Fine Juice Limited manufactures and sells organic juice for special events. Its manufacturing plant has the capacity to produce 17,000 bottles each month; its current monthly production is 15,500 bottles. The company’s regular selling price is $120 per bottle. The following data are provided for the current level of production:   Variable costs: ($)    Direct materials 850,000    Direct labour 475,000    Selling and administrative 17,000 Fixed costs:      Manufacturing

[The following information applies to the questions displayed below.]   John Boyd Corporation manufactures and sells 1,000 tractors each month. The primary component in each tractor is the motor. John Boyd has the monthly capacity to produce 1,300 motors. The variable costs associated with manufacturing each motor are shown below:           Direct materials $ 24   Direct labor $ 16   Variable manufacturing overhead $ 29       Fixed manufacturing overhead per month (for up to 1,300 units of production) averages $27,000. Joan Reid, Inc. has offered to purchase 200 motors from John Boyd per month to be used in its own outboard motors.     If Joan Reid's order is rejected, what will be John Boyd 's average unit cost of manufacturing each motor? Multiple Choice

The machining division of ITA International has a capacity of 2,000 units. Its sales and cost data are: Selling price per unit $75 Variable manufacturing costs per unit 20 Variable selling costs per unit 3 Total fixed manufacturing overhead 175,000 The machining division is currently selling 1,800 units to outside customers, and the assembly division of ITA International wants to purchase 400 units from machining. If the transaction takes place, the variable selling costs per unit on the units transferred to assembly will be $0/unit, and not $3/unit. If the assembly division is currently buying from an outside supplier at $72 per unit, what will be the effect on overall company profits if internal sales for 400 units take place at the optimum transfer price? The company profits would by $

Cullumber Corporation makes a mechanical stuffed alligator. The following information is available for Cullumber Corporation's expected annual volume of 500,000 units: Direct materials Direct labour Variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses Per Unit $16 7 11 6. Total $400,000 180,000 The company has a desired ROI of 30%. It has invested assets of $24,300,000.

The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for camival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below: Variable costs that vary with number of units produced Direct materials $440,000 Direct manufacturing labor 495,000 Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 220 batches * $500 per batch 110,000 ⚫ Fixed Costs Fixed manufacturing costs Fixed marketing costs Total costs 300,000 200,000 $1,545,000 Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company's regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000 pieces). The…

Dinesh Bhai

Timekeeper Corporation has two​ divisions, Distribution and Manufacturing. The​ company's primary product is high−end watches. Each​ division's costs are provided​ below:   ​ Manufacturing: Variable costs per unit​ $1.95   Fixed costs per unit​ $8.17 ​Distribution: Variable costs per unit​ $1.10   Fixed costs per unit​ $1.00   The Distribution Division has been operating at a capacity of​ 4,007,000 units a week and usually purchases​ 2,003,500 units from the Manufacturing Division and​ 2,003,500 units from other suppliers at​ $16.00 per unit.   What is the transfer price per watch from the Manufacturing Division to the Distribution​ Division, assuming the method used to place a value on each watch is​ 160% of variable​ costs? (Round the answer to the nearest​ cent.)         A. ​$14.05   B. ​$3.89   C. ​$1.95   D. ​$3.12

[The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $140 and $100, respectively. Each product uses only one type of raw material that costs $8 per pound. The company has the capacity to annually produce 106,000 units of each product. Its average cost per unit for each product at this level of activity is given below: Direct materials Direct labor Variable manufacturing overhead Traceable fixed manufacturing overhead Variable selling expenses Common fixed expenses Total cost per unit Alpha Beta $ 32 $ 16 24 19 10 20 22 16 12 19 14 $ 121 $ 92 The company's traceable fixed manufacturing overhead is avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Assume Cane normally produces and sells 44,000 Betas per year. What is the financial dvantage (disadvantage) of discontinuing the Beta product line?

The manufacturing plant of Carilla Ltd. specializes in crafting specialized pieces for carnival. With a monthly production capacity of 15,000 pieces, the company currently manufactures and sells 11,000 pieces per month. Typically priced at $200 per piece, the company's cost breakdown for the ongoing production level is outlined below:  Variable costs that vary with number of units produced Direct materials $ 440,000 Direct manufacturing labor 495,000 Variable costs (for setups, materials handling, quality control, etc.) that vary with number of batches, 220 batches * $500 per batch 110,000  Fixed Costs Fixed manufacturing costs 300,000 Fixed marketing costs 200,000 Total costs $1,545,000 Carilla has just received a special one-time-only order for 4,000 pieces at $150 per piece. Accepting the special order would not affect the company’s regular business. Carilla makes pieces for its existing customers in batch sizes of 50 pieces (220 batches 50 pieces per batch = 11,000…

Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball Is manufactured In a small plant that relles heavly on direct labor workers. Thus, varlable expenses are high, totallng $15.00 per ball, of which 60% Is direct labor cost. Last year, the company sold 58,000 of these balls, with the following results: $ 1,450,000 Sales (58,800 balls) variable expenses Contribution margin Fixed expenses 870,000 580,000 374,000 Net operating income 206,000 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 varlable…