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# Company's Current Sales and Fixed Sales

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1, The manufacturing cost of Lancer Industries for three months of the year are provided below:

Total Cost Production
April \$ 61,900 1,200 Units
May 80,920 1,800
June 100,300 2,400

Using the high-low method, the variable cost per unit, and the total fixed costs are:

2, Please use the following for Problems:

Mavis Company uses the total cost concept of applying the cost-plus approach to product pricing. The costs and expenses of producing and selling 38,400 units of Product E are as follows:

Variable costs:
Direct materials \$ 4.70
Direct labor 2.50
Total \$ 11.70
Fixed costs:

Mavis desires a profit equal to a 14% rate of return on invested assets of \$640,000

A, Determine the amount of desired profit from the production and sale of Product E.

B, Determine the total costs and the cost amount per unit for the production and sale of 38,400 units of Product E.

C, Determine the markup percentage for Product E.

D, Determine the selling price of Product E.

3, Given the following cost and activity observations for Wondrous Company's utilities, use the high-low method to calculate Wondrous' variable utilities costs per machine hour.
Cost Machine Hours
March \$3,100 15,000
April 2,700 10,000
May 2,900 12,000
June 3,500 18,000
4, Given the following cost and activity observations for Johnson Company's utilities, use the high-low method to calculate Johnson's fixed costs per month.
Cost Machine Hours
January \$52,600 20,000
February 75,100 29,000
March 57,000 22,000
April 64,000 24,500

5, Ingram Co. manufactures office furniture. During the most productive month of the year, 3,500 desks were manufactured at a total cost of \$84,400. In its slowest month, the company made 1,100 desks at a cost of \$46,000. Using the high-low method of cost estimation, total fixed costs are..?
6, If fixed costs are \$1,400,000, the unit selling price is \$220, and the unit variable costs are \$120, what is the amount of sales required to realize an operating income of \$200,000?
7, If fixed costs are \$750,000 and variable costs are 70% of sales, what is the break-even point (dollars)?
8, If fixed costs are \$250,000, the unit selling price is \$105, and the unit variable costs are \$65, what is the break-even sales (units)?
9, If sales are \$820,000, variable costs are \$524,800, and operating income is \$260,000, what is the contribution margin ratio?
10, If sales are \$425,000, variable costs are 63% of sales, and operating income is \$50,000, what is the contribution margin ratio?
11, If fixed costs for a company are \$65,000 and variable costs are 20% of sales, what do total sales need to be to achieve a target net income of \$35,000?
12, A company's current sales are \$400,000 at a volume of 10,000 units. Fixed costs are \$120,000 and variable costs are \$30 per unit. What is the company's breakeven sales volume in units?

#### Solution Summary

A company's current sales and fixed sales are examined.

\$2.19

## Comprehensive Financial Analysis

Locate the financial section of the organization's (Walt Disney Co) most recent annual report. Perform a financial analysis on your selected organization to include liquidity, efficiency, and profitability ratios, asset management, debt management, and market returns. Based on your analysis, identify the key strengths and weaknesses of the organization's financial position. Provide a recommendation of how the organization's future financial plans can be modified in order to improve its financial performance.

Evaluate the performance of your selected organization (Walt Disney) using financial ratios. Be sure to address the following in your evaluation:

1) What conclusions can you draw about the organization's performance over the last five years in terms of liquidity, activity, leverage, profitability and market value ratios?

2) If there are weaknesses, what factors explain them and what remedies would you offer? If there are strengths, how would you reinforce them?

Please provide the answer enough to write a minimum of 500 words. Please provide source citations and references.

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