Cigco Co. sells two products, the deluxe model and the standard. The deluxe sells for $40/unit. The standard sells for $20/unit. Sales are projected to be 1,000 units for the deluxe and 3,000 units for the standard. The deluxe model uses 6 oz. of direct material, the standard model uses 4 oz. of direct material. The material costs $.50/oz. The deluxe model takes 1/2 hour of labor to produce, the standard model takes 1/6 hour of labor to produce. The wage rate is $12.00/hour. Total overhead is $32,000, of which $24,000 is fixed. Total selling and

Cigco Co. sells two products, the deluxe model and the standard. The deluxe sells for $40/unit. The standard sells for $20/unit. Sales are projected to be 1,000 units for the deluxe and 3,000 units for the standard. The deluxe model uses 6 oz. of direct material, the standard model uses 4 oz. of direct material. The material costs $.50/oz. The deluxe model takes 1/2 hour of labor to produce, the standard model takes 1/6 hour of labor to produce. The wage rate is $12.00/hour. Total overhead is $32,000, of which $24,000 is fixed. Total selling and

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 6MC: Jansen Crafters has the capacity to produce 50,000 oak shelves per year and is currently selling...

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Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs thebusiness $30 to place a single order.The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. TheEOQ model is appropriate.i) What is the cost minimizing solution for this product each year?ii)Determine the re-order level, minimum inventory level and maximum inventory level for the product.
3. Batman Products Inc. manufactures two items, masks and capes. Each item passes down two assembly lines. Masks take one hour on line I and 3 hours on line II. They sell for $24 each. Capes take 1 hour on line I and. 1 hour on line II. They sell for $4.00 each. Line I is available for 6 hours daily and line II is available for 12 hours daily. What is the maximum revenue from a day's production and how should they achieve it?
1. Cisco Co. sells two products, the deluxe model and the standard. The deluxe sells for $40/unit. The standard sells for $20/unit. Sales are projected to be 1,000 units for the deluxe and 3,000 units for the standard. The deluxe model uses 6 oz. of direct material, the standard model uses 4 oz. of direct material. The material costs $.50/oz. The deluxe model takes 1/2 hour of labor to produce, the standard model takes 1/6 hour of labor to produce. The wage rate is $12.00/hour. Total overhead is $32,000, of which $24,000 is fixed. Total selling and administration costs are $30,000, of which $14,000 is fixed. Prepare a Traditional Income Statement and a Contribution Margin Income Statement. Traditional Income Statement Contribution Margin Income Statement 2.a. How many units of the Deluxe must be sold to break even? 2.b. How many units of the Standard must be sold to break even? - 2.c. What is the Contribution Margin Ratio for the Deluxe model? - 2.d. What is the Contribution Margin…
Pete Corporation produces bags of peanuts. Its fixed cost is $17,300. Each bag sells for $2.62 with a unit cost of $1.82. What is Pete's breakeven point?
Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units.The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year?ii)Determine the re-order level, minimum inventory level and maximum inventory level for the product.
(D) Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost minimizing solution for this product each year? ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
(D) Vallie Enterprise sells a product that cost $200 per unit and has a monthly demand of 500 units. The annual holding cost per unit is calculated as 2% of the unit purchase price. It costs the business $30 to place a single order. The maximum number of units sold for any one week is 150 and minimum sales 80 units. The vendor takes anywhere from 2 to 4 weeks to deliver the merchandise after the order is placed. The EOQ model is appropriate. i) What is the cost-minimizing solution for this product each year?ii) Determine the re-order level, minimum inventory level and maximum inventory level for the product.
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Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 50,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $52 $15 Unit variable cost $12 $9 Direct fixed cost $25,200 $48,000 Common fixed selling and administrative expenses total $78,000.See screenshots
Evercreen manufactures products that sell at $ 37 each. The company can produce 50,000 units per year. The costs of producing and selling the 50,000 units are as follows: Total cost Unit cost Details 800000 16 Direct Material 200000 4 Direct Labor 50000 1 Variable manufacturing costs 150000 3 Fixed manufacturing costs 200000 4 Variable selling expenses 100000 2 Fixed selling expenses 1500000 30 Total cost Required: Assuming that the company is currently producing and selling 50,000 units as mentioned above. HighStar has requested, with its desire to book a one-time special order for 10,000 units, at a price of $ 23 per unit. Note that Evercreen will not bear any variable selling expenses for special orders. If Evercreen accepts Highstar's request, it will have to reduce its regular sales to regular customers by 10,000 units. For financial considerations only, should Evercreen accept this special request or…