Sales volume Sales price Unit VC Input price for DL Input quantity per unit for DL Budgeted 110 units O $200 favorable $50 per unit $30 per unit $10 per hour 1.5 hours per unit Compute sales volume variance Actual 100 units $55 per unit $33 per unit $12 per hour 2 hours per unit

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Bruce Corporation makes four products in a single facility. These products have the following unit product costs: Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Unit product cost Additional data concerning these products are listed below. Grinding minutes per unit Selling price per unit Variable selling cost per unit Monthly demand in units A $ 14.00 19.10. 4.00 Products B D $9.90 $ 10.70 $ 10.30 33.30 40.10 27.10 2.40 2.30 2.90 26.20 34.50 26.30 36.90 $63.30 $ 73.90 $72.60 $90.20 A 3.50 $ 75.80 $ 1.90 3,700 Products: B 5.00 $ 93.20 $0.90 3,700 C D 3.10 4.00 $ 87.10 $ 103.90 $ 3.00 $ 1.30 2,700 2,900 The grinding machines are potentially the constraint in the production facility. A total of 50,400 minutes are available per month on these machines. Direct labor is a variable cost in this company. Up to how much should the company be willing to pay for one additional minute of grinding machine time if the company has made the best use of the…

MSRP $5.39 $4.99 Volume Discount 35% 35% Unit Cost $1.49 $1.49 Promotional Allowance 15% 20% Advertising and Promotion $25 Million $20 Million Allocated Fixed Costs $68 M $12 M Projected Unit Sales 115M 10M A firm has an existing product with a combined advertising and promotion budget of $25.0 million and with projected sales of 115 million units. They are launching a new product with a budget of $20.0 million and estimated sales of 10 million units in the first year. The sales force expense of $10 million has been allocated equally between products; 90% of the plant overhead has been allocated to the existing product, and 10%, to the new product. Additional values for each product are shown in the table above. 1. Production anticipates it will need to increase capacity to 140 million units, adding $10.0 million to annual fixed costs. If the product allocation of the plant cost is also changed to 80%/20%, what is the impact on break-even units? Please use the chart…