Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2.600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) O a. 60 ОБ. 30 Oc 38 O d. 54 Oe. None of the given answers

Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $1,000 and the total manufacturing overhead cost is $1,220, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2.600, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) O a. 60 ОБ. 30 Oc 38 O d. 54 Oe. None of the given answers

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Description: O d. Establishing goalsAlmuO e. Choosing among alternatives128Company XYZ is currently producing and selling 100 units. At this level, the total direct materials costis $500, the total direct labor cost is $1,000 and the total manufacturing overhead

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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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.
Olivian Company wants to earn 420,000 in net (after-tax) income next year. Its product is priced at 275 per unit. Product costs include: Variable selling expense is 14 per unit; fixed selling and administrative expense totals 290,000. Olivian has a tax rate of 40 percent. Required: 1. Calculate the before-tax profit needed to achieve an after-tax target of 420,000. 2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. (Round to the nearest unit.) 3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. 4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a 420,000 target net income be higher or lower than the units calculated in Requirement 3? Calculate the number of units needed at the new tax rate. (Round dollar amounts to the nearest dollar and unit amounts to the nearest unit.)
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Please solve this MCQs Dake Corporation's relevant range of activity is 4900 units to 5500 units. When it produces and sells 5200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.70 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 1.00 Fixed administrative expense $ 0.70 Sales commissions $ 0.80 Variable administrative expense $ 0.70 If 4200 units are produced, the total amount of indirect manufacturing cost incurred is closest to: $15,600 $8820 $21,420 $24,420
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Question Company XYZ is currently producing and selling 100 units. At this level, the total direct materials cost is $500, the total direct labor cost is $600 and the total manufacturing overhead cost is $1,200, which includes $800 fixed manufacturing overhead cost. The company's total selling and administrative expenses are $2,500, which include $1,500 fixed selling and administrative costs. Assume that the company wishes to increase the number of units produced and sold to 102 units, what would be the incremental cost? (rounded to nearest ($) value) Not yet answered Marked out of 0.80 P Flag question O a. 30 O b. 25 O c. 50 O d. None of the given answers O e. 46
A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells 12,000 units, its unit costs are as follows: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Fixed selling expense Fixed administrative expense Sales commissions Variable administrative expense rev: 02_24_2021_QC_CS254950 If 11,600 units are produced, what is the total amount of indirect manufacturing costs incurred to support this level of production? Multiple Choice O $92,800 O $75,400 Amount per Unit $ 7.00 $4.00 $ 1.50 $77,400 $5.00 $ 3.50 $ 2.00 $ 1.00 $ 0.50
Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 70,000 table fans in the coming year. Product price and cost information includes: Ceiling Fan Table Fan Price $56 $17 Unit variable cost $13 $8 Direct fixed cost $21,200 $43,000 Common fixed selling and administrative expenses total $98,000. Required: Question Content Area 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = ___________ : ______________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans _______ Break-even table fans ______ 3. Prepare a contribution-margin-based income…
es Alpena Corporation manufactures smartphone and tablet cases. The following is the cost of each unit. $ 7.35 2.95 0.95 11.70 $ 22.95 Mc Graw Hill ! 1 Materials Labor Variable overhead Fixed overhead ($1,755,000 per year; 150,000 units per year) Total Decatur Devices has approached Alpena with an offer to buy 3,000 cases at a price of $17.80 each for its new specialty tablet designed for health care workers. The regular price of an Alpena case is $26.50. Alpena has the total capacity to produce 180,000 units without increasing its fixed overhead. Decatur Devices requires that each case use its branding, which requires a more expensive embossing step. This will result in an additional $2.85 per case labor cost. The material cost of of the Decatur case will be the same as for the current models. The Decatur order will also require a one-time rental of embossing equipment for $6,549. Q A Required: a. Prepare a schedule to show the impact of filling the Decatur Devices order on Alpena's…