The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00 per unit for other variable cost. The fixed cost per month amounts to $900,000. The calculator is sold at $1,200 per unit, 71. What is the break-even quantity per month? a. 1029 c. 1209 b. 1092 d. 1902 2. How many units must be produced ach month in order that the net profit is 25,000 more than its cost? a. 3139 c. 3913 b. 3319 d. 3391

The cost of producing a calculator consists of $250.00 per unit for labor and material cost, $75.00 per unit for other variable cost. The fixed cost per month amounts to $900,000. The calculator is sold at $1,200 per unit, 71. What is the break-even quantity per month? a. 1029 c. 1209 b. 1092 d. 1902 2. How many units must be produced ach month in order that the net profit is 25,000 more than its cost? a. 3139 c. 3913 b. 3319 d. 3391

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 47P: (Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30...

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(Appendix 11A) Cycle Time, Velocity, Conversion Cost The theoretical cycle time for a product is 30 minutes per unit. The budgeted conversion costs for the manufacturing cell are 2,700,000 per year. The total labor minutes available are 600,000. During the year, the cell was able to produce 1.5 units of the product per hour. Suppose also that production incentives exist to minimize unit product costs. Required: 1. Compute the theoretical conversion cost per unit. 2. Compute the applied conversion cost per unit (the amount of conversion cost actually assigned to the product). 3. CONCEPTUAL CONNECTION Discuss how this approach to assigning conversion costs can improve delivery time performance.
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