The following data are available for product no. CK74, manufactured and sold by Ruby Corporation: Maximum capacity with present facilities 3,500 units Total fixed cost (per period) $ 798,000 Variable cost per unit $ 115.00 Sales price per unit $ 185.00 The number of units of CK74 that Ruby must sell to break- even is:
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Variable costs: These are the costs that proportionately change with the changes in the activity…
Q: Glover Inc. manufactures Product B, incurring variable costs of $15.00 per unit and fixed costs of…
A: Answer a) Calculation of Markup percentage Markup Percentage = Desired Profit/ Total Cost Markup…
Q: Company XYZ produced 1,000 units of product A. At this level, the variable manufacturing costs were…
A: Variable cost is a cost that changes with the change in the level of unit productions. Fixed cost is…
Q: Problem 3-39 (Part Level Submission) Crane Industries sells two electrical components with the…
A: The calculation of Break-even units are shown below: Thus, Break-even units for XL-709 is 108,500…
Q: M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700…
A: Economic order quantity:- It refers to the fixed order quantity that minimizes the total ordering…
Q: Required nforma [The following information applies to the questions displayed below.] Oslo Company…
A: Degree of operating leverage = Contribution / Operating income
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution margin per unit is determined by subtracting the variable cost per unit less the sales…
Q: The following data are available for product number CK74, manufactured and sold by Ruby Corporation:…
A: Lets understand the basics. Contribution is a amount remain of sales after deducting variable cost…
Q: of Product X per production runt for a total of 15 production runs per year. The company is…
A: The economic order quantity model is the best way of inventory management wherein the company orders…
Q: Johnson Company makes two products: Carpet Kleen and Floor Deodorizer. Operating information from…
A: Key factor is such factor of production that limits the manufacturing of goods to a limited number.
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…
Q: How would I work this problem?
A: Break-even point is a no loss no profit point for the company. Break even units of sales is that…
Q: [The following information applies to the questions displayed below.] The following data are…
A: Sales revenue: It is the revenue earned by an organization on selling the products to the outsiders.…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: Break even point is computed by dividing the fixed cost by contribution per unit. Fixed cost=$2250…
Q: Accents Associates sells only one product, with a current selling price of $150 per unit. Variable…
A: Contribution margin is the sales revenue over and above variable costs. Contribution margin ratio is…
Q: Oslo Company prepared the following contribution format income statement based on a sales volume of…
A: >Degree of Operating Leverage measure how much the net operating income is sensitive to the…
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: The contribution margin income statement is prepared by deducting the amount of variable expenses…
Q: 1) Pungent Corporation manufactures and sells a spice rack. Shown below are the actual operating…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The contribution margin that the company would disclose on an absorption-costing income statement…
A: Total variable cost = Variable production cost + variable selling and admin cost = 4 + 1 = P5 per…
Q: XYZ Company incurred total fixed cost OMR 5000, total Variable cost OMR 200000 for the units…
A: Variable costs are costs that changes with change in level of activity. Fixed costs are costs that…
Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…
A: Increase (decrease) in cost = (Variable cost per unit - Purchase cost per unit) x no. of units
Q: Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Blanchard Company manufactures a single product that sells for $120 per unit and whose total…
A: Contribution margin per unit = Selling price - Variable costs Contribution margin per unit = $120 -…
Q: The S Company provides you with the following information on its products: Unit selling price Unit…
A: Contribution margin analysis is made to determine the point of sale at which the firm may generate…
Q: Use this information for Falcon Co. to answer the question that follow. Falcon Co. produces a…
A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…
Q: The cost data is given below for Sohar Company. Variable cost per unit: OMR 8 Initial…
A: Variable cost=Total units×Per unit cost=(15000+4000)×OMR 8+OMR 2=OMR 190000
Q: ABC Company manufactures two products, namely product A and product B. Data for two products in…
A: in order to calculate the break even point of two product the first step is to determine the…
Q: Porvide answer in table format Cobe Company has already manufactured 19,000 units of Product A at a…
A: Product A = 19000 units Unit variable cost = $25 per unit Total variable costs = 19000 * $25 = $…
Q: (b) Ahmed Manufacturing LLC is a specialty component manufacturer with idle capacity. Management…
