Homework Answers
| A | ||
| Price per unit | 22 | |
| Less: Variable costs | 20 | =240000/12000 |
| Contribution margin per unit | 2 | |
| Yes, accept the special order | ||
| B | ||
| Contribution Margin Income Statement | ||
| Incremental revenue | 132000 | =6000*22 |
| Variable costs | 120000 | =6000*20 |
| Contribution profit | 12000 | |
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Vernon Company, which produces and sells a small digital clock, bases its pricing strategy on a...
Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a...
Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow: $150,000 50,000 Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) 200,000 50,000 $250,000 25 Sales price per unit (b 10,000) Required a. Benson has excess capacity and receives a special order for 7,000 clocks...
Adams Company, which produces and sells a small digital clock, bases its pricing strategy on a...
Adams Company, which produces and sells a small digital clock,
bases its pricing strategy on a 25 percent markup on total cost.
Based on annual production costs for 12,000 units of product,
computations for the sales price per clock follow:
Adams has excess capacity and receives a special order for 5,000
clocks for $22 each. Calculate the contribution margin per unit.
Based on this, should Adams accept the special order?
Prepare a contribution margin income statement for the special
order....
Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a...
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NEED HELP WITH ALL PARTS PLS
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Benson Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 10,000 units of product, computations for the sales price per clock follow: $150,000 50,000 Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (b) 200,000 50,000 $250,000 25 Sales price per unit (b 10,000) Required a. Benson has excess capacity and receives a special order for 7,000 clocks...
Adams Company, which produces and sells a small digital clock,
bases its pricing strategy on a 25 percent markup on total cost.
Based on annual production costs for 12,000 units of product,
computations for the sales price per clock follow:
Adams has excess capacity and receives a special order for 5,000
clocks for $22 each. Calculate the contribution margin per unit.
Based on this, should Adams accept the special order?
Prepare a contribution margin income statement for the special
order....
Hensely Company, which produces and sells a small digital clock, bases its pricing strategy on a 25 percent markup on total cost. Based on annual production costs for 25,000 units of product, computations for the sales price per clock follow. Unit-level costs Fixed costs Total cost (a) Markup (a x 0.25) Total sales (6) Sales price per unit (b = 25,000) $240,000 60,000 300,000 75,000 $375,000 $ 15 Required a. Hensely has excess capacity and receives a special order for...
Required information [The following information applies to the questions displayed below.] Vernon Company makes and sells products with variable costs of $56 each. Vernon incurs annual fixed costs of $39,900. The current sales price is $77. e. If fixed costs drop to $22,800, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs...
NEED HELP WITH ALL PARTS PLS
Vernon Corporation makes and sells state-of-the-art electronics products. One of its segments produces The Math Machine, an Inexpensive calculator. The company's chief accountant recently prepared the following Income statement showing annual revenues and expenses associated with the segment's operating activities. The relevant range for the production and sale of the calculators is between 33,000 and 71,000 units per year. $423,00 Revenue (47,eee units x $9) Unit-level variable costs Materials cost (47,080 x $2) Labor...
Calla Company produces skateboards that sells for $61 per
unit
Calla Company produces skateboards that sell for $61 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 80,300 skateboards per year. Annual costs for 80,300 skateboards follow Direct materials Direct labor Overhead Selling expenses Administrative expenses Total costs and expenses $ 931, 480 714,670 952.000 543,000 463,000 $3,604,150 543.000 A new retail store has offered to buy 14,700 of its skateboards for...
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Vernon Chemical Company makes a variety of cosmetic products, one of which is a skin cream designed to reduce the signs of aging. Vernon produces a relatively small amount (18,000 units) of the cream and is considering the purchase of the product from an outside supplier for $5.90 each. If Vernon purchases from the outside supplier, it would continue to sell and distribute the cream under its own brand name. Vernon's accountant constructed the following profitability analysis: Revenue (18,000 units...
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