After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price. The company expected to sell 50,000 units per month, and planned its monthly results as follows: £
Calculate the Selling Price of a New Product; What-If Questions; Break-Even Point Meyers Corporation has an annual income of $450,000, and average contribution margin ratio of 35%, and fixed expenses of $175,000. Required: a). Management is considering adding a new product to the company's product line. The
Calculate the missing amounts for each of the following firms. (Negative amount should be indicated by a minus sign. Do not round your intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.) *** View attachment for specifics ***
Kincaid Company sells flags with team logos. Kincaid has fixed costs of $583,200 per year plus variable costs of $4.80 per flag. Each flag sells for $12.00. Requirements 1. Use the income statement equation approach to compute the number of flags Kincaid must sell each year to break even. 2. Use the contribution margin
Problem facts: Problem 18-1A The following costs result from the production and sale of 4,000 drum sets manufactured by Vince Drum Company for the year ended December 31,2011. The drum sets sell for $250 each. The company has a 25% income tax rate. Variable production costs Plastic for casting .......................$6
Factors which should be taken into account when making decisions about price, such as any change in risk involved in the cost-volume-profit structure; the link between short- and long-run prices; and the interactions between acquisitions policy, financing decisions and pricing decisions.
Puppet Barn cost-volume-profit analysis in an excel worksheet: Puppet Barn's break-even point and the level of sales required to achieve its desired operating profit.
Cost-Volume-Profit Analysis Data related to the expected sales of ventriloquist dummies names Groucho, Daphne, and Tex for the Puppet Barn for December are as follows: Product Selling Price/per Unit Variable Cost/per Unit Sales Mix Groucho $45 $35 50% Daphne $100
1) Aspen company produces widgets. August budgeted production costs are below: Widgets to be produced 100,000 Direct material (variable) $30,000 Direct labor (variable) 50,000 Supplies (variable) 25,000 Supervision (fixed) 40,000 Depreciation (fixed) 30,000 Other (fixed) 10,000 Tota
CP has decided to introduce a new product which can be manufactured by either a computer assisted manufacturing system or a labor intensive production system. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are:
It's New Year's Day, 2016. You just had a great New Year's Eve celebration; you finished analyzing the performance of Tablet Development and are ready to charge ahead into the future. As you turn on the TV and try to open your eyes, you notice something strange (again). The TV commentator is saying something about New Year's Day
CVP Analysis Single-Product: Ellson Electronics Company Ellson Electronics Company manufactures video cassette recorders, which it sells for $300 per unit. Variable costs are $210 per unit, and fixed costs are $630,000 a year. The tax rate is 40%. Required: a. How many VCRs must be sold each year for the firm to br
Please see attachment for instructions as I have had no luck understanding these questions. Thanks!
Cost-volume-profit analysis Provincial Airlines is a small local carrier that operates passenger flights between the Atlantic provinces. 100% Newfoundland and Labrador owned, the airline services 13 destinations throughout Newfoundland and Labrador. After experiencing healthy early profits, the company has recently been bese
Problem One: Flow of Inventoriable Costs. Hofstra Plastics' selected data for August 2008 are presented here (in millions): Direct materials inventory 8/ 1/ 2008 $ 90 Direct materials purchased $360 Direct materials used $375 Total manufacturing overhead costs $480 Variable manufacturing overhead costs $250 Total ma
Body Sculpture Inc, makes three models of high performance weight training benches. Current operating data are summarized here: MegaMuscle PowerGym Proforce Selling price per unit $280 $400 $580 Contributi
Paul Scott has a 2008 Cadillac that he wants to update with a geo-tracker device so he will have access to road maps and directions. After-market equipment can be fitted for a flat fee of $500, and the service provider requires monthly charges of $20. In his line of work as a traveling salesman, he estimates that this devise can
Assume that the managers of a hospital are setting the price on a new outpatient service. Here are relevant data estimates: Variable cost per unit- $5.00 Annual direct fixed costs- $500,000 Annual overhead allocation- $50,000 Expected annual utilization- 10,000 visits a. What per visit price must be set for the service
E6-3 Ger Company E6-9 (a,b) Tiger Golf E6-11 Spencer Company E6-15 Imagen Arquitechtonica P6-3A Manning Industries P6-4A Creekside Inn
E6-3 Ger Company reports the following operating results for the month of August: Sales $300,000 (units 5,000); variable costs $210,000; and fixed costs $70,000. Management is considering three independent courses of action to increase net income. Compute the net income that would result from each of the independent acti
Alpha, Beta, Gamma What step could they take to improve profitability? Please answer exercise 6.1 from the attached paper.
See the attachment. GearMatrix, Inc. GearMatrix makes gear components that it sells to automotive parts manufacturers. The company is in the process making a major capital investment decision to purchase a new Flexible Manufacturing System (FMS). It is considering alternatives from 4 different vendors of FMS machines. The
Discuss: â?¢What are the features of cost-volume profit (CVP) analysis. â?¢Why are managers interested in the break-even analysis point? â?¢Compare contribution margin and fixed costs.
Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $98 per unit, and variable expenses are $68 per unit. Fixed exp
Explain how the lines on the graph and the break-even point would change if (a) the selling price per unit decreased....
In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations. Explain how the lines on the graph and the break-even point would change if (a) the selling price per unit decreased, (b) fixed cost increased throughou
Calculate the missing amounts for each of the following firms: (Negative amount should be indicated by a minus sign. Omit the "$" and "%" signs in your response.) Sales Variable Contribution Fixed Operating Costs Margin Ratio Cost
Data for Hermann Corporation are shown below: *Please see attachment Fixed expenses are $74,100 per month and the company is selling 3,400 units per month. Requirement 1: (a) Calculate the increase or decrease in net operating income if a $9,000 increase in the monthly advertising budget would increase monthly sales
CVP Analysis Technology of the Past (TOP) produces old-fashioned simple corkscrews. Last year was not a good year for sales but TOP expects the market to pick up this year. Last year's income statement was: Sales Revenue ($4 per corkscrew) $40,000 Variable Cost ($3 per corkscrew) $30,000 Contribution Margin $10,000
Galaxy Disk's projected operating income for 2008 is $200,000, based on a sales volume of 200,000 units. Galaxy sells disks for $16 each. Variable costs consist of the $10 purchase price and a $2 shipping and handling cost. Galaxy's annual fixed costs are $600,000. 1. Calculate Galaxy's breakeven point and margin of safety
Please see the attachment. Discuss the concept of contribution margin (CM). CM is the first step in arriving at CVP analysis. Discuss the importance of computing CM and how often you think organizations should track changes in CM. Do you think CM analysis can be performed at the departmental level? Do you think it can be
Gabby's Wedding Cakes creates elaborate wedding cakes.Each cake sells for $600.The variable cost of making the cakes is $250,and the fixed cost per month is $7,700. Required a. Calculate the break-even point for a month in units. b. How many cakes must be sold to earn a monthly profit of $10,000?
Your nursing home defines output as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90.00. Present revenues and costs are presented below: Revenues Amount Charge Patients (6,000 Patient Days) $750,000 Fixed-Price Patients (20,000 Patient Days) $1,800,000 Total Net Revenues