Company produces three products with the following information:Selling price per unitVariable cost per unitMachine-hours per unit (MH/unit)Small$17$82Q) What is the maximum monthly rent the "optimal use oftheir own machine)?A) $ProductMedium$19$103Large$26$124Thecompany has a limit of 14,300 machine-hours available per month and a monthly fixed cost of $11,000.The demand for each of the products is 2,500 units per month.The company's goal is to maximize its profitability.Suppose theCompany can rent a machine that will provide an additional 1,360 machine-hours per month.company should be willing to pay for this machine (assuming they've made

Contribution margin per unit=Selling price per unit-Variable cost per unit

Answered: Company produces three products with…

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 2CE

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Dimitri Designs has capacity to produce 30,000 desk chairs per year and is currently selling all 30,000 for $240 each. Country Enterprises has approached Dimitri to buy 800 chairs for $210 each. Dimitris normal variable cost is $165 per chair, including $50 per unit in direct labor per chair. Dimitri can produce the special order on an overtime shift, which means that direct labor would be paid overtime at 150% of the normal pay rate. The annual fixed costs will be unaffected by the special order and the contract will not disrupt any of Dimitris other operations. What will be the impact on profits of accepting the order?
An organization makes and sells three products, F, G, and H. The products are sold in the proportions F: G:H= 2:1:3. The organization’s fixed costs are $80000 per month and details of the products are as follows.Product Selling price $ per unit Variable cost $ per unitF 22 16G 15 12H 19 13The organization wishes to earn a profit of $52000 next month.Required:Calculate the required sales value of each product in order to achieve this target profit.
wrt disk company sells its disk for $107 per unit. total fixed cost are $197000 and variable costs are $32 per unit. calculate the number of units to be sold to earn a pretax income of $224500.
Summer Company sells a product with a contribution margin ratio of 54%. Fixed costs per month are $630. What amount of sales (in dollars) must Summer Company have to earn an operating of $6,400? If each unit sells for $25.00, how many units must be sold to achieve the desired operating income?(Round your answers to two decimal places when needed and use rounded answers for all future calculations and write unit answers in whole units when needed.)
Raven Inc. sells a single product for $50. Variable costs include $29.00 for each unit plus a $7 selling expense per unit. Fixed costs are $276,920 per month. a. What is the contribution margin percentage? Contribution Margin b. What is the break-even sales revenue? Break-Even Sales Revenue c. What sales revenue is needed to achieve a $250,740 per month profit? Total Sales Revenue Needed
Staley Co. manufactures computer monitors. The following is a summary of its basic cost and revenue data: PerUnit Percent Sales price $ 460 100.00 Variable costs 237 51.52 Unit contribution margin $ 223 48.48 Assume that Staley Co. is currently selling 590 computer monitors per month and monthly fixed costs are $79,800.Staley Co.'s margin of safety ratio (MOS%) if 590 units are sold would be (round intermediate calculation up to nearest whole number of units):
White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
The Products 4U Inc. manufactures and sells one product which has the following available information: Description Cost Selling price per unit $27.00 Variable costs per unit: Direct material $9.00 Direct labour $2.30 Manufacturing overhead $1.40 Sales commission $3.80 Total annual fixed costs $100,000 How many units does the company have to sell every year to break even? Rounding Rules: For units, round up to the next whole unit. Examples: If your answer is 11,248.4689 units, enter 11249 If your answer is 11,248.5175 units, enter 11249 If your answer is 11,248.0010 units, enter 11249
Khayyam Company, which sells tents, has provided the following information: Sales price per unit $45 Variable cost per unit 11 Fixed costs per month $12,700 What are the required sales in units for Khayyam to break even? (Round your answer up to the nearest whole unit.)
Company XYZ produces and sells headphones. The company has total fired costs of $112,000. Each headphone sells for $70 per unit and has variable costs of $50 per unit. Next year XY7 Company wishes to eam an operating income that equals 20% of fixed costs. How many units must be sold to achieve this target income level? (rounded to the nearest numben) Select one: O a 1,120 O b. 5,600 Oc 933 O d. 6,720 O e 4480
Sheridan Recreation Products sells the Amazing Foam Frisbee for $19. The variable cost per unit is $6; fixed costs are $26,000 per month. (a) Your Answer Correct Answer Your answer is correct. What is the breakeven point in units? In sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round answers to O decimal places, eg. 5,275) The breakeven point The breakeven sales (b) eTextbook and Media Solution $ eTextbook and Media Save for Later 2000 frisbees 38000 How many frisbees must Sheridan sell to earn $39,000 in monthly operating income? (Round answer to O decimal places, eg. 5,275) frisbees Attempts: unlimited Attempts: unlimited Submit Ar (c) The parts of this question must be completed in order. This part will be available when you complete the part above. (d) The parts of this question must be completed in order. This part will be available when you complete the part above.
WRT Disk company sells its disks for 5107 per unit. Total fixed costs are $197.000 and variablecosts are $32 per unit Calculate the number of units to be sold to earn a pretax income of $224,500.

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