McDonald Inc. sells two products: a regular and a deluxe version. The owner, lain,would like to better understand the impact of the sales mix on the company's sales.The following information is available:Sales price per unitVariable cost per unitRegular$45$27Deluxe$80$32The company has total fixed costs of $540,000 for the year and they sell 3 Regularproducts for every 2 Deluxe products.lain would like to know, given the sales mix, how many units of each product thecompany must sell per year to break even.The company must sellwwwunits of the Regular product.Enter the number of units given the current sales mix.units of the Deluxe product.The company must sellEnter the number of units given the current sales mix.

BREAKEVEN POINTBreak Even means the volume of production or sales where there is no profit or loss.…

Answered: McDonald Inc. sells two products: a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Presidio, Incorporated, produces one model of mountain bike. Partial information for the company follows Required: 1. Complete Presidio's cost data table. 2. Calculate Presidio's contribution margin ratio and its total contribution margin at each sales level indicated in the cost data table assuming the company sells each bike for $630 3. Calculate net operating income (loss) at each of the sales levels assuming a sales price of $630 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Complete Presidio's cost data table. Note: Round your Cost per Unit answers to 2 decimal places.) Bikes Produced and Sold 740 Units 8.30 Units 1,938 Units Total costs Variable costs $ 185.000 Fixed costs per year Total costs $ 185,000 $ $ 0 Cost per unit Variable cost per unit Fixed cost per unit Total cost per unit $ 000 $ 544.00 $ 0.00 Required Required 2>
How would I find the effect on the total cost
Diamond Boot Factory normally sells its specialty boots for $30 a pair. An offer to buy 85 boots for $25 per pair was made by an organization hosting a national event in Norfolk. The variable cost per boot is $12, and special stitching will add another $2 per pair to the cost. Determine the differential income or loss per pair of boots from selling to the organization. Should Diamond Boot Factory accept or reject the special offer?
Calculate the combined total net income if the company accepts the offer to sell additional units at the reduced price of $78.30 per unit. Determine whether management should accept or reject the new business.
Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn set from an outside vendor for $30 per set. Modern Furniture’s chief operations officer wants an analysis of the comparative costs of manufacturing these cushions to determine whether bringing the manufacturing in-house would save the firm money. Additional information shows that if Modern furniture’s were to manufacture the cushions, the materials cost would be $16 and the labor cost would be $10 per set and that it would have to purchase cutting and sewing equipment, which would add $25,000 to annual fixed costs. NOTE: No need to enter comma between numbers Required Computation for 10,000 units What amount should have been inccrued if company produce 10,000 units What amount should have been inccrued if company purhcase 10,000 units from outside What amount company save if company make 10,000 cushions
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $10,660. The booth will be open 26 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $103 per package. Ms. Ortega believes that the salesperson will spend approximately 16 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 73 units of EZRecords and 59 units of ProOffice.
MORPHLING CORP. is engaged in producing and selling 2 types of furniture, DELUXE and SUPREME. The two products are sold in a ratio of 2 units of DELUXE to 3 units of SUPREME. Data concerning these products are as follows: DELUXE P12 SUPREME P28 Selling Price Unit Variable Cost 3 16 MORPHLING CORP. has a total fixed cost of P600,000 per year and faces a tax rate of 30%. Compute the volume of sales in units of DELUXE if the company plans to earn 10 percent on sales revenue in before-tax income. a. 27,778 units b. 41,667 units 50,000 units d. 32,143 units c. TIDE HUNTER CORP. is engaged in producing and selling a top-of-the line pencil holder with a selling price of P50.00 per unit. For its first month of operations, 4,000 units were produced and 3,200 units were sold. Actual fixed costs are the same as the amount budgeted for the month. TIDE HUNTER uses a normal activity of 5,000 units. Other information for the month includes: Variable cost per unt Eixed costs in total P40,000 per month…
s
Columbus Inc. sells a high end hair dryer in a super competitive marketplace. As a result, market research and competitive pressures influence the determination of their selling price. Their marketing department has done a comprehensive analysis and It looks like a price of $61 would be appropriate given the present business environment. The company has a goal of earning $30 on each unit. What is the target unit cost of each hair dryer? Enter your answers without dollar signs or commas. ASUS 13 f4 E3 X 19 OLF 11 (12 3. & 4. 5 7. 8. E T. Y. F G H K t6 立
Easy Solutions limited manufactures electronic calculators. One of its top-selling calculators has a price of $50. Recently, a competitor entered the market and started offering a similar calculator at a price that is 20% below the $50 price of Easy Solutions. Company policy requires Easy Solutions to have a profit margin equal to 30% on sales of each of its products. 1.What target cost would have to be set for the Easy Solutions calculator to remain competitive and still meet the target profit margin of the company? 2.
Describe the advantages and disadvantages of each type of sales alternative.
Alberto Technologies, manufacture and sells an electronic control device for $297. It has costs of $231 to manufacture it. A competitor is bringing a new electronic control device to market that will sell for $253. Marketing manager at Alberto believes it must lower the price to $253 to compete in the market for electronic control device. Marketing manager believes that the new price will cause sales to increase by 12%, even with a new competitor in the market. Alberto's sales are currently 6,000 units per year. What is the target cost per unit if the target operating income is 25% of sales

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