Homework Answers
| 1. Complete Totals column | ||||||
| 3/4 inch | 1 inch | Total | ||||
| Units | 275000 | 200000 | 475000 | |||
| Sale price | $55 | $75 | $30,125,000 | |||
| Direct material | 15 | 21 | $8,325,000 | |||
| Direct labour | 5 | 10 | $3,375,000 | |||
| Manufacturing overhead | 17 | 22 | $9,075,000 | |||
| Gross profit | 37 | 53 | $20,775,000 | |||
| Selling, general & admin | 7 | 5 | $2,925,000 | |||
| Operating profit | 11 | 17 | 6425000 | |||
| 2. Weighted average contribution margin | ||||||
| Contribution per unit | $18 | $22 | (sales-direct materail-labour-overhead) | |||
| (275000/475000)*18+(200000/475000)*22= | 19.68 | |||||
| 3. Break even point= Fixed cost/Weight average contribution margin per unit | ||||||
| Fixed cost | 2925000 | |||||
| WACM | 19.68 | |||||
| BEP (units) | 148628.05 | units |
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Problem #2: CVP Analysis Sharon McFarland has just earned a degree in management from a prestigious...
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Problem #2: CVP Analysis Sharon McFarland has just earned a degree in management from a prestigious university in the United Kingdom. She has taken a position as assistant to the president at Johnson Engineering, which manufactures tungsten carbide drill bits for the gold mining industry. Johnson produces two types of bits: a X diameter and a 1" diameter model. The manufacturing takes place in three departments. Tip-fabricating makes the tungsten carbide drill tips out of powdered wolfram. The forging department...
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Solution: Show your your analysis in organized schedules as much as possible. A schedule for completing Requirement #1 is provided for you. Be sure to properly link cells and use formulas where applicable. Requirement 1: Scenario 1 Scenario 2 Scenario 3 Current Year $35.00 43,000 4 Problem B (26 points): 5 Block Ltd makes BLOCKS. Their pre-tax income and their margin of safety have both been low 6 compared to the levels the company would...
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Need help with the accounting problem.
Required information Problem 21-6A Analysis of price, cost, and volume changes for contribution margin and net income LO P2, A1 (The following information applies to the questions displayed below.] This year Burchard Company sold 40,000 units of its only product for $17.00 per unit. Manufacturing and selling the product required $125,000 of fixed manufacturing costs and $185,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on...
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