What would be the impact on the targeted overhead rate if the firm decides to boost marketing expenses by RM20,000, according to the plan? What will be the actual cost of items sold?
Q: Karama Co., a manufacturer of wood chairs, had the following data for 2020: Sales Sales price…
A: Break-even analysis determines the number of units of a product that should be sold by an…
Q: How do you compute the monthly margn of safety in dollars if the shop has a monthly target profit…
A: Given that: Target profit = $54000 Variable costs = 20% of sales Fixed costs = $18000
Q: Blossom Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,430…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Calculate the selling price if the company adds mark-up of 82% on variable manufacturing costs.
A: Variable costs are those costs which change with the level of production or activity. The variable…
Q: Sheridan Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales…
A: Sales 2,200 units Sales price $75 per unit Variable costs $45 per unit Fixed costs…
Q: A company is planning to manufacture rocking chairs. The fixed cost will be for $40,000. The cost…
A: Formulae: Cost Function:C(x)= FC + V(x)where,C=Total CostFC=Total Fixed CostV=Variable cost per…
Q: If the company plans to increase promotion expense by RM20,000, how will that affect the…
A: In absorption costing, which is also known as full costing includes all manufacturing costs of both…
Q: Milden Company is a distributor who wants to start using a contribution format income statement for…
A: As per the high-low method, the highest level of activity and lowest level of activity cost is…
Q: The Puzzle Company had total revenue of $4,750,000, total fixed costs of $1,500,000, and total…
A: The total sales volume refers to the total goods sold in a year by a company. It is computed by…
Q: The management of Brinkley Corporation is interested in using simulation to estimate the profit per…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of…
A: Costing- It refers to classifying, recording, and appropriate allocation of expenditure for the…
Q: Alpha Company’s Manager is considering selling price for product C. The company is using Absortion…
A: Absorption Costing: The absorption costing method is used by the companies to calculate the costs…
Q: Use the information provided below to answer the following questions: How much more can the company…
A: Solution:-3.2.1 Calculation of Breakeven as follows under:-
Q: Sondela Ltd is a manufacturing company that is planning to use the cost-plus pricing method to set…
A: Total Variable cost per unit = Direct material + Direct labour + Manufacturing overheads + Sales…
Q: APPLY THE CONCEPTS: Effect of Changes to Sales Price, Variable Costs and Fixed Costs Now consider…
A: Solution
Q: Palau Company is considering the introduction of a new product. As one step its study of the new…
A: Total costs of the business includes fixed costs and variable costs of the business. Markup is the…
Q: Hello, I have the following question. D&R Corp. has annual revenues of $284,000, an average…
A: Computation of Selling Price of New Product
Q: During March, a firm expects its total sales to be $162,000, its total variable costs to be $95,200,…
A: Ans. Contribution margin is calculated by deducting variable cost from total sales.
Q: The next two questions are based on Yellow Company is considering the introduction of a new product…
A: The mark up percentage in the absorption cost approach is calculated by dividing the sum of the…
Q: What is the net income for 2015 if the additional $19,440 is spent and the revenue target is met?
A: The calculation of target net income for 2015 is presented hereunder :
Q: The Metal Products Company produces a sewing machine that sells for Rs. 300. An increase of 15% in…
A: The gross profit indicates the difference between the cot of sales and the selling price. The cost…
Q: Total fixed cost of a product is IDR 10,000,000 and variable cost is IDR 50,000 per unit. The sale…
A: The Break-even point is at which the company earns no profit/loss. At this point companies…
Q: Assume the following information for a merchandisıng company: $ 500,000 $ 25,000 $ 350,000 $ 50,000…
A: Contribution margin = Sales - Total variable costs
Q: Gwen is the managerial accountant in charge of Company A, which sells water bottles. She previously…
A: In the context of the given question, we are required to compute the break-even point quantity and…
Q: How much can Tulip afford to spend on variable cost per unit if production and sales equal 46,000…
A: Variable cost is the total production cost that is affected by the change in the level of output.…
Q: The company has been approached by a customer with a request for a 100-unit special order. What is…
A: Variable Cost: Variable cost is the cost which varies with activity measure. Its important for…
Q: rtising, sales could be increased by 20%. What is the maximum increased advertising cost the company…
A: Advertising cost refers to the expenses that are involved in the promotional activities of the…
Q: Curtis Salter, the president of Kasimer Computer Services, needs your help. He wonders about the…
A: Introduction: The master budget includes budgeted financial statements, a cash projection, and a…
Q: Marquette Manufacturing produces "invisible" electric dog fences, sold through retail locations…
A: Variable costs are the costs which changes with the variation in output and vice versa to this,…
Q: Puerto Princesa Company must determine a target selling price for one of its products. Cost data…
A: The selling price is computed as addition of mark up cost to cost price of a product.
