Blanchard Company manufactures a single product that sells for $136 per unit and whose total variable costs are $102 per unit. Thecompany's annual fixed costs are $496,400. Management targets an annual pretax income of $850,000. Assume that fixed costsremain at $496,400.(1) Compute the unit sales to earn the target income.Choose Numerator:Fixed costs plus pretax incomeChoose Denominator:=Units to Achieve TargetContribution margin per unit=Units to achieve target0(2) Compute the dollar sales to earn the target income.Choose Numerator:Fixed costs plus pretax incomeChoose Denominator:Dollars to Achieve Target1Contribution margin ratio=Dollars to achieve target0

Contribution means the difference between the selling price and variable cost. Break even point…

Answered: Blanchard Company manufactures a single…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PA: Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model...

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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
Manatoah Manufacturing produces 3 models of window air conditioners: model 101, model 201, and model 301. The sales price and variable costs for these three models are as follows: The current product mix is 4:3:2. The three models share total fixed costs of $430,000. Calculate the sales price per composite unit. What is the contribution margin per composite unit? Calculate Manatoahs break-even point in both dollars and units. Using an income statement format, prove that this is the break-even point.
Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Baxter Company has a relevant range of production between 15,000 and 30,000 units. The following cost data represents average variable costs per unit for 25,000 units of production. Using the costs data from Rose Company, answer the following questions: A. If 15,000 units are produced, what is the variable cost per unit? B. If 28,000 units are produced, what is the variable cost per unit? C. If 21,000 units are produced, what are the total variable costs? D. If 29,000 units are produced, what are the total variable costs? E. If 17,000 units are produced, what are the total manufacturing overhead costs incurred? F. If 23,000 units are produced, what are the total manufacturing overhead costs incurred? G. If 30,000 units are produced, what are the per unit manufacturing overhead costs incurred? H. If 15,000 units are produced, what are the per unit manufacturing overhead costs incurred?
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $126 per unit. The company's annual fixed costs are $842,400. Management targets an annual pretax income of $1,350,000. Assume that fixed costs remain at $842,400. (1) Compute the unit sales to earn the target income. Choose Numerator: Choose Denominator: Units to Achieve Target Units to achieve target %3D (2) Compute the dollar sales to earn the target income. Choose Numerator: Choose Denominator: Dollars to Achieve Target Dollars to achieve target %3D
Sunn Company manufactures a single product that sells for $110 per unit and whose variable costs are $88 per unit. The company's annual fixed costs are $308,000. Management targets an annual income of $550,000. (1) Compute the unit sales to earn the target income. Numerator: Denominator: (2) Compute the dollar sales to earn the target income. Numerator: Denominator: = = = = Units to Achieve Target Units to achieve target Dollars to Achieve Target Dollars to achieve target
Sunn Company manufactures a single product that sells for $180 per unit and whose variable costs are $135 per unit. The company's annual fixed costs are $562,500. Management targets an annual income of $1,012,500. (1) Compute the unit sales to earn the target income. Numerator: Denominator: Units to Achieve Target = Units to achieve target (2) Compute the dollar sales to earn the target income. Numerator: Denominator: Dollars to Achieve Target = Dollars to achieve target Ch
Blanchard Company manufactures a single product that sells for $180 per unit and whose total variable costs are $135 per unit. The company’s annual fixed costs are $562,500. Management targets an annual pretax income of $1,012,500. Assume that fixed costs remain at $562,500. Compute the (1) unit sales to earn the target income and (2) dollar sales to earn the target income.
ABC Company sells 10,300 units at OMR 10 per unit. Variable costs are OMR 7.5 per unit, and total fixed costs are OMR 12,500. Requirements: Calculate the following using the CM method: (a) the contribution margin ratio (b) income from operations.
The following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GH¢40 and total fixed cost of GH¢300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity?
Blanchard Company manufactures a single product that sells for $220 per unit and whose total variable costs are $154 per unit. The company's annual fixed costs are $930,600. (a) Compute the company's contribution margin per unit. Contribution margin (b) Compute the company's contribution margin ratio. Choose Numerator: Choose Denominator: Contribution Margin Ratio Contribution margin ratio = (c) Compute the company's break-even point in units. Choose Numerator: Choose Denominator: Break-Even Units Break-even units (d) Compute the company's break-even point in dollars of sales. Choose Numerator: Choose Denominator: Break-Even Dollars Break-even dollars =
Sierra Company produces its product at a total cost of $120 per unit. Of this amount, $40 per unit is selling and administrative costs. The total variable cost is $96 per unit, and the desired profit is $24.00 per unit. Determine the markup percentage using the (a) total cost, (b) product cost, and (c) variable cost methods. Round your answers to one decimal place. a. Total cost b. Product cost c. Variable cost % % %

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