Pick-Me-Up Company is introducing a new high caffeine coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product is as follows: Price 1 Lb. units demanded $4.50 87,500 $5.00 75,500 $5.50 57,200 $6.00 47,800 $6.50 35,700 $7.00 26,300   Estimated costs are as follows: Variable manufacturing costs per unit $1.50 Fixed manufacturing cost per year $40,900 Variable selling & administrative costs per unit $0.50 Fixed selling & administrative costs per year $21,600   Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each selling price. At what price do you recommend Pick-Me-Up Company should choose.

Sako Company’s Audio Division produces a speaker that is used by manufacturers of various audio products. Sales and cost data on the speaker follow: Selling price per unit on the intermediate market $ 136 Variable costs per unit $ 118 Fixed costs per unit (based on capacity) $ 8 Capacity in units 25,000 Sako Company has a Hi-Fi Division that could use this speaker in one of its products. The Hi-Fi Division will need 5,000 speakers per year. It has received a quote of $133 per speaker from another manufacturer. Sako Company evaluates division managers on the basis of divisional profits. Required: Assume the Audio Division sells only 20,000 speakers per year to outside customers. From the standpoint of the Audio Division, what is the lowest acceptable transfer price for speakers sold to the Hi-Fi Division? From the standpoint of the Hi-Fi Division, what is the highest acceptable transfer price for speakers acquired from the Audio Division? What is the range of…

Reuben's 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: Costs Reuben's Deli cost data Amounts Materials Labor Variable overhead Fixed overhead Increments $0.24 per roll 0.40 per roll 0.16 per roll 0.20 per roll 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?

Piedmont Fasteners Corporation makes three different clothing fasteners in its manufacturing facility in North Carolina. All three products are sold in highly competitive markets, so the company is unable to raise prices without losing an unacceptable number of customers. Data from the most recent period concerning these products appear below: Annual sales volume Unit selling price Variable expense per unit Contribution margin per unit Velcro 101,800 $ 1.65 $ 1.25 $ 0.40 Metal 203,600 $ 1.50 $ 0.70 $ 0.80 Nylon 407, 200 $ 0.85 $ 0.25 $ 0.60 Total fixed expenses are $407,200 per period. Of the total fixed expenses, $20,000 could be avoided if the Velcro product is dropped, $80,000 if the Metal product is dropped, and $60,000 if the Nylon product is dropped. The remaining fixed expenses of $247,200 consist of common fixed expenses such as administrative salaries and rent on the factory building that could be avoided only by going out of business. The company's managers would like to…

Pick-Me-Up Company is introducing a new high caffeine coffee in its stores and must decide what price to set for the coffee beans. An estimated demand schedule for the product is as follows: Price 1 Lb. units demanded $4.50 85,600 $6.00 74,500 $7.50 56,000 $9.00 49,100 $10.50 34,800 $12.00 27,100   Estimated costs are as follows: Variable manufacturing costs per unit $1.50 Fixed manufacturing cost per year $38,200 Variable selling & administrative costs per unit $0.50 Fixed selling & administrative costs per year $20,900   Prepare a schedule showing management the total revenue, total cost, and total profit or loss for each selling price.At what price do you recommend Pick-Me-Up Company should choose.

Widget Co. produces widgets for customers. The company has provided the following financial information for the past year. Each scenario below is separate. Product Selling price per unit Sales Quantity Variable cost per unit Fixed costs Widgets $9.00 528,000 $2.00 $67,000 Do not enter dollar signs or commas in the input boxes. Round breakeven units up to the nearest whole number. Round breakeven sales to the nearest whole number. a) Calculate break-even units and break-even sales. Breakeven units = Breakeven sales = $ b) Suppose the company would like to generate an operating profit of $5,000. Determine the revenue that is needed to obtain this target, and calculate the number of units that need to be produced to meet this goal. Breakeven units = Breakeven sales = $ c) Suppose the company decides to lower the selling price from $9.00 per unit to $8.00 per unit. Calculate break-even units and break- even sales. Breakeven units = Breakeven sales = $ d) Suppose that fixed costs drop to…

The following information relates to a. The following per-unit cost information relates to Product K of Magna Company, based on the maximum capacity of 40,000 units. Variable Manufacturing $ 30 Variable Selling 4 Fixed Manufacturing 12 Fixed Selling 7 Unit cost $ 53 Magna is expected to sell all of 40,000 units produced to its regular customers for a price of $80 per unit. Sonya has approached Magma to buy 10,000 units of Product K. If Magna sells to Sonya, variable selling costs will not be incurred. To Sonya, Magna has to charge at least per unit? Multiple Choice $80 $76 $26 $53 $30

Sensational Soft Drinks makes three products: iced tea, soda, and lemonade. The following data are available: Line Item Description Iced Tea Soda Lemonade Sales price per unit $0.90  $0.60  $0.50  Variable cost per unit (0.30) (0.15) (0.10) Contribution margin per unit $0.60  $0.45  $0.40  Sensational is experiencing a bottleneck in one of its processes that affects each product as follows: Line Item Description Iced Tea Soda Lemonade Bottleneck process hours per unit 3 3 4 a.  Using a theory of constraints (TOC) approach, rank the products in terms of profitability. Rank Product 1.   2.   3.   b.  What price for lemonade would equate its profitability (contribution margin per bottleneck hour) to that of soda? Round your answer to two decimal places.fill in the blank 1 of 1$

Crane Company manufactures dog food for distribution in Washington, Oregon, and California. A dog food distributor from Florida has approached Crane and offered to purchase 264000 pounds of dog food for $1.40 per pound. Crane can produce 2048000 pounds of dog food per year, and its results for last year are as follows: Sales (1844000 at $1.65) Variable costs Contribution margin Fixed costs Operating income $3042600 O $1392800 O $1336400 O $2084400 O $1270400 1106400 1936200 814000 $1122200 If Crane accepts the offer, it will only be able to sell 1784000 pounds of dog food at the regular price due to its capacity constraints. What will Crane's total operating income be next year if it accepts the offer?

Vandenberg, Inc., produces and sells two products: a ceiling fan and a table fan. Vandenberg plans to sell 40,000 ceiling fans and 60,000 table fans in the coming year. Product price and cost information includes:   Ceiling Fan Table Fan Price $54 $12   Unit variable cost $11 $9   Direct fixed cost $20,800 $41,000   Common fixed selling and administrative expenses total $84,000. Required: 1. What is the sales mix estimated for next year (calculated to the lowest whole number for each product)?Sales mix of ceiling fans to table fans = _______ : __________ 2. Using the sales mix from Requirement 1, form a package of ceiling fans and table fans. How many ceiling fans and table fans are sold at break-even? Round your intermediate calculations and final answers to the nearest whole number. Break-even ceiling fans ______ Break-even table fans _______     3. Prepare a contribution-margin-based income statement for Vandenberg, Inc., based on the unit sales…