oit Manufacturing Company manufactures and sells parts fe mation to a single part which is used in the production of erating Income of S220,000 in 2019, when production was 3,000 ssure from shareholders to increase operating income in lementation of strategies mainly geared at increasing revenues able cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material Direct Labour Variable Manufactu Fixed expenses: Fixed Manufacturing Over Fixed Selling Costs Fixed Administrative Costs
Q: Operating Income of $220,000 in 2019, when production was 3,000 units Variable expenses per…
A: The variable cost of a product is the cost which changes with change in the production level.…
Q: Benoit Manufacturing Company manufactures ar nformation to a single part which is used in the…
A: Since you have asked multiple question, as per Bartley by guidelines we have provided a specific…
Q: Computing breakeven sales and operating income or loss under different conditions Gilbert’s Steel…
A: Break-even Point: It refers to a point in the level of operations at which a company experiences its…
Q: Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.
A: Variable costs are those costs which change with the level of production or activity. The variable…
Q: After considering all factors, should you inform your manager about the omission made or simply keep…
A: Business Ethics: It is a form of professional ethics that stresses on the moral obligations of an…
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A: To determine the financial advantage or disadvantage of discontinuing B product line we need to…
Q: The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: pany manufactures and sels musical gadgets The businesss earned Income of $220.000 in 2018, when…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: Hudson Co. reports the contribution margin income statement for 2019 below. Contribution Margin…
A: The contribution margin can be stated on a gross or per-unit basis. It represents the incremental…
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A:
Q: Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set…
A: Total Variable cost per unit = Direct material + Direct labour + Manufacturing overheads + Sales…
Q: Kenmore Company manufactures two products. Both products have the same sales price, and the volume…
A: (10). Expected decrease in revenue ($75,000) Expected decrease in total variable costs 64,250…
Q: Leo Corporation has the following data for 2021: Per unit variable: Direct material P50 Direct labor…
A: Answer: Concept: =Sales- Variable cost- Fixed cost= Net income
Q: ould your error affect breakeven sales, margin of safety and operating income under the proposed…
A:
Q: ASTRO COMPANY Contribution Margin Income Statement For Year Ended December 31, 2015 Sales…
A: Target profit = $200,000 Fixed cost = $250,000 Variable cost {2015} = $ 800000 ~ 80% of sales…
Q: Paty Ltd operating business of containers and it is contemplating two cost structures for its…
A: Break-even point (BEP): Break-even point= Fixed cost /Contribution margin per unit Desired…
Q: Aldean Company wants to use absorption cost-plus pricing to set the selling price on a new product.…
A: Required return = Operating assets x ROI = 180000*18% = $32,400 Fixed manufacturing overhead per…
Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…
A: Formula: Differential cost = ( Current purchasing price - Cost excluding fixed cost ) x Units…
Q: Markham Farms reports the following contribution margin income statement data for the month of…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: quired information following information applies to the questions layed below.] o Company sold…
A:
Q: Olinde Electronics Inc. producesstereo components that sell at P= $100 per unit. Olinde’s fixed…
A:
Q: Brother Company sells its products for $66 each. The current production level is 25,000 units. Only…
A: The company sells the product for $ 66 per unit. Current Production = 25000 units Sales = 20000…
Q: Valencia Manufacturing Company manufactures and sells musical gadgets. The business earned is under…
A: D) Margin of safety (units) = Actual sold units - Break even point units =6000-4000 units =2000…
Q: Bandoy Company produced 100,000 units of product and sol 75,000 units at P3.0 per unit in 2018.…
A: Formula: Contribution= Sales- Variable Cost Net Income= Contribution- Fixed Cost
Q: Clemente Inc. incurs the following costs to produce 10,000 units of a subcomponent: Direct…
A: MAKE OR BUY DECISION INVOLVES WHETHER TO MANUFACTURE A PRODUCT IN - HOUSE OR TO PURCHASE IT FROM A…
Q: Blanchard Company manufactures a single product that sells for $120 per unit and whose total…
A: Contribution margin per unit = Selling price - Variable costs Contribution margin per unit = $120 -…
Q: The Bat Division of World Baseball Berhad has just revised its actual cost data for 2020. Bat…
A: a) Calculation of the lowest price is shown as below: Formulation Therefore, the lowest price…
Q: Benoit Manufacturing Company manufactures and sell: information to a single part which is used in…
A: (g). Break Even Point In easy words, the break-even purpose are often outlined as a point wherever…
Q: he welcome company sells its single product. The company’s sales and expenses for the recent period…
A: The MOS is the difference of actual sales over the break-even sales unit. Break-even sales are the…
Q: C.V.P.Analysis Darius Manufacturing Company manufactures and sells parts for various musical…
A: Break even point shows the point where company will be in no loss and gain position. The total…
Q: Sage Company is operating at 90% of capacity and is currently purchasir a part used in its…
A: Differential costs is the difference between costs of two alternatives. Costs and revenues should be…
Q: Benjamin Company had the following results of operations for the past year: Sales (17,600 units at…
A: In order to determine the contribution margin per unit, the variable cost per units are required to…
Q: Brevard Industries produces two products. Information about the products is as follows: Units…
A: The decision for dropping a product line decreases the variable cost and traceable fixed cost but…
Q: The Variable Cost of Goods Sold in the Marin Company totals P325,000. Fixed selling and…
A: In this question we are asked to find out the sales and this is of revenue nature question. Sales…
Q: Vaughn Manufacturing incurs the following costs to produce 10,400 units of a subcomponent: Cost…
A: Solution Production- Direct material 8736 Direct labor 11752 Variable overhead 13104…
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A: Company manufactures 2 products A and B that has common fixed expenses 15€ and 10€ respectively.…
Q: a)Using the equation method, calculate the number of units sold in 2018? b) How would your error…
A: Requirement 1: Compute the number of units sold.
