follows: Sleep Socks 2,800 $34,000 10,004 Units Sales Variable costs Fixed costs Net income Profit per unit Sleep Masks Sleep Masks 4,300 $69,000 38,986 11,954 $18,060 Sleep Socks $4.20 Compute the Contribution margin per unit. (Round answers to 2 decimal places, e.g. 15.25.) 12,012 $ $11,984 $4.28 Contribution margin per unit
The Regal Cycle Company manufactures three types of bicycles-a dirt bike, a mountain bike, and a racing bike. Data on sales and expenses for the past quarter follow: Dirt Racing Bikes Mountain Total Bikes Bikes Sales Varlable manufacturing and selling expenses $300,000 $90,000 $150,000 $60,000 120,000 27,000 60,000 33,000 ......... Contribution margin.. 180,000 63,000 90,000 27,000 Fxed expenses: Advertising, traceable Depreciation of special equipment Salaries of product-line managers. Allocated common fixed expenses Total foxed expenses.. Net operating income (loss) .. 10,000 6,000 30,000 23,000 36,000 60,000 14,000 9,000 13,000 30,000 6,000 8,000 10,000 12,000 12,000 18,000 148,000 46,000 66,000 36,000 32,000 $17.000 24,000 (0.000) "Allocated on the basis of sales dollars. Management is concerned about the continued losses shown by the racing bikes and wants a recommendation as to whether or not the line should be discontinued. The special equipment used to produce racing bikes has…
Mountain Technical manufactures mountaineering tents. It has fixed costs of $8,280,000. Mountain Technical's unit cost and sales data is shown as follows: Ranier Shasta Whitney Model Model Model Unit sales price $300 $400 $500 Unit variable costs $260 $340 $380 Units sold 48,000 72,000 40,000 What is the weighted-average unit contribution margin? A. $220 B. $57 C. $73 D. $69 Determine the number of units of each model that the company must sell to break even: Group of answer choices A. Ranier - 36,000 units; Shasta - 54,000 units; Whitney –…
The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a production level of 7,800 bats to be $15. If $22,700 of the total costs are fixed, what is the variable cost of producing each bat? O A. $12.09 O B. $15.00 O C. $2.91 O D. $4.15
Sandy Bank, Inc., makes one model of wooden canoe. and, the information for it follows: Number of canoes produced and sold Total costs 450 650 800 Variable costs $ 69,750 $ 468,000 $100,750 $468,000 $124,000 $468,000 Fixed costs $537,750 $568,750 $592,000 Total costs Cost per unit Variable cost per unit Fixed cost per unit $ 155.00 155.00 155.00 720.00 1,040.00 585.00 $ 875.00 Total cost per unit $1,195.00 $ 740.00 Sandy Bank sells its canoes for $375 each. Required: 1. Suppose that Sandy Bank raises its selling price to $500 per canoe. Calculate its new break-even point in units and in sales dollars. 2. If Sandy Bank sells 1,500 canoes, compute its margin of safety in units and as a percentage of sales. (Use the new sales price of $500.) 3. Calculate the number of canoes that Sandy Bank must sell at $500 each to generate $110,000 profit.
Lucido Products markets two computer games: Clalmjumper and Makeover. A contribution format Income statement for a recent month for the two games appears below: Claimjumper $ 116,000 35,800 $ 8e, 200 Makeover $ 58,000 7,700 $ 50, 300 Total $ 174,809 43,5ee 130, see Sales Variable expenses Contribution margin 88,425 $ 42,075 Fixed expenses Net operating income Required: 1. What is the overall contribution margin (CM) ratio for the company? 2 What Is the company's overall break-even polnt in dollar sales? 3. Prepare a contribution format Income statement at the company's break-even polnt that shows the appropriate levels of sales for the two products. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the company's overall break-even point in dollar sales? (Do not round intermediate calculations.) Overall break-even point
Riverside Incorporated makes one model of wooden canoe. Partial information for it follows: Number of Canoes Produced and Sold Total costs Variable costs Fixed costs Total costs: Cost per unit Variable cost per unit. Fixed cost per unit Total cost per unit Unit contribution margin Contribution margin ratio 400 Scenario 1 Raises Sales Price to $760 per Canoe $ 52,000 180,000 $ 232,000 $ 130.00 450.00 $580.00 600 $ 78,000 180,000 $ 258,000 Contribution Margin Income Statement $130.00 300.00 $ 430.00 Riverside sells its canoes for $660 each. Next year Riverside expects to sell 1,000 canoes. Required: Complete the Riverside's contribution margin income statement for each independent scenarlo. Assuming each scenario is of Riverside's original data. Note: Round your unit contribution margin and contribution margin ratio to 2 decimal places (i.e. 0.1234 should be ente 12.34 %) and all other answers to the nearest dollar amount. Scenario 2 Increase Sales Price and Variable Cost per Unit by 10…

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS