A company is uncertain how many units of a new product can be sold each year. To determine its sensitivity to varying annual sales volumes, cost estimates for manufacturing the product were found to be as follows: Direct materials = $4.50 perunit Direct labor = $10.25perunit Overhead = $25,000 + P3.10 per unit In addition, new equipment costing $150,000 will be needed. It is expected that it would be used for 10 years with a salvage value of $25,000 at the end of that time. A market study indicates that the product will sell $25.00 per unit. If money is worth 12% to the company before taxes, determine the rate of return for annual sales volume of 4,000 units  Choices are: A. 14.31% B. 2.42% C. 11.95% D. 26.25%

Q: A manufacturer is considering whether to make or buy a component used in its production. The annual…

A: Formula for total cost: Total cost = Variable cost + Reduced fixed cost

Q: A company is uncertain how many units of a new product can be sold each year. To determine its…

A: the Capital asset pricing model is a model that is used for the calculation of the cost of equity of…

Q: For the coming year, Belton Company estimates fixed costs of $60,000, the unit variable cost of $25,…

A: Break-even point: It implies to a level of production at which the business incurs no losses or…

Q: For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21,…

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Determine the annual breakeven quantity for the (a) Current system and (b) the new system. (b) Plot…

A: •Break even point = fixed cost / contribution per unit  •Contribution per unit = selling price per…

Q: CNR Computer is considering moving some of its operations overseas in order to reduce labour costs.…

A: Production Cost- Production costs are the expenses incurred by a manufacturer while producing a…

Q: Two different manufacturing processes are being consideredfor making a new product. The first…

A: The question is based on concept of break even point or break even sales to compare two production…

Q: A business is operating at 90% of capacity and is currently purchasing a part used in its…

A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…

Q: Robeson Company estimates it will produce and sell 3,000 units next month. Data on costs follows:…

A: The operating income is calculated as difference between sales revenue and total expenses.

Q: Spring Manufacturing sold 610,000 units of its product for $98 per unit in 2019. Variable cost per…

A: Contribution margin = Sales - Variable costs Operating income = Contribution margin  - Fixed costs

Q: Cabin Creek Company is considering adding of a new line of kitchen cabinets. The company's…

A: Introduction:- Contribution margin is the difference between sales revenue and variable costs…

Q: A company that manufactures and sells one single product is currently operating at 85% of full…

A: Operating full capacity = Currently no. of units producing / % capacity operating = 102000 units /…

Q: FDE Manufacturing Company has a normal plant capacity of 75,000 units per month. Because of an extra…

A: Answer) FDE Manufacturing Company Proposal to Sell to Exporter April 21, 20XX…

Q: Mary Williams, owner of Williams Products, is evaluatingwhether to introduce a new product line.…

A: “Since you have asked multiple questions, we will solve the first three questions for you. If you…

Q: An automobile company needs to decide of outsourcing shafts or producing shafts in the company. If…

A: An automobile needs to decide of outsourcing or producing shafts in the company. Outsourcing shafts…

Q: For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of…

A: a)  Prepare Break-even chart: 4800 units Operating Loss area 12000 units Break-even point…

Q: Carey Company had sales in 2019 of $1,609,400 on 61,900 units. Variable costs totaled $866,600, and…

A: Contribution margin is the excess of sales over variable cost. It is the part of the selling price…

Q: Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin…

A: Determine contribution margin per unit (After investment).

Q: Sinbo Electronics is trying to reduce supply chain risk by making more responsible make-buy…

A: Break-even quantity is that level of sales at which the company earns zero profit and incurs zero…

Q: The market price for a product has been $50 per unit, but competitive pressures have reduced…

A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…

Q: A manufacturer predicts fixed costs of $502,000 for the next year. Its one product sells for $180…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

Q: A company is uncertain how many units of a new product can be so each year. To determine its…

A: Rate of return is computed by dividing the net profit by the investment.

Q: In a new, highly automated factory, labor costs are expected to decrease at an annual rate of 5%;…

A: The value of labor, material and energy costs during the fifth year are $2,443,518.75, $2,524,953.92…

Q: Annually (10000) units of a product are sold at a price of (12) $/unit, if the fixed costs is…

A: The question is based on the concept of Cost Accounting.

