break-even point
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A: Part 1: Answer:The price Corrientes would have to charge per unit on this special order to earn…
Q: Waterway Industries produces a product that requires 2.60 pounds of materials per unit. The…
A: Under standard costing the cost will be estimated at the beginning based on past data on cost. Then…
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A:
Q: Company A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product…
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A: BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or…
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A: Variable costs are those costs which changes along with change in activity level. Contribution…
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A: SPECIAL ORDER Untill There is any Information is Provided, There Shall be no additional Fixed…
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A: The total earnings or revenue that a person, company, or other entity receives before any costs or…
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Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A: Company manufactures 2 products A and B that has common fixed expenses 15€ and 10€ respectively.…
A glass company produces paperweights for export. The paperweights were sold at P125 each which
does not include shipping cost of P20 per paperweights. These paperweights are then marked-up in
Japan of P560 per paperweights. The workers in the factory are paid, on the average, the equivalent
of P420 per day and it is estimated that the average daily output per worker is 70 paperweights. The
cost of the material is estimated at P44 per paperweigh ts. The fixed cost for the operation is P6M a
year. The company operates 288 days a year.
1. What is the break-even point?
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- A manufacturer of a car estimated that the raw materials will have a total cost of ₱400,000. There will be five (5) employees who will work 24 days on a regular eight (8) working hours. Each of them receives a fixed salary of ₱15,000. The POHR based on the total working hours of the employees is ₱200. The cost of the car would be? a. ₱415,200 b. ₱483,000 c. ₱2,800,000 d. ₱667,000Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured In a small plant that relies heavily on direct labor workers. Thus, varlable expenses are high, totaling $15.000 per ball, of which 60% Is direct labor cost Last year, the company sold 62.000 of these balls, with the following results: $ 1,558, 000 930, e00 Sales (62,889 balls) Variable expenses Contribution margin Fixed expenses 620,e00 426,000 $ 194, 000 Net operating income Required: 1. Compute (a) last year's CM ratio and the break-even polnt in balls, and (b) the degree of operating leverage at last year's sales level. 2 Due to an Increase in labor rates, the company estimates that next year's varlable expenses will increase by $3.00 per ball. If this change takes place and the selling price per ball remalns constant at $25.00, what will be next year's CM ratio and the break-even polnt in balls? 3. Refer to the data in (2) above. If the expected change in…In Myanmar, five laborers, each making the equivalent of $3.50 per day, can produce 42 units per day. In China, nine laborers, each making the equivalent of $1.75 per day, can produce 45 units. In Billings, Montana, four laborers, each making $63.00 per day, can make 102 units. Based on labor cost per unit only, the most economical location to produce the item is with a labor cost per unit of $ (Enter your response rounded to two decin China
- Company A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product uses only one type of raw materials that costs 6€ per kilogram. The company has the capacity to annually produce 100000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. Company's average cost per unit for each product at annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labour 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that Company normally produces and sells 40000 units of product B per year. Evaluate, what is the financial advantage…Concord Corporation produces a product that requires 2.60 pounds of materials per unit. The allowance for waste and spoilage per unit is 0.30 pounds and 0.10 pounds, respectively. The purchase price is $2 per pound, but a 2% discount is usually taken. Freight costs are $0.10 per pound, and receiving and handling costs are $0.07 per pound. The hourly wage rate is $13 per hour, but a raise which will average $0.30 will go into effect soon. Payroll taxes are $1.30 per hour, and employee benefits average $2.60 per hour. Standard production time is 1 hour per unit, and the allowance for rest periods and setup is 0.20 hours and 0.10 hours, respectively. The standard direct labor rate per hour is a. $16.90. b. $13.30. c. $17.20. d. $13.00.Easy Problems Corp. produces and sells a single product. The selling price is Php 25.00 and the variable costs is Php 15.00 per unit. The corporation's fixed costs is Php 100,000.00 per month. Average monthly sales is 11,000 units. 1-
- Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product uses only one type of raw materials that costs € 6 per kilogram. The company has the capacity to annually produce 100,000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. The Company's average cost per unit for each product at the annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Assume that the Company expects to produce and sell 90000 units of product B during the current year. A new customer…Pearson Ltd is a manufacturer of high-quality tools. The company produces, besides others, 120 000 units per annum of a certain spare part that is frequently used in the manufacture of various tools. One hundred thousand (100 000) of these spare parts are used internally in the manufacture of tools, and 20 000 are sold to external manufacturers at a price of R15 per unit. The profit made on the sale of the 20 000 units is used to reduce the cost of 100 000 units. The company has been approached by a sales representative of another manufacturing company, offering to provide the company with these spare parts at a price of R13 per unit, provided that at least 100 000 units are purchased per annum.The following information regarding the section manufacturing this spare part has been extracted from the budget for the year ending 30 June 2021. Material @ R1.50 per unit R 180 000Labour @ R30 per hour R 720…oncorde Ltd has been asked to quote a price for an order of 8 units of Product Delta. Making this product will require skilled labour, which is currently in hort supply and is paid £15 an hour. If the order is accepted, all necessary labour will have to be transferred from existing work. As a result, other orders will be lost. It is estimated that for each hour transferred to this contract £45 will be lost (calculated as lost sales revenue £75, less materials £15 and labour 15). The production manager believes that, owing to a learning process, the time taken to make each unit will reduce, from 20 hours to make the first one, by one hour a unit made. (That is 20 hours to make the first one, 19 hours to make the second, 18 hours to make the third one and so on.) What is the total relevant cost of skilled labour for the purposes of the order? The relevant cost for skilled labour will be will be £. ... Time Remaining: 00:43:50 Next
- Company A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product uses only one type of raw materials that costs 6€ per kilogram. The company has the capacity to annually produce 100000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. Company's average cost per unit for each product at annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labour 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate, what contribution margin per kilogram of raw material is earned by product A.Company A manufactures two products A and B that sells for 120€ and 80€ respectively. Each product uses only one type of raw materials that costs 6€ per kilogram. The company has the capacity to annually produce 100000 units of each product. The company considers its traceable fixed mahufacturing overhead to be avoidable and its common fixed expenses are unavoidable and have been allocated to products based on sales in euros. Company's average cost per unit for each product at annual level of activity is provided in the table. Items Product costs in euro A B Direct materials 30 12 Direct labour 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total costs per unit 100 68 (Answer each question independently unless instructed otherwise) Calculate, how many kilograms of raw material are needed to make one unit of product B.The piecework rate in a factory is GH¢2 per unit and the minimum pay is GHC42/day. A bonus of GHC5 is paid in addition to the piecework rate if more than 30 units are made in a day. On Monday, Harry makes 20 units. On Tuesday to Friday he makes 21, 24, 32 and 27 respectively. The Basic amount earned by Harry is OA. GHC210 O B. GHC246 OC. GHC253 D. GHC248
