Q: aime Ltd manufactures and sells a small electric product to order for the computer industry. The…
A: The income statement is prepared to find the net income or losses incurred during the period.
Q: Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn…
A: The companies make their make or buy decisions based on comparative analysis of total costs incurred…
Q: Homerun Corporation produces baseball bats for kids that it sells for $36 each. At capacity, the…
A: Operating income is a bookkeeping value that measures the profit determined from a business, by…
Q: es Company makes flanges for its main product of widgets. The cost of making each widget is as…
A: Solution: Relevant cost of making = Direct material + direct labor + variable overhead = 3.60 + 10…
Q: The Oregano Watch Company manufactures a line of ladies’ watches which are sold through discount…
A: Break-Even Sales is the level of Sales at which the Net Income is Zero OR Total Income equals Total…
Q: A company is planning to manufacture rocking chairs. The fixed cost will be for $40,000. The cost…
A: Formulae: Cost Function:C(x)= FC + V(x)where,C=Total CostFC=Total Fixed CostV=Variable cost per…
Q: Assume that a manufacturer can purchase a needed component from a supplier at a cost of $9.50 per…
A: Make or buy decision needs to be made by the management when an item can either be purchased from…
Q: Your company manufactures bikes that sell for $10,000. Unit variable costs are $6,000 and…
A: Since, target income is never less than fixed cost. We assume that company is earning their target…
Q: How much will profit decrease by?
A: Introduction Contribution is calculated by Deducting Variable Cost from Sales. When Fixed Cost is…
Q: Company XYZ produces and sells wireless earphones. The selling price per unit is $5 and the total…
A: Break-even point is the point at which the entity does not make any profit or loss That is Selling…
Q: A purely competitive firm finds that the market price for its product is $20.00. It has a fixed cost…
A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Maggie Corp. has a selling price of $25 per unit, variable costs of $11 per unit, and fixed costs of…
A: The Break-even point is the point where the company is able to cover all its costs but does not make…
Q: Somerset Computer Company has been purchasing carrying cases for its portable computers at a…
A: Solution a: A differential analysis is based on comparing the relevant cost of making the product…
Q: Answer the following question Required Dowling Computers makes 5,100 units of a circuit board, CB76,…
A: Given Unit require = 5,100 units Relevant Cost = Variable Cost + Avoidable Fixed Cost
Q: Mary Williams, owner of Williams Products, is evaluatingwhether to introduce a new product line.…
A: “Since you have asked multiple questions, we will solve the first three questions for you. If you…
Q: Victory Tire Company makes a special kind of racing tire. Variable costs are $220 per unit, and…
A: Increase (decrease) in operating income = [(New sales price - old sales price) - (New variable cost…
Q: "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer,"…
A: Financial Advantage/(Disadvantage)=Total relevant cost of making-Cost of purchase
Q: As the owner of the small business, you are tasked to determine the right price for your product…
A: As the owner of the small business, you are tasked to determine the right price for your product…
Q: The Weaver Watch Company sells watches for $25, the fixed costs are $140,000, and variable costs are…
A: Contribution per unit = Sales - variable cost Profit/Loss = (no. of units * contribution per unit) -…
Q: Chelonia Ltd manufactures small robot toys. It plans to introduce two products, Speedie and Spunkie.…
A: Step 1 Break even point formula is determined by dividing the total fixed costs associated with…
Q: Waterways has discovered that a small fitting it now manufactures at a cost of $1.00 per unit could…
A: Make cost is the cost to produce the product. Buy cost is the cost of purchasing or buying the…
Q: A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost…
A:
Q: Stan Fawcett’s company is considering producing agear assembly that it now purchases from Salt Lake…
A: Cost is the price paid for a particular product or service.