Q: Key Corporation is considering the addition of a new product. The expected cost and revenue data for…

A: Break-even analysis is a technique used widely by the production management. It helps to determine…

Q: company is producing a high-volume item that sells for PhP 0.75 per unit. The variable production…

A: Solution: Part a) Annual savings from the purchase of the new machine will be given as follows: The…

Q: The Bremer Co. manufactures cordless telephones Bremer is planning to implement a JIT production…

A: JIT production system stands for just in time production represents the situation where the…

Q: Frieden’s management is considering a major upgrade to the manufacturing equipment, which would…

A: The contribution income statement is the statement that shows the contribution margin and the…

Q: For the coming year, Cleves Company anticipates a unit selling price of $92, a unit variable cost of…

A: Introduction: Break even sales units: It tells the level of sales where there is no profit nor loss…

Q: Booth Company had sales in 2020 of $1,875,000 on 75,000 units. Variable costs totaled $1,125,000 and…

A: Cost volume profit analysis is the technique used by the management for decision-making. The methods…

Q: Simpkins Ltd is currently experiencing a shortage of skilled labour. In the coming quarter only…

A: When some input is in limited capacity , then we need to find out contribution per input. For…

Q: For the coming year, Cleves Company anticipates a unit selling price of $100, a unit variable cost…

A: 1. Calculate the anticipated break-even sales in units.

Q: The Gizmo Manufacturing Company is considering making and selling a new product. The following data…

A: Break-Even Sales: Sales volume required to cover the fixed and variable costs and left out with…

Q: The total fixed costs per year for the company are $674,000.   Required: a. What is the…

A: For calculating the break even sale with different products , we need use the following formula :-…

Q: Sparrow Co. is currently operating at 80% of capacity and is currently purchasing a part used in its…

A: Differential cost means diff. between the cost of two alternative decisions i.e. either the firm has…

Q: Stripe Company has been purchasing a component, Part Q, for P19.20 per unit. Stripe is currently…

A: Make or Buy decision: The analysis of difference in manufacturing cost or to purchase the product is…

Q: SOWSEY Company is considering the addition of a new product to its current product lines. The…

A: Solution: Lowest selling price per unit could be charged to product and still make additional P2 per…

Q: Harrison Co. expects to sell 200,000 units of its product next year, which would generate total…

A:

Q: Markson had the following results of operations for the past year (shown in picture). A foreign…

A: A special order is a one-time business opportunity that requires a large quantity at a low price. To…

Q: What is the margin, turnover and ROI if the existing company performs the same next year AND it adds…

A: Ratio are the sub set, which is the group of metrics used for measuring the profitability as well as…

Q: Company experts in Cars and can produce at most 900 units per month. Its current monthly production…

A: The contribution margin is computed by subtracting the variable cost from the selling price of the…

Q: Prepare a projected CVP income statement for 2020 assuming the changes have not been made

A: Solution:- Preparation of projected CVP income statement for 2020 assuming the changes have not been…

Q: raceable annual fixed costs: Production $51,000 Selling $75,000 Allocated annual fixed cost $54,000…

A: Net profit refers to the total sum value of money earned by an entity after deducting all the…

Q: For the coming year, Loudermilk Inc. anticipates fixed costs of $600,000, a unit variable cost of…

A: Operating profit is calculated as:                  Sales price per unit * sales unit  Less:…

Q: How much is the break-even point in units?

A: Break Even Point in Units = Fixed Costs / Contribution Per Unit Fixed Costs = $164500 Contribution…

Q: The following are data from a production, calculate; a. The Break-even point in terms of sales value…

A: During the manufacturing and sale of goods and services, the determination of the break-even point…

Q: Colin Company manufactures a single product. In the prior year, the company had sales of P90,000,…

A: Sales P90,000 Variable costs -P50,000 Contribution Margin  P40,000 Fixed costs -P30,000…

Q: Wayne Inc. expects to maintain the same inventories at the end of the year as the beginning of the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Factors Affecting Housing Decision