Q: A firm presently has total sales of P100,000. If its sales rise, its A. net income based on…
A: In absorption costing, all costs related to the manufacturing whether fixed or variable will be…
Q: For a certain company, the cost function for producing x items is C(x)=40x+200, and the revenue…
A: Profit function is the difference between Sales and cost function. P(x) = R(x) - C(x) domain of…
Q: If the imputed charge is 15% and Tan wants to achieve a residential income target of P2,000,000,…
A: Residual income is the amount of income that is over and above income at normal rate of return…
Q: Friedman Co. is considering adding a new product. Based on preliminary market research, the company…
A: Target cost can be calculated by deducting the profit margin from the expected sales revenue.
Q: A department store has overhead costs of $250, 000 and a linear total cost function. The controller…
A: The total selling price of the product also includes markup.
Q: if the company desires to earn profit of 25% on selling price, the selling price per unit of product…
A: Prime Cost = Rs.20 Per Unit Factory Overheads = 20% of Prime Cost = Rs.20 x 20% = Rs.4 Works Cost =…
Q: If a company wishes to extend credit standards in order to increase its sales and generate…
A: The question is related Management of Receivables and is related to evaluation of credit policy. The…
Q: A responsibility center's contribution margin ratio is 40%, and its common fixed costs are currently…
A: Increase in margin = Increase in contribution margin - Increase in fixed costs where, Increase in…
Q: firm’s manager must decide whether to make or buy a certain item used in the production of vending…
A: Total Cost = Fixed Cost + ( Volume x Variable Cost )
Q: Miles Co. can further process Product B to produce Product C. Product B is currently selling for P60…
A: Differential revenue is the amount of net increment of further processing. It can be calculated by…
Q: A company would like to determine various costs and points to aid them in deciding whether to expand…
A: P/V Ratio:-Profit volume ratio is the relationship between the contribution and Sales. The formula…
Q: PJS Seating Company, a manufacturer of chair, had the following data for 2020. Sales 2,400 units Php…
A: Solution:-1 Calculation of margin of safety in Peso as follows:- First we need to calculate…
Q: As AdWorld’s sales manager, assume that you estimate costs pertaining to a proposed job as $17,076.…
A: Pricing decisions: These are the choices regarding the price setting of a product or a service that…
Q: Martin Company is considering the introduction of a new product. To determine a selling price, the…
A: Absorption Costing Approach: Mark up = Profit + Variable SG&A + Fixed SG&A Profit =…
Q: A company manufacturing laundry sinks has fixed costs of $100 per day but has total costs of $2,500…
A: Average cost is the total cost function divided by quantity produced. Maximum profit is calculated…
Q: Compute the required sales in dollars needed to achieve management’s target net income of $102,100.
A:
Q: Suppose that a manufacturer can produce a part for $8.00 with a fixed cost of $6,000. Alternately,…
A: Make or buy decision is an important managerial decision, in this decision management need to…
What would be the impact on the targeted
Step by step
Solved in 3 steps
- If the company plans to increase promotion expense by RM20,000, how will that affect the predetermined overhead rate? Eventual cost of goods sold?The manager of a company are planning to manufacture more product than is needed for expected sales for the coming year. What effect will this have on operating income under(a) the absorption costing concept and (b) the variable costing concept?Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?
- A company produces and sells a product. The company has found that the costto produce x units of the product is given by C(x) = 50x + 200 (in dollars),and the revenue from selling x units is given by R(x) = 100x - x? (in dollars).What is the number of units the company should produce and sell to maximize profita. What is the box annual sales volume for each area to be able to compete on a competitive advantage strategy with competitors? b. What do you suggest to the company based on the cost data above for the location of its factory construction? Explain why and use the calculation data so that decision making can be in accordance with the company strategy that you have learned.A small company manufactures a certain item and sells it online. The company has a business model where the cost, C in dollars, to make x items is given by the equation C = 20/3 x + 50. The revenue R , in dollars , made by selling x items is given by the equation R = 10x. How many items must the company sell in order for the cost to equal their revenue?
- What are the answers for the following? Construct a cost-volume-profit chart on your own paper. What is the break-even sales? What is the expected margin of safety in dollars and as a percentage of sales? Determine the operating leverage. Round to one decimal place.What variables, in addition to number of service reports, might be cost drivers of weekly customerservice costs of Camilla Products?The total cost formula for a company can be modeled by TC = 12570+ 50x where x represents the number of items sold. A formula for the company's total income is modeled with TR 80x, where a represents the number of items sold. This company will breakeven when its total costs equal its total income. - How many items must this company sell to breakeven? Answer:
- 1. What is the profit per day of Machine A? 2. What is the profit per day of Machine B? 3. What would the percent of parts rejected have to be for Machine B to be as profitable as Machine A?Thank you for that, it actually coincides with what I think. However, could you please calculate the breakeven points and give an explanation of what they mean to the director. Also, could you please calculate the sales activity to reach a target profit of 20,000Suppose a ceiling fan manufacturer has the total cost function C(x) = 35x + 1200 and the total revenue function R(x) = 65x. (a) What is the equation of the profit function P(x) for this commodity? P(x) = (b) What is the profit on 20 units? P(20) = Interpret your result. The total costs are less than the revenue. The total costs are more than the revenue. The total costs are exactly the same as the revenue. (c) How many fans must be sold to avoid losing money? fans