1a. A guy in a revenue firm is paid the equivalent of 2 months sales revenue...
1a. A guy in a revenue firm is paid the equivalent of 2 months sales revenue for each new customer added. The charge for the service is $120 per month, and providing the service costs the company $50 per month per customer. It costs $25 to hook each new customer. What would be the effect on this month’s expenses if the salesperson added 55 new customers this month?
1b. An assembly line can produce 125 units per hour and the material cost is $15 per unit. A single employee, who is paid $22 per hour, can operate the assembly line. The employee works an 8 hour day and there are 20 workdays in a month. The company’s contribution to Social Security is 7.65 percent of employee pay, and benefits cost the company about $565 per month per employee. Maintenance on the assembly line costs $1,000 per month. What is the total cost of producing the product for one month?
1c. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 1d.Given the information in problem 1c, if the profit contribution after variable expenses is $125 per unit, is the firm making a profit if it produces and sells 1,000 units per year? (Explain) 1e. If a firm’s total material cost increases by $150,000 when the level of production increases by 7,500 units, what is the variable cost on a per unit basis?
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1a. A guy in a revenue firm is paid the equivalent of 2 months
sales revenue...
1a.If a product can be sold for $2,000 per unit and the variable cost per unit...
1a.If a product can be sold for $2,000 per unit and the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 1b. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer’s share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?...
1. If a product can be sold for $2,000 per unit, the variable cost per unit...
1. If a product can be sold for $2,000 per unit, the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 2. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer's share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 6. Given the information in problem 5, if the profit contribution after variable...
1. If a product can be sold for $1,000 per unit, the variable cost per unit...
1. If a product can be sold for $1,000 per unit, the variable cost per unit is $550, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 2.If an employee has a salary of $50,000 per year, benefits cost the company $7,200 per employee per year, and the employer’s share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?
its in hours 2. A manufacturer of vacuum cleaners produces three models of canister-style vacuum cleaners-the...
its
in hours
2. A manufacturer of vacuum cleaners produces three models of canister-style vacuum cleaners-the X-100, X-200, and X-300-on a production line with three stations-motor assembly, final assembly, and test. The line is highly automated and is run by three operators, one for each station. Data on production times, material cost, sales price, and bounds on demand are given in the following tables: Product Material Cost ($/Unit) Price $/Unit) Minimum Demand Maximum Demand (Units per Month) (Units per Month)...
Required information (The following information applies to the questions displayed below.] Spiffy Shades Corporation manufactures artistic...
Required information (The following information applies to the questions displayed below.] Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 3.0 hours to 2.75 hours. Labor-related costs include pension contributions of $1.05 per hour, workers' compensation insurance of $0.75 per...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 2,400,000 40% Contribution margin $600 3,600,000 60% Fixed costs 2,400,000 Profit $1,200,000 Break-even units = $2,400,000 ÷ 600 = 4,000 Break-even sales = 4,000 × $1,000...
Question 1 1 pts Carney's current income statement shows the following: $500,000 Sales revenue Cost of...
Question 1 1 pts Carney's current income statement shows the following: $500,000 Sales revenue Cost of goods sold Variable costs Fixed costs Gross profit Selling and administrative expenses Variable costs Fixed costs $150,000 150,000 300,000 200,000 100,000 50,000 150,000 $50,000 Net income What is Carney's margin of safety? $125,000 $100,000 $50,000 $166,667 Question 2 1 pts Truman Company has developed a new gadget with the following cost information Variable manufacturing costs: $25 per unit Fixed manufacturing costs: $60,000 Variable selling...
Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last b
Stark Company has five employees. Employees paid by the hour earn $10 per hour for the regular 40-hour workweek and $15 per hour beyond the 40 hours per week. Hourly employees are paid every two weeks, but salaried employees are paid monthly on the last biweekly payday of each month. FICA Social Security taxes are 6.2% of the first $137,700 paid to each employee, and FICA Medicare taxes are 1.45% of gross pay. FUTA taxes are 0.6% and SUTA taxes...
MARGINAL COSTING EXERCISES (Original Fl file: 26 KT-perus.xls2) 1. Marginal cost statement Sales revenue less Variable...
MARGINAL COSTING EXERCISES (Original Fl file: 26 KT-perus.xls2) 1. Marginal cost statement Sales revenue less Variable costs = Contribution less Fixed costs Profit units 1.000 1,000 1,000 per unit 100 60 total € 100,000 € 60,000 € 40,000 30,000 € 10,000 € 40 Calculate the following: Contribution-% 40% 75,000 Break-even point in € B/E in unit Safety margin in € Safety margin-% 750 25,000 25% 2 2nd company's variable costs are and fixed monthly costs in euros are 70% of...
1. If a product can be sold for $2,000 per unit, the variable cost per unit is $650, and fixed costs are $2 million, how many units must be produced and sold before the firm can break even? 2. If an employee has a salary of $75,000 per year, benefits cost the company $7,200 per employee per year, and the employer's share of the Social Security tax is 7.65 percent, what is the direct cost per year for this employee?...
5. Facility rent is $2,000 per month, accounting services cost $2,600 per month, insurance is $1,100 per month, and utilities such as phone and electricity cost $550 per month. The manager is paid $89,000 per year, gets benefits worth $6,500 per year, and the Social Security contribution is 7.65 percent. Given this information, what is the amount of annual fixed expense that this company has to pay? 6. Given the information in problem 5, if the profit contribution after variable...
its
in hours
2. A manufacturer of vacuum cleaners produces three models of canister-style vacuum cleaners-the X-100, X-200, and X-300-on a production line with three stations-motor assembly, final assembly, and test. The line is highly automated and is run by three operators, one for each station. Data on production times, material cost, sales price, and bounds on demand are given in the following tables: Product Material Cost ($/Unit) Price $/Unit) Minimum Demand Maximum Demand (Units per Month) (Units per Month)...
Required information (The following information applies to the questions displayed below.] Spiffy Shades Corporation manufactures artistic frames for sunglasses. Talia Demarest, controller, is responsible for preparing the company's master budget. In compiling the budget data for 20x1, Demarest has learned that new automated production equipment will be installed on March 1. This will reduce the direct labor per frame from 3.0 hours to 2.75 hours. Labor-related costs include pension contributions of $1.05 per hour, workers' compensation insurance of $0.75 per...
Question 1 1 pts Carney's current income statement shows the following: $500,000 Sales revenue Cost of goods sold Variable costs Fixed costs Gross profit Selling and administrative expenses Variable costs Fixed costs $150,000 150,000 300,000 200,000 100,000 50,000 150,000 $50,000 Net income What is Carney's margin of safety? $125,000 $100,000 $50,000 $166,667 Question 2 1 pts Truman Company has developed a new gadget with the following cost information Variable manufacturing costs: $25 per unit Fixed manufacturing costs: $60,000 Variable selling...
MARGINAL COSTING EXERCISES (Original Fl file: 26 KT-perus.xls2) 1. Marginal cost statement Sales revenue less Variable costs = Contribution less Fixed costs Profit units 1.000 1,000 1,000 per unit 100 60 total € 100,000 € 60,000 € 40,000 30,000 € 10,000 € 40 Calculate the following: Contribution-% 40% 75,000 Break-even point in € B/E in unit Safety margin in € Safety margin-% 750 25,000 25% 2 2nd company's variable costs are and fixed monthly costs in euros are 70% of...
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