Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $2,740,000 based on a sales volume of 270,000 video disks. Disk City has been selling the disks for $22 each. The variable costs consist of the $8 unit purchase price of the disks and a handling cost of $2 per disk. Disk City
CollegePak Company produced and sold 60,000 backpacks during the year just ended at an average price of $20 per unit. Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold. Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing. There was no year-end work-in-proce
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
Explain cost-volume-profit analysis, including an explanation of the calculation and the components. In what three ways can the contribution margin be useful in cost-volume-profit analysis? What does the term break-even point mean? Name the two ways it can be measured.
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
Lockwood Company currently sells it's deadbolt locks for $30 each. The locks have a variable cost of $10, and the company annual fixed costs are $150,000. The company's tax rate is 40 percent. Required: Calculate the number of locks that must be sold to earn an after-tax profit of $24,000
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
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all
Phoenix-based CompTronics manufactures audio speakers for desktop computers. The following data relate to the period just ended when the company produced and sold 42,000 speaker sets: Sales ...........................................................................................................................................
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.
What is the value for a manager in conducting a cost-volume-profit analysis?
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.
SCENARIO CONTINUATION: It is now 1/2/2006 (again), still at the beginning of Time Warp 2. You have just completed your revised strategy using CVP analysis, and you are ready to charge ahead. You implement your decisions for 2006 and time flows by quickly. You see the results at the end of the year and you collect these resul
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 $68 per unit. Fixed exp
Explain how the lines on the graph and the break-even point would change if (a) the selling price per unit decreased....
In response to a request from your immediate supervisor, you have prepared a CVP graph portraying the cost and revenue characteristics of your company's product and operations. Explain how the lines on the graph and the break-even point would change if (a) the selling price per unit decreased, (b) fixed cost increased throughou
Please help with the following problem. Calculate the missing amounts for each of the following firms: (Negative amount should be indicated by a minus sign. Omit the "$" and "%" signs in your response.) Sales Variable Contribution Fixed Operating
Explain how a shift in the sales mix among 3 products (even if the total sales remain the same,as planned, say $500,000 ) could result in both a higher break-even point and a lower net operating income.
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 Fi
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
A division of XXXX Company changed its production operations from one where a large labor force assembled electronic components to an automated production facility dominated by computer-controlled robots. The change was necessary because of fierce competitive pressures. Improvements in quality, reliability, and flexibility of
Clyde's Marina has estimated that fixed costs per month are $300,000 and variable cost per dollar of sales is $0.40. Required a. What is the break-even point per month in sales dollars? b. What level of sales dollars is needed for a monthly profit of $60,000? c. For the month of July, the marina anticipates sales of $1,
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?