Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 11, Problem 19E
a)
To determine
Compute the contribution margin per unit.
b)
To determine
Compute the number of units, which the company should sell to break even.
c)
To determine
Compute the level of sales in units, which the company should reach to gain the profit of $240,000.
d)
To determine
Compute the margin of safety in units, dollars, and in percentage.
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Students have asked these similar questions
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?
Chapter 25
eBook
4 Show Me How
Product Cost Method of Product Costing
Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows:
Variable costs per unit:
Fixed costs:
Direct materials
$71
Factory overhead
$199,500
Direct labor
37
Selling and administrative expenses
70,800
Factory overhead
22
Selling and administrative expenses
22
Total variable cost per unit
$152
Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600.
a. Determine the amount of desired profit from the production and sale of 5,270 cell phones.
$ 90,240 v
b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar.
168
V per unit
c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places.
31
х%
The following data are available for X Corp:Gross profit is 20% based on cost. Using ABC, compute the selling price of each unit of Product B?
Chapter 11 Solutions
Survey Of Accounting
Ch. 11 - 1.Define fixed cost and variable cost and give an...Ch. 11 - Prob. 2QCh. 11 - 3.Define the term operating leverage and explain...Ch. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - 6.If volume is increasing, would a company benefit...Ch. 11 - Explain the risk and rewards to a company that...Ch. 11 - 9.Are companies with predominately fixed cost...Ch. 11 - 10.How is the relevant range of activity related...Ch. 11 - Which cost structure has the greater risk?...
Ch. 11 - 14.The president of Bright Corporation tells you...Ch. 11 - Prob. 12QCh. 11 - Prob. 13QCh. 11 - Prob. 14QCh. 11 - Prob. 15QCh. 11 - Prob. 16QCh. 11 - Prob. 17QCh. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Exercise 2-4A Determining total variable cost The...Ch. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 - Prob. 9ECh. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prepare an income statement using the contribution...Ch. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17ECh. 11 - Prob. 18ECh. 11 - Prob. 19ECh. 11 - Prob. 20ECh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Problem 2-19A Context-sensitive nature of cost...Ch. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26PCh. 11 - Prob. 27PCh. 11 - Prob. 28PCh. 11 - Prob. 29PCh. 11 - Prob. 1ATCCh. 11 - Prob. 2ATCCh. 11 - Prob. 3ATCCh. 11 - Prob. 4ATCCh. 11 - Prob. 5ATC
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