Q: Agta Enterprises manufactures a product that sells for R180 each. The company presently produces…
A: Sales units needed for desired profit is how many units to be sold in order to cover fixed costs,…
Q: Stryker Industries received an offer from an exporter for 30,000 units of product at $19 per unit.…
A: Income per unit from acceptance of offer = Selling price per unit - Variable cost per unit = $19 -…
Q: XY Company manufactures and sells LCD monitor at P5000 each. The production officer reported the…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…
A: Sage company is operating at 90% of capacity Currently, a part is purchasing which is used in…
Q: The Audino Division of Berg Company makes and sells only one product. Annual data on the Audino…
A: Sales Revenue (25,000 Units * P250) P62,50,000 Less: variable cost (25,000 Units * P200)…
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A:
Q: Required information (The following information applies to the questions displayed below] Astro…
A: New variable cost per unit = $32 x 60% = $19.2 New total fixed cost = $82,400 + $149,000 = $231,400…
Q: Diamond Company has three product lines, A, B, and C. The following financial information is…
A: The effect can be measured as the difference between contribution margin and avoidable cost.
Q: Blanchard Company manufactures a single product that sells for $180 per unit and whose total…
A: Contribution Margin = contribution margin approach is a shortcut method which is used for computing…
Q: Silver River Company sells Products S and T and has made the following estimates for the coming…
A: Step 1: Compute the weighted average contribution margin per unit: Weighted average contribution…
Q: A few days after, you realized that you made an error in the CVP analysis, as the sales personnel’s…
A: Requirement 1: Compute the number of units sold.
Q: Company A manufactures two products A and B that sells for 120 € and 80 € respectively. Each product…
A: In the case of multiple products, whenever there is a limiting factor, contribution per limiting…
Step by step
Solved in 5 steps
- Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earnedOperating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000Required:a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution marginincome statement for the…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earnedOperating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 f) Assume that as a result of reorganizing the production process, the management of BenoitManufacturing was able to reduce direct material cost per unit by $5 due to a change in the supplier ofthe raw material…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earnedOperating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 Required:d) Calculate the margin of safety in units and in sales dollars. e) The President of Benoit is under pressure from shareholders to increase operating income by 50% in2020. Management expects per unit…
- B' Manufacturing Company manufactures and sells parts for various musical gadgets. The followinginformation to a single part which is used in the production of a wind instrument. The business earned operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is underpressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material --$58Direct Labour-- $74Variable Manufacturing Overhead --$48Fixed expenses: Fixed Manufacturing Overhead --$215,000Fixed Selling Costs-- $65,000Fixed Administrative Costs -- $160,000Required:1) Compute the selling price per unit in 2019, using the equation method. 2) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution margin income…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for variable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 Required:a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering theimplementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for variable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 e) The President of Benoit is under pressure from shareholders to increase operating income by 50% in 2020. Management expects per…
- Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000Required:d) Calculate the margin of safety in units and in sales dollars. e) The President of Benoit is under pressure from shareholders to increase operating income by 50% in 2020. Management expects per unit…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Questions: a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution margin income statement for the year ended December 31, 2019, detailing the components of total fixed costs and clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars. d) Calculate…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows:Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000Required: g) Briefly explain the impact of each of the following scenarios on the break-even point and the margin ofsafety:(i) Increase in sales volume(ii) Increase in total fixed costs(iii) Increase in…
- Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58Direct Labour $74Variable Manufacturing Overhead $48Fixed expenses: Fixed Manufacturing Overhead $215,000Fixed Selling Costs $65,000Fixed Administrative Costs $160,000 Required:a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution margin income statement…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned Operating Income of $220,000 in 2019, when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data forvariable cost per unit and total fixed costs were as follows: Questions: a) Compute the selling price per unit in 2019, using the equation method. b) Given the sales of 3,000 units and the selling price calculated in (a), prepare a contribution margin income statement for the year ended December 31, 2019, detailing the components of total fixed costs and clearly showing contribution and net income. c) Calculate Benoit’s break-even point in units and in sales dollars. d) Calculate…Benoit Manufacturing Company manufactures and sells parts for various musical gadgets. The following information to a single part which is used in the production of a wind instrument. The business earned an Operating Income of $220,000 in 2019 when production was 3,000 units and the president of Darius is under pressure from shareholders to increase operating income in 2020 and is therefore considering the implementation of strategies mainly geared at increasing revenues and or decreasing variable costs. Data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Direct Material $58 Direct Labour $74 Variable Manufacturing Overhead $48 Fixed expenses: Fixed Manufacturing Overhead $215,000 Fixed Selling Costs $65,000 Fixed…