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
Argentina Partners is concerned about the possible effects of inflation on its operations. Presently, the company sells 60,000 units for $30 per unit. The variable production costs are $15, and fi xed costs amount to $700,000. Production engineers have advised management that they expect unit labor costs to rise by 15 percent
Cost Volume profit Orange Hot Berhad produces and sells an average of 200,000 bottles of Orange Hot Chilli Sauce each month. The following costs were available: RM Selling price per bottle 2.00 Variable costs per bottle: Materials and labour 0.80 Selling and distribution 0.40 Fixed monthly costs: R
Green Shades Inc. (GSI) sells hammocks; variable costs are $75 each, and the hammocks are sold for $125 each. GSI incurs $250,000 of fixed operating expenses annually. Required a. Determine the sales volume in units and dollars required to attain a $50,000 profit. Verify your answer by preparing an income statement using
Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Detroit Disk has been selling the disks for $24 each. The variable costs consist of the $15 unit purchase price of the disks and a handling cost of $3 per disk. De
During its 3rd year of business, Pete's Pasta estimates that 415,000 pastas (385,000 meaty pastas and 30,000 veggie) will be made. Direct material costs per unit are $.74 per meaty pasta and $.62 per veggie pasta. Direct labor costs are $2.51 per meaty pasta and $2.78 per veggie pasta. Monthly fixed selling and administrative
Feather Friends, Inc., distributes a high-quality wooden birdhouse that sells for $20 per unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year. Required: Answer the following independent questions: 1. What is the product's CM ratio? 2. Use the CM ratio to determine the break-even point in
Snowbird Snowboards converts regular snowboards by adding outriggers and seats so that people who use wheelchairs can snowboard. The income statement for last year, in which 500 snowboards were produced and sold, appears here. Revenue 150,000 Expenses Variable product
U05a2 - CVP Analysis, Costing Method P-12.20 CVP Application - What If Questions: Sales Mix Issue. This provides a simple illustration of CVP analysis. CVP application - eliminate product from operations? Body Sculpture, Inc., makes three models of high=performance weight-training benches. Current operating data are summar
Johnson, Inc. projects sales for next year will be 70,000 units if the sales price is $30. At this level, unit fixed costs will be $10 while variable costs will be $700,000. The vice president of marketing advises management to reduce sales price to $25 and to undertake a national advertising campaign costing $15,000. a.What
Discuss how a flexible budget lends itself to cost-volume-profit analysis.
1. Readings · Read Ch. 22, 23, 24, 26, & 27 of Business Law: Legal Environment, Online Commerce, Business Ethics, and Interpersonal Issues. 2. Learning Team Assignment: Flexible Budgets · Write a paper in which you discuss flexible budgets. · Explain the relationship between fixed
25. Cost Estimation and regression Analysis: Dali financial services prepares tax returns for small businesses. Data on the company's total costs and output for the past six months appear in the table that follows. The result of the regression analysis are also provided. a. Plot the data and regression line on a graph. b. Est
Anthony Industries Income Statement for year ending December 31, 2009 revenues $750,000 variable costs: Variable manufacturing costs $280,000 variable selling costs 120,000 Total variable costs 400,000 Co
Need to show the work for Part C and Part D. The work for Part A, Part B, and some of Part C have been completed. I am having trouble with figuring how to complete Part A and B. PROBLEM Sure Corporation has collected the following information after its first year of sales. Net sales were
Scenario: Sure Corporation has collected the following information after its first year of sales. Net sales were $1,600,000 on 100,000 units; selling expenses $240,000 (40% variable and 60% fixed); direct materials $511,000; direct labor $285,000; administrative expenses $280,000 (20% variable and 80% fixed); manufacturing overh
The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive
Plainfield Bakers manufactures and sells a popular line of fat free cookes under the name Aunt May's cookies. The process Plainfield uses to manufacturer the cookies is labor-intensive; it relies heavily on direct labor. Last year Plainfield sold 300,000 dozen cookies at $2.50 per dozen. Variable costs at this level of productio
I need with this questions. For what is cost-volume-profit (CVP) analysis used? What are some of the key underlying assumptions that make CVP analysis useful for decision makers? Why might decision makers use CVP analysis? I need a word count of 200 Thank you,
Do you agree with the notion of value costing for the 21st Century organizations. Why or Why Not? Why types of situations may be more appropriate for application of the some of the "tried and true" costing methods of the 20th Century? Are these industry or firm specific? Is Cost-Volume-Profit Analysis still relevant in t
12.18 CVP analysis-what-if questions; sales mix issue. Camden Metal Co. makes a single product that sells for $84,000 per unit. Variable costs are $54.00 per unit, and fixed costs total $120,000 per month. Required: A. Calculate the number of units that must be sold each month for the firm to break even. B. Calculate oper
12.2 Cost classifications. For each of the following costs, check the column(s) that most likely to apply: Cost Variable Fixed Raw materials Staples used to secure packed boxes of product Plants janitor's wages Order processing clerks' wages Advertising expenses Production workers' wages Production supervisiors'
Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The following data relates to the period just ended when the company produced and sold 42,000 speaker sets: Sales $3,360,000 Variable Costs 840,000 Fixed Costs 2,280,000 Management is considering relocati
Using both the Plantwide and the Activity-based costing approach, calculate the unit cost for each product. Direct Labour Hours should be used as the basis for applying overheads.
These 2 questions are proving to be too much for me and I am running short of time!! I really need to see how one would work through these calculations, step by step and then understand why. Question 1: The Yandina Manufacturing Company Ltd produced 40,000 lamps in 2008. The following cost data were obtain
Molly Dymond and Kathleen Taylor are considering the possibility of teaching swimming to kids during the summer. A local swim club opens its pool at noon each day, so its available to rent during the morning. The cost of renting the pool during the 10-week period for which Molly and Kathleen would need it is $1,700. The pool wou
Phonetronix is a small manufacturer of telephone and communications devices. Recently, company management decided to investigate the profitability of cellular phone production. They have three different proposals to evaluate. Under all the proposals, the fixed costs for the new phone would be $110,000. Under proposal A, the sell
Missing data- Basic CVP Concepts
Memofax, Inc., produces memory enhancement kits for fax machines. Sales have been very erratic, with some months showing a profit and some months showing a loss. The company's contributions format income statement for the most recent month is given below. Sales (13,500 units at $20 per unit) . . . . . . . . . . . . . . . . . .
You have been given a proxy income statement for Bruce Wayne Corporation for the fiscal year 2003. It is summarized below: Bruce Wayne Corporation Income statement For the Year Ended November 31st, 2003 Revenue 650000 Cost o
Sun Inc. sells a single product and has no inventory. The company's 2006 income statement is given below. Sales (4,000 units) $800,000 Less flexible (variable) expenses $200,000 Less capacity-related (fixed) expenses $300,000 In an attempt to improve performance, Jo, the manager is considering a number of alternativ