Gordon Corporation produced 10,000 digital watchnes In the current year. Variable costs are $8 per watch. Overhead wged is $2.25 pen wih.Ags e $9.50 each. Gordon's production manager reports the Incremental overhead Is $1.25 per vNatch. Gordon should Multiple Cholce Buy the watches as they would save $0.75 per watch. Continue making the watches as an additional $0.25 per watch would be incurred If bought from the supplier. Buy the watches as they would save $1.50 per watch. Buy the watches as they would save $1.75 per watch. Continue making the watches as an additional $1.50 per watch would be incurred if bought from the supplier.

Reubens Deli currently makes rolls for deli sandwiches it produces. It uses 30,000 rolls annually in the production of deli sandwiches. The costs to make the rolls are: A potential supplier has offered to sell Reuben the rolls for $0.90 each. If the rolls are purchased, 30% of the fixed overhead could be avoided, If Reuben accepts the offer, what will the effect on profit be?

Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.

Country Diner currently makes cookies for its boxed lunches. It uses 40,000 cookies annually in the production of the boxed lunches. The costs to make the cookies are: A potential supplier has offered to sell Country Diner the cookies for $0.85 each. If the cookies are purchased, 10% of the fixed overhead could be avoided. If Jason accepts the offer, what will the effect on profit be?

Gordon Corporation produced 10,000 digital watches in the current year. Variable costs are $8 per watch. Overhead assigned is $2.25 per watch. A supplier offers the watches for $9.50 each. Gordon's production manager reports the incremental overhead is $1.25 per watch. Gordon should: a.Continue making the watches as an additional $1.50 per watch would be incurred if bought from the supplier. b.Buy the watches as they would save $0.75 per watch. c.Buy the watches as they would save $1.50 per watch. d.Buy the watches as they would save $1.75 per watch. e.Continue making the watches as an additional $0.25 per watch would be incurred if bought from the supplier.

Garcia Co. sells snowboards. Each snowboard requires direct materials of $105, direct labor of $35, and variable overhead of $50. The company expects fixed overhead costs of $645,000 and fixed selling and administrative costs of $111,000 for the next year. It expects to produce and sell 10,500 snowboards in the next year. What will be the selling price per unit if Garcia uses a markup of 15% of total cost? (Round your answer to 2 decimal places.)    Selling Price  _____________  Per Unit

Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 170 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products are shown in the following table, which Slavin managers use for planning purposes.     Alpha Delta Total Price $ 125   $ 155         Less variable costs per unit                   Material   17     32         Labor   23     35         Overhead   14     14         Contribution margin per unit $ 71   $ 74         Fixed costs                   Manufacturing             $ 7,400   Marketing and administrative             $ 4,400                 $ 11,800   Machine hours per unit   2.0     2.5         Machine hours used               495   Machine hours available               500   Quantity produced   110…

Paney Company makes and sells calendars. The information on the cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 The fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. The price per calendar is $10. How many calendars must Paney sell next year to earn an operating income of $24,600? Paney Company makes and sells calendars. The information on the cost per unit is as follows: Direct materials $1.50 Direct labor 1.20 Variable overhead 0.90 Variable marketing expense 0.40 The fixed marketing expense totaled $13,000, and the fixed administrative expense totaled $35,000. The price per calendar is $10. What is the variable product expense per unit? a.$1.30 b.$3.60 c.$5.00 d.$4.60 e.$4.00

Excellent Manufacturers Inc. has a current production level of​ 20,000 units per month. Unit costs at this level​ are:   Direct materials ​$0.26   Direct labor 0.40   Variable overhead 0.16   Fixed overhead 0.21   Marketing − fixed 0.25   ​Marketing/distribution − variable 0.42     Current monthly sales are​ 18,000 units. Jax Company has contacted Excellent about purchasing​ 1,550 units at​ $2.00 each. Current sales would NOT be affected by the one−time−only special​ order, and variable​ marketing/distribution costs would NOT be incurred on the special order. What is Ratzlaff​ Company's change in operating profits if the special order is​ accepted?

Stones Manufacturing sells a marble slab for $1,100. Fixed costs are $34,000, while the variable costs are $500 per slab. The company currently plans to sell 240 slabs this month. What is the margin of safety assuming 80 slabs are actually sold? (Round all unit calculations UP to the nearest whole number.) A) $201,300 B) $81,300 C) $25,300 D) $34,000