Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Basic $ 19.00 $ 12.00 36,000 Custom $ 54.00 $ 33.00 24,000 Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $396,900. Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. Note: Do not round Intermediate calculations. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Note: Do not round intermediate calculations.

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3. JJ Manufacturing builds and sells switch harnesses for glove boxes. The sales price and variable cost for each follows: Product                            Selling price per unit             Variable cost per unit Trunk switch                           $60.00                                        $28.00 Gas door switch                     $75.00                                        $33.00 Glove box light                       $40.00                                        $22.00 Their sales mix is reflected in the ratio 4:4:1.  What is the overall Composite Unit Contribution Margin for JJ Manufacturing with their current product mix?  If annual fixed costs shared by the three products are $18,840, how many units of each product are to be sold in order for JJ Manufacturing to break even? Trunk Switch? Gas Door Switch? Glove Box Light? Determine their break-even point in sales dollars. Trunk Switch? Gas Door Switch? Glove Box Light?

A Company wants to introduce new product. The estimated price of each mobile phone is RO 60. The company requires a profit margin of 20% on sales.  The estimated cost of manufacturing the product is :  Material cost : RO 9.500  Labour Cost : RO 12.750  Other Direct Expenses : RO 7.500  Administrative Costs : RO 5.000  Marketing and Selling expenses : RO 15.000  Calculate the Target Cost of the product and the Target Cost Gap.

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Which among the following cost encourage management to focus on life cycle costing? O a. Maintenance costs O b. All the options listed O c. Repair costs O d. Warranty costs Fun games LLC wants to introduce a new Play station 5 into the market. The estimated price of each Play station 5 is RO 450. The required profit margin is 30% of sales. The target cost for the new Play station 5 is: O a. RO 515 O b. RO 385 Oc. RO 315 O d. RO 585

Gamin Inc. produces various GPS devices with a wide assortment of different models for its customers. One item, RC1 is very popular. Keen of keeping its stock under control, a decision is taken to order only the optimum economic quantity, for this item, each time. You have the following information.     Annual demand (units) 115,200 Purchase price per unit $ 300 Carrying/Holding costs per unit $ 8 Cost per order $ 200 Required: Determine the EOQ using the equation method.  Fill the blanks in the following table using the above data.  No. of orders 1 10 20 30 90 120 Order size             Average stock             Carrying (Holding) costs               Order costs               Total costs                             Calculate the holding, ordering cost & their total cost at the EOQ level.  Plot the graph at the EOQ level showing the…

Al Ameen Company sells television sets for RO 200. The variable cost is RO 100 per unit. The fixed costs are RO 350,000. The company wants to have a profit of RO 150,000. How many units must be sold to achieve this goal? a. 6,000 units b. 2,000 units c. 5,000 units d. 3,000 units

The background information is provided in the image attached. Solve the following: g) Briefly explain the impact of each of the following scenarios on the contribution margin per unit and thebreak-even point:(i) Sales volume increases(ii) Total fixed cost decreases(iii) Selling price per unit increases(iv) Variable cost per unit increases