Q: Sloan Corporation has the following estimates for its new gear assembly product: Price per unit =…
A: There are many factors which effect the profitability of the company. Every company estimates its…
Q: Meg's Manufacturing Company can make 211 units of a component part for variable costs of $159,896…
A: Make Alternative Buy Alternative Difference Buying Cost $0 $1,53,734 -$1,53,734 Variable costs…
Q: Rumba Dance Hall has offered to buy from Muy Bueno Bakery 100 of their chocolate cakes for $25 each.…
A: Differential income is refers to the difference in incomes compared in different alternatives.
Q: Suppose that a manufacturer can produce a part for $9.00 with a fixed cost of $5,000. Alternately,…
A: CVP analysis is considered a decision-making tool that helps management to make strategies and take…
Q: Gwen is the managerial accountant in charge of Company A, which sells water bottles. She previously…
A: In the context of the given question, we are required to compute the break-even point quantity and…
Q: Suppose that Head-First Company now sells both bicycle helmets and motorcycle helmets. The bicycle…
A: Part 1:
Q: How much can Tulip afford to spend on variable cost per unit if production and sales equal 46,000…
A: Variable cost is the total production cost that is affected by the change in the level of output.…
Q: Paradise Manufacturing currently makes one of its parts for a total cost of $3.80 per unit. This…
A: The decision to buy or manufactures depend on the manufacturing cost associated to desired part…
Q: A company believes it can sell 5,800,000 of its proposed new optical mouse at a price of $11.00…
A: The question is based on the concept of Financial analysis.
Q: "In my opinion, we ought to stop making our own drums and accept that outside supplier's offer,"…
A: 1. Determination of financial advantage or disadvantage of buying drums from outside supplier for…
Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $3,000. Alternately,…
A: The manufacturing process is a kind of physical activity that includes the conversion of raw…
Q: Marikina Shoe Manufacturing Company will produce a special-style shoe if the order size is large…
A: The question is related to Marginal Costing. The details are given.
Q: Kent Co. manufactures a product that sells for $50.00 and has variable costs of $24.00 per unit.…
A: Contribution margin = Sales - Variable cost
Q: mpany currently manufactures 52,000 units per year of a key compa er unit, fixed costs related to…
A: Incremental cost refers to the total expenses involved in order to produce an extra unit of a…
Q: Waterways has discovered that a small fitting it now manufactures at a unit cost of $1.00 could be…
A: Working Note: Purchasing Cost = No. of units needed x Purchasing Cost per unit = 465,000 units x…
Q: Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn…
A: Assume that HASF furniture Inc., as described, currently purchases the chair cushions for its lawn…
Q: NUBD Company manufactures a face masks that sells for P10 per unit. This is its sole product and it…
A: Solution: Contribution margin per unit = Fixed costs / Breakeven units = P100,000 / 50000 = P2 per…
Q: SureLock Manufacturing Co. makes and sells several models of locks. The cost records for the ZForce…
A: Operating Income - It is the amount which shows the profit realized from the business operation of…
Q: A company can sell all the units it can produce of either Product A or Product B but not both.…
A: Product A Product B contribution margin PER UNIT $16 $30 divide by: machine hours required per…
Q: Waterways has discovered that a small fitting it now manufactures at a unit cost of $1.00 could be…
A: Opportunity cost refers to that cost which is saved in case one alternative is selected over the…
One company makes watches and delivers them in a wooden case. You buy each case for $ 58. The company is considering manufacturing the cases with a fixed cost of $ 3,360 and a variable cost of $ 46 per case.
a) How many cases must the company manufacture to be at a point of equilibrium?
b) What is the total cost of these kits?
