The following information relates to a product produced by Faulkland Company: Direct materials $ 9 Direct labor 6 Variable overhead 5 Fixed overhead 7 Unit cost $ 27 Fixed selling costs are $1,170,000 per year. Variable selling costs of $3 per unit sold are added to cover the transportation costs. Although production capacity is 670,000 units per year, Faulkland expects to produce only 570,000 units next year. The product normally sells for $35 each. A customer has offered to buy 77,000 units for $26 each. The customer will pay the transportation company directly for the transportation charges on the units purchased. If Faulkland accepts the special order, the effect on operating profits would be a:

Flying Cloud Co. has the following operating data for its manufacturing operations: Unit selling price $239 Unit variable cost $108 Total fixed costs $842,000 The company has decided to increase the wages of hourly workers which will increase the unit variable cost by 10%. Increases in the salaries of factory supervisors and property taxes for the factory will increase fixed costs by 4%. If sales prices are held constant, the next break-even point for Flying Cloud Co. will be Oa. increased by 858 units Ob, decreased by 858 units Oc. increased by 686 units Od. increased by 1,029 units

Funtastic Company has capacity for the production and sales of 30,000 units.  Current production is 15,000 units and fixed costs are $16 per unit.  If production decreases to 10,000 units, fixed costs will:

Bang Inc has the following cost details:     per kg. Material cost= 200 Direct labour= 40 Direct variable overhead= 20 Fixed production charges   for the   year on normal   working capacity   of  2 lakh kgs is 20 lakhs. 4,000 kgs of finished goods are in stock at the year end. Find Value of inventory per kg of finished goods.

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Agta Enterprises manufactures a product that sells for R180 each.  The company presently produces and sells 50 000 units per year.  Unit variable manufacturing and selling expenses are R90 and R18 respectively.  Annual fixed costs are R2 200 000 for manufacturing overheads and R1 040 000 for selling and administrative activities.    Determine the sales quantity required in order to achieve the company’s profit objective of R1 800 000.

Giddings Company manufactures and sells a single product, Product G. The product sells for $60 per unit and has a contribution margin ratio of 40 percent.  The company's monthly fixed expenses are $28,800.   If the selling price is reduced by 5%, variable costs per unit reduced by $1.00, and fixed costs increased to a total of $40,750, how many units would need to be sold to earn operating income equal to 10% of sales revenue?  (Ignore income taxes.)

Ritchie Manufacturing Company makes a product that it sells for $180 per unit. The company incurs variable manufacturing costs of $100 per unit. Variable selling expenses are $17 per unit, annual fixed manufacturing costs are $460,000, and fixed selling and administrative costs are $195,200 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by entering your answers in the tabs below. Req A to C Req D Determine the break-even point in units and dollars using the equation method, the contribution margin per unit approach and the contribution margin ratio approach. a. Break-even point in units a. Break-even point in dollars b. Contribution margin per unit b. Break-even point in units b. Break-even point…

Alpine Luggage has a capacity to produce 430,000 sultcases per year. The company is currently producing and selling 350,000 units per year at a selling price of $400 per case. The cost of producing and selling one case follows: Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Total costs Selling price per case Variable manufacturing costs Fixed manufacturing costs Variable selling and administrative costs Fixed selling and administrative costs Net profit (loss) per case The company has received a special order for 40,000 sultcases at a price of $249 per case. It will not have to pay any sales commission on the special order, so the variable selling and administrative costs would be only $52 per sultcase. The special order would have no effect on total fixed costs. The company has rejected the offer based on the following computations: Sales revenue Variable costs Manufacturing Selling and…

Suppose that a company manufactures one single product. Annual production capacity is 100 tons. The company manufactured 50 tons and sold 40 tons this vear. Relevant data are as follows: (a) Sales: 40.000.000 $, (b) Direct material costs 14.000.000 $, (c) Direct labor 5.000.000$, (d) Qverhead (variable) 4.500.000 $, (e) Qverhead (fixed) 8.000.000$. Eind the gross profit margin if the company emplovs full absorption costing. And what woQuld be the unit cost of production had the company emploved normal absorption costing?