Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35 percent markup on total cost. Based on annual production costs for 12,000 units of product, computations for the sales price per clock follow. Unit-level costs $240,000 Fixed costs Total cost (a) 80,000 Markup (a x 0.35) Total sales (b) 320,000 112,000 $432,000 Sales price per unit (b + 12,000) 36 Required a. Franklin has excess capacity and receives a special order for 5,000 clocks for $24 each. Calculate the contribution margin per unit. Based on this, should Franklin accept the special order? b. Prepare a contribution margin income statement for the special order.

Atlantic Company sells a product with a break-even point of 6,355 sales units. The varlable cost is $75 per unit, and fixed costs are $197,005. Determine the following: a. Unit sales price b. Break-even point in sales units if the company desires a target profit of $44,795 units Previous Next MacBook Air

Giddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent.  The company's monthly fixed expenses are $28,800.   If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue?  (Ignore income taxes.)

Houpe Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling price $ 140 100% Variable expenses 42 30% Contribution margin $ 98 70% Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change?

Sannella Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 220 66 $ 154 Percent of Sales 100% 30% 70% Fixed expenses are $991,000 per month. The company is currently selling 8,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $74,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change?

Seaco Products produced 10,000 gears with the following unit costs: variable manufacturing costs $25, fixed manufacturing overhead $5, variable selling and administrative expenses $3, and fixed selling and administrative expenses $4. The company has a desired ROI per unit of $8 and has invested assets of $405,000. Compute the absorption-cost pricing markup percentage. (Round answer to 2 decimal places (e.g., 25.02).) Absorption-cost pricing markup percentage %

A company has set its initial selling price at $28 per unit.  Its variable manufacturing costs are $10 per unit produced.  Its variable selling and administrative costs are $2 per unit sold.  The company’s fixed manufacturing costs are $300,000 per period and its fixed selling and administrative costs are $150,000 per period.  The company’s target profit is $200,000 per period.   What is the breakeven point in units?       What is the breakeven point in dollars? How many units must be sold to achieve the target profit? If the fixed costs increase by 20%, how many units must be sold to achieve the target profit?

igelow Inc. sells a product for $1,200 per unit. The variable cost is $816 per unit, while fixed costs are $3,120,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $1,232 per unit. a.  Break-even point in sales units  units b.  Break-even point if the selling price were increased to $1,232 per unit

Lin Corporation has a single product whose selling price is $140 per unit and whose variable expense is $70 per unit. The company's monthly fixed expense is $32,250. Required: 1. Calculate the unit sales needed to attain a target profit of $8,000. Note: Do not round intermediate calculations. 2. Calculate the dollar sales needed to attain a target profit of $8,700. Note: Round your intermediate calculations to the nearest whole number.

Zhao Company has fixed costs of $455,600. Its single product sells for $191 per unit, and variable costs are $124 per unit. If the company expects sales of 10,000 units, compute its margin of safety (a) in dollars and (b) as a percent of expected sales. $ a. Margin of safety (in dollar) 611,200 b. Margin of safety (%)