Say you have decided to start a business producing and selling $400 high-quality coats. Answer the...
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Say you have decided to start a business producing and selling $400 high-quality coats. Answer the following questions:
(The product is high-quality coats. They will be sold at $400 apiece)-
The manufacturing cost per unit is $43.25 The total cost of the materials for 1,000 units is $80,250.
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Rent $108,000 Fixed Utilities $60,000 Variable Insurance $30,000 Fixed Labor Expense $156,000 Variable Manufacturing Overhead $100,000 Fixed Selling and Distributive Expense $20,000 Variable Depreciation Expense $15,000 Fixed Total Expenses $489,000
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Calculate how many units of your product you would need to sell to break even. Show your work.
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How much operating income would be desirable to earn in the first year? Calculate how many units you would need to sell to break even, and to meet your target profit.
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Homework Answers
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Say you have decided to start a business producing and
selling $400 high-quality coats. Answer the...
If Fixed Costs are $40,000, the Selling price of the product is $400, and the Variable...
If Fixed Costs are $40,000, the Selling price of the product is $400, and the Variable Costs are $160, how many units would we need to sell to make a $50,000 profit?
Problem 6.39A ad Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800...
Problem 6.39A ad Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800 units of its product: Direct materials Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 124.600 35.600 30,000 53,400 37,500 by. Study Ronald Enterprises income tax rate is 10% Given that the selling price of one unit is $37, calculate how many units Ronald Enterprises would have to sell in order to break even Break-even units Assume...
Problem 6.39A a-d Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800...
Problem 6.39A a-d Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800 units of its product: Direct materials Direct labour Variable overhead $89,000 106,800 35,600 30,000 53,400 45,000 Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Ronald Enterprises' income tax rate is 40%. Given that the selling price of one unit is $36, calculate how many units Ronald Enterprises would have to sell in order to break even. Break-even units SHOW SOLUTION...
please show work, Thank you! Charlie is planning to start a business selling kitten mittens. He...
please show work, Thank
you!
Charlie is planning to start a business selling kitten mittens. He figured that the fixed costs would be: Cats Knitting Machine Warehouse Truck $100 $5,000 $ 10,000 $2,000 He also knows that variable cost (per unit) is: $2 Yarn Labor $1 He wants to sell a pair (unit) of kitten mittens for $15. Questions: 1) Frank, the potential investor, would like to know how many pairs of kitten mittens they have to sell to break...
If you were producing and selling wine at $5.00 per bottle with variable costs and expenses...
If you were producing and selling wine at $5.00 per bottle with variable costs and expenses of $3.00 per bottle and your total fixed operating costs and expenses were $100,000, how many bottles would you need to sell to break even?
Engineering Economics A manufacturing company is producing a product with variable cost of $6/unit, fixed costs of $70,000, and selling price of $13/unit. a. How many units should the company pro...
Engineering Economics
A manufacturing company is producing a product with variable cost of $6/unit, fixed costs of $70,000, and selling price of $13/unit. a. How many units should the company produce and how much must the sales be to break-even? b. Compute the Marginal Contribution Rate for this line of production. c. The manager demanded $100,000 profit, how many units must the company produce to reach the manager's goal if the variable cost per unit remains $6 and the price...
Lamar has the following data: Selling Price Variable manufacturing cost Fixed manufacturing cost Vartable selling &...
Lamar has the following data: Selling Price Variable manufacturing cost Fixed manufacturing cost Vartable selling & administrative costs Fixed selling & administrative costs $ 40 $ 22 $150.000 per month $120.000 per month How many units must Lamar produce and sell in order to break-even? O 8.333 units. O 12,500 units O 15.000 units O 22.500 units Search Windows
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales...
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44 Variable costs Manufacturing Selling 11 per unit 7 per unit Fixed costs Manufacturing Selling and administrative $160,000 per year $180,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Finch Corporation is a manufacturing company that makes small electric motors it sells for $48 per...
Finch Corporation is a manufacturing company that makes small electric motors it sells for $48 per unit. The variable costs of production are $28 per motor, and annual fixed costs of production are $310,000. Required How many units of product must Finch make and sell to break even? How many units of product must Finch make and sell to earn a $70,000 profit? The marketing manager believes that sales would increase dramatically if the price were reduced to $47 per...
Note: When entering answers in Blackboard, be sure to enter number of units as integers; always...
Note: When entering answers in Blackboard, be sure to enter number of units as integers; always round up units if they are not integers, costs/revenues/profits should be entered using two decimal places; losses should be entered as negative numbers. Be sure to format your cells in the Excel file to show two decimal places to determine if the value is an integer or not. M1 IND1. A firm is currently manufacturing and selling a product using Process X that has...
Problem 6.39A ad Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800 units of its product: Direct materials Direct labour Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 124.600 35.600 30,000 53,400 37,500 by. Study Ronald Enterprises income tax rate is 10% Given that the selling price of one unit is $37, calculate how many units Ronald Enterprises would have to sell in order to break even Break-even units Assume...
Problem 6.39A a-d Ronald Enterprises Ltd. has estimated the following costs for producing and selling 17,800 units of its product: Direct materials Direct labour Variable overhead $89,000 106,800 35,600 30,000 53,400 45,000 Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Ronald Enterprises' income tax rate is 40%. Given that the selling price of one unit is $36, calculate how many units Ronald Enterprises would have to sell in order to break even. Break-even units SHOW SOLUTION...
please show work, Thank
you!
Charlie is planning to start a business selling kitten mittens. He figured that the fixed costs would be: Cats Knitting Machine Warehouse Truck $100 $5,000 $ 10,000 $2,000 He also knows that variable cost (per unit) is: $2 Yarn Labor $1 He wants to sell a pair (unit) of kitten mittens for $15. Questions: 1) Frank, the potential investor, would like to know how many pairs of kitten mittens they have to sell to break...
Engineering Economics
A manufacturing company is producing a product with variable cost of $6/unit, fixed costs of $70,000, and selling price of $13/unit. a. How many units should the company produce and how much must the sales be to break-even? b. Compute the Marginal Contribution Rate for this line of production. c. The manager demanded $100,000 profit, how many units must the company produce to reach the manager's goal if the variable cost per unit remains $6 and the price...
Lamar has the following data: Selling Price Variable manufacturing cost Fixed manufacturing cost Vartable selling & administrative costs Fixed selling & administrative costs $ 40 $ 22 $150.000 per month $120.000 per month How many units must Lamar produce and sell in order to break-even? O 8.333 units. O 12,500 units O 15.000 units O 22.500 units Search Windows
Gibson Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $44 Variable costs Manufacturing Selling 11 per unit 7 per unit Fixed costs Manufacturing Selling and administrative $160,000 per year $180,600 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit...
Note: When entering answers in Blackboard, be sure to enter number of units as integers; always round up units if they are not integers, costs/revenues/profits should be entered using two decimal places; losses should be entered as negative numbers. Be sure to format your cells in the Excel file to show two decimal places to determine if the value is an integer or not. M1 IND1. A firm is currently manufacturing and selling a product using Process X that has...
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