LLAP Company manufactures a specialized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs were $319,000, and variable production costs were $375 per unit. Fixed advertising, marketing, and other general and administrative expenses were $150,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost. Q. Compute the breakeven point in units sold assuming LLAP uses the following: a. Variable costing b. Absorption costing (Production = 1,200 boards)

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Estrada Corporation produced 200,000 watches that it sold for $20 each during 2019. The company determined that fixed manufacturing cost per unit was $9 per watch. The company reported a $1,200,000 gross margin on its 2019 financial statements.   Required Determine the variable cost per unit, the total variable cost, and the total contribution margin.

Interchange Inc. had sales of $400,000, based on a unit selling price of $200. The variable cost per unit was $175, and fixed costs were $75,000. The maximum sales within Interchange Inc.’s relevant range are 2,750 units. Interchange Inc. is considering a proposal to spend an additional $32,750 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity.a. Construct a cost-volume-profit chart indicating the break-even sales for last year. Verify your answer, using the break-even equation. b. Using the cost-volume-profit chart prepared in part (1), determine (A) the income from operations for last year and (B) the maximum income from operations that could have been realized during the year. Verify your answers using the mathematical approach to cost-volume-profit analysis. c. Construct a cost-volume-profit chart indicating the break-even sales for the current year, assuming that a noncancellable contract is signed for the additional…

Relling Corporation manufactures a drink bottle, model CL24. During 2017, Relling produced 210,000 bottles at a total cost of $808,500. Kraff Corporation has offered to supply as many bottles as Relling wants at a cost of $3.75 per bottle. Relling anticipates needing 225,000 bottles each year for the next few years. Q. Can Relling use the answer in requirement 1a to determine the cost of manufacturing 225,000 drink bottles? Explain.

KidsPlay, Inc., manufactures and sells table sets. In 2016, it reported the following: Units Produced and sold                                                                                3,000 Operating income per unit ($450,000 ¸ 3,000)                                  $150 Selling price ($1,500 + $150)                                                                     $1,650 Full cost per unit (150 ÷ 0.10)                                                                    $1,500 Variable Costs per unit                                                                                  $600 Markup percentage on variable cost ($1,050 ¸ $600)                   175%   KidsPlay is considering increasing the annual spending on advertising by $200,000. The managers believe that the investment will translate into a 10% increase in unit sales. Should the company make the investment? What is the change in operation income? Group of answer choices a) Yes, $45,000 b) Yes, $115,000 c) Yes,…

Partial-productivity measurement. Gable Company manufactures wallets from fabric. In 2016, Gable made 2,160,000 wallets using 1,600,000 yards of fabric. In 2016, Gable has capacity to make 2,448,000 wallets and incurs a cost of $8,568,000 for this capacity. In 2017, Gable plans to make 2,203,200 wallets, make fabric use more efficient, and reduce capacity. Suppose that in 2017 Gable makes 2,203,200 wallets, uses 1,440,000 yards of fabric, and reduces capacity to 2,295,000 wallets at a cost of $7,803,000.

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