Principles of Accounting Volume 2
19th Edition
ISBN: 9781947172609
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 10, Problem 14MC
A company produces two products. E and F in batches of 100 units. The production and cost data are:
The company can only perform 12,000 set-ups each period yet there is unlimited demand for each product.
What is the differential profit from producing product E instead of product F for the year?
A. $216,000
B. $204,000
C. $12,000
D. $54,000
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White Lake Inc. produces and sells a single product. Data concerning that product appear below:
Selling price per unit
$
230.00
Variable expense per unit
$
103.50
Fixed expense per month
$
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Required:
a. What is the minimum amount of sales revenues in dollars to break even?
b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
XYZ Inc. sells a single product for $30 per unit. Variable production costs are $18 per unit. Fixed overhead costs amount $20,000 per month. Variable selling costs are $3 per unit. Fixed selling costs are $4,000 per month. Last month, the company produced 10,000 units and sold 8,000 units. What is the company’s margin of safety? a. $160,000 b. $80,000 c. $40,000 d. $20,000
A Company produces a single product which sells for $20 per unit. Variable Cost is $15 and
fixed cost for the year is $630,000
Required:
(1) Calculate Sales value needed to earn profit of 10% on sales
(2) Calculate sales price per unit if BEP down to 120,000 units
Chapter 10 Solutions
Principles of Accounting Volume 2
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