Note: Establish the necessary equations and solve them, take as variable "x" the number of kits and as variable "y" the total cost
Step by step
Solved in 3 steps
- Marikina Shoe Manufacturing Company will produce a special-style shoe if the order size is large enough to provide a reasonable profit. For each special -style order, the company incurs a fixed cost of P20,000 for the production set up. The variable cost is P600 per pair, and each pair sells for P800. a. Let x indicate the number of pairs of shoes produced. Develop a mathematical model for total cost of producing x paiars of shoes. b. Let P indicate the total profit. Develop a mathematical model for the total profit realized from an order for x pairs of shoes. c. How large must the order be for Marikina to breakeven?An industrial firm uses economic analysis to determine which of two different machines to purchase. Each machine is capable. Each machine is capable of performing the same task in a given amount of time. Assume the MARR=8%. Use the following data for analysis:Which, if either of the two machines should the firm choose?Burnem Inc. manufactures thumb drives and sells them to a distributor. Burnem's total cost and total revenue (in dollars) for x thumb drives are given by the following equations. Total cost = 6(x + 4716) and Total revenue = 15x (a) How many thumb drives must Burnem sell to break even? X = thumb drives (b) What is the selling price of each item? $ (c) What are the fixed costs? $ (d) What is the marginal profit per item? $
- A company is planning to manufacture computer desks. The fixed cost will be $60,000 and it will cost $200 to produce each desk. Each desk will be sold for $450. a. Write the cost function, C, of producing x desks. b. Write the revenue function, R, from the sale of x desks. c. Determine the break-even point. Describe what thisa company manufactures computers . The variable cost of producing a computer is 2 TL and the fixed cost is 3TL.The demand equation for this product is p=8-lnx. Here X: shows the number of computers , p: shows the price of a computer. How Much Should a computer be sold for to make a maximum profit A)1 B)10 C)2 D)5 E)3Use this information for Carmen Co. to answer the question that follow. Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.05 per pound and costs $14.35 per pound to produce. Product D would sell for $40.95 per pound and would require an additional cost of $10.35 per pound to produce. What is the differential cost of producing Product D? a.$6.21 per pound b.$10.35 per pound c.$12.42 per pound d.$8.28 per pound
- An industrial firm uses economic analysis to determine which of two different machines to purchase. Each machine is capable. Each machine is capable of performing the same task in a given amount of time. Assume the MARR=8%. Use the following data for analysis:What is the approximate equivalent uniform annual cost of Machine X?A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?Suppose that a manufacturer can produce a part for $11.00 with a fixed cost of $7,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $13.00, which includes transportation. a. If the anticipated production volume is 1,300 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $.
- Cox Electric makes electronic components and has estimated the following for a new design of one of its products: Fixed Cost = $7,000 Material cost per unit = $0.15 Labor cost per unit = $0.10 Revenue per unit = $0.65 Production Volume = 12,000 Per-unit material and labor cost together make up the variable cost per unit. Assuming that Cox Electric sells all it produces, build a spreadsheet model that calculates the profit by subtracting the fixed cost and total variable cost from total revenue, and answer the following questions. (a) Construct a one-way data table with production volume as the column input and profit as the output. Breakeven occurs when profit goes from a negative to a positive value; that is, breakeven is when total revenue = total cost, yielding a profit of zero. Vary production volume from 5,000 to 50,000 in increments of 5,000. In which interval of production volume does breakeven occur? to units (b) Use Goal Seek to find the exact breakeven point. Assign Set cell:…Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $1.45 per switch. Vista’s CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Machine A Machine B Annual fixed costs $ 108,900 $ 145,000 Variable cost per switch 0.46 0.20 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 150,000 switches per year and what is the total cost of that alternative?Vista Company manufactures electronic equipment. It currently purchases the special switches used in each of its products from an outside supplier. The supplier charges Vista $5.50 per switch. Vista's CEO is considering purchasing either machine A or machine B so the company can manufacture its own switches. The projected data are as follows: Annual fixed costs Variable cost per switch Machine A $632,400 1.78 Required: 1. For each machine, what is the minimum number of switches that Vista must make annually for total costs to equal outside purchase cost? 2. What volume level would produce the same total costs regardless of the machine purchased? 3. What is the most profitable alternative for producing 235,000 switches per year and what is the total cost of that alternative? Required 1 Required 2 Required 3 Complete this question by entering your answers in the tabs below. Machine B $ 860,100 0.80 Minimum number of switches For each machine, what is the minimum number of switches that…
