Homework Answers
A) Breakeven point in units = Fixed cost/Contribution margin per unit
Contribution margin per unit = Sales price per unit - Variable costs per unit = 120-75 = 45 per unit
= 155,250/45
= 3,450 units
B) Breakeven point in dollars = Fixed cost/Contribution margin ratio
Contribution margin ratio = Contribution margin per unit /Sales price per unit = 45/120 = 37.5%
= 155,250/37.5%
= $414,000
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absorption costing True False QUESTION 15 A company manufactures a product and sells for $120 ume...
6. Lynch Company manufactures and sells a single product. The following costs were incurred during the...
6. Lynch Company manufactures and sells a single product. The
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operations:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
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Prepare income statement using variable costing
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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's...
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8. Walsh Company manufactures and sells one product. Thefollowing information pertains to each of the...
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years of operations:During its first year of operations, Walsh produced 50,000 units
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6. Lynch Company manufactures and sells a single product. The
following costs were incurred during the company’s first year of
operations:
1. Assume that the company uses absorption costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
2. Assume that the company uses variable costing:
a. Compute the unit product cost.
b. Prepare an income statement for the year.
a IMG_0322.jpg Search ich Company manufactures and sells a single product. The following costs were...
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Dodner Company uses an absorption costing system in accounting for the single product it manufactures. The following selected data are for the year 2020: Sales (20,000 $720,000 units) Direct materials $259,200 used Direct labor $86,400 costs Variable manufacturing $25,920 overhead Fixed manufacturing $34,560 overhead Variable selling and $43,200 administrative expenses Fixed selling and $144,000 administrative expenses The company produced 24,000 units and sold 20,000 units in 2020. Direct materials and direct labor are variable costs. One unit of direct material...
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8. Walsh Company manufactures and sells one product. The
following information pertains to each of the company’s first two
years of operations:During its first year of operations, Walsh produced 50,000 units
and sold 40,000 units. During its second year of operations, it
produced 40,000 units and sold 50,000 units. The selling price of
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