A: Formulas: a.2) Such costs are relevant for the purpose of decision-making as these are computing by…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Contribution: The term contribution or contribution margin in costing is the sales less variable…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Break-even point is that point at which a company is making no profit no loss. In other words at…
Q: Smooth Move Company manufactures professional paperweights and has been approached by a new customer…
A:
Q: Required information [The following information applies to the questions displayed below] Oslo…
A: The degree of operating leverage is calculated to measure the change in the operating income due to…
Q: Required information [The following information applies to the questions displayed below.) Each of…
A: Under make or buy decisions, business has to choose between two alternatives, one is to manufacture…
Q: Lucifer Company sells its product A at a selling price of P42 per unit. Lucifer’s costs per unit…
A: Answer a) Calculation of minimum selling price per unit Minimum selling price should be based on…
Q: Your Company sells 3 products, A, B and C that use the same company, facility and resources. Details…
A: Contribution is the difference between sales price of the product and variable cost incurred while…
Q: ! Required information [The following information applies to the questions displayed below] Oslo…
A: Cost-volume profit analysis is a tool that helps in decision making by establishing a relationship…
Q: Grey Inc. has been purchasing a component, Z for $85 a unit. The company is currently operating at…
A: Grey inc. is in the situation of make/buy decision. That plan under which per unit cost is less is…
Q: Required information (The following information applies to the questions displayed below] Astro…
A: New variable cost per unit = $32 x 60% = $19.2 New total fixed cost = $82,400 + $149,000 = $231,400…
Q: Bolman Inc has only variable costs and fixed costs. A review of the company's records disclosed that…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A: Operating leverage: Operating leverage refers to the measurement of the degree of the variable and…
Q: Required information [The following information applies to the questions displayed below.] Oslo…
A:
Q: The S Company provides you with the following information on its products: Unit selling price Unit…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Basu Company produces 22,000 units of…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Required information [The following information applies to the questions displayed below] Oxford…
A: 1. Thames division of Oxford Company is "Supplier of components (Product)" for one of the inhouse…
Q: The cost data is given below for Sohar Company. Variable cost per unit: OMR 8 Initial fixed cost :…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Response containing written narrative, figures, and charts. Milano Co. manufactures and sells…
A: The breakeven point is the amount of production at which a product's expenses equal its revenues.…
Required information
Skip to question
[The following information applies to the questions displayed below.]
The following data are available for product no. CK74, manufactured and sold by Ruby Corporation:
Maximum capacity with present facilities | 3,500 | units | ||
Total fixed cost (per period) | $ | 798,000 | ||
Variable cost per unit | $ | 115.00 | ||
Sales price per unit | $ | 185.00 | ||
The number of units of CK74 that Ruby must sell to break- even is:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- The following data are available for product number CK74, manufactured and sold by Ruby Corporation: Maximum capacity with present facilities Total fixed cost (per period) Variable cost per unit Sales price per unit The contribution margin per unit for product number CK74 is: Multiple Choice $39.00 $70.00. $158.00. $61.00. 7,500 units $ 819,000 $123.00 $ 193.00[The following information applies to the questions displayed below.] The following data are available for product no. CK74, manufactured and sold by Ruby Corporation: Maximum capacity with present facilities 3,500 units Total fixed cost (per period) $ 798,000 Variable cost per unit $ 115.00 Sales price per unit $ 185.00 The contribution margin per unit for product no. CK74 is:Alba Company is considering the introduction of a new product. To determine the selling price of this product, you have gathered the following information: • Direct material cost per unit Direct labor cost per unit • Variable manufacturing cost per unit Total fixed manufacturing costs.. • Variable selling and administration cost per unit Total fixed selling and administration costs.. .$3,000 .$2,250 ..S1,000 .S1,750,000 ..$1,250 .$550,000 If the company requires a rate of return 18% on its investments and $6,000,000 investments are needed. The total direct materials to be used in the production is $3,000,000. Required: 1. If the company uses absorption costing approach to cost-plus pricing, compute: a. The unit product cost. b. The markup percentage. c. The selling price per unit. 2. Assume that the company is considering the introduction of other new product. If the target-selling price per unit is $5,500 and the company investing $5,000,000 to purchase equipment needed produce 500…
- ABC Company manufactures two products, namely product A and product B. Data for the two products in mentioned below: Sales volume in units Sales price per unit Variable costs per unit Product A Product B 400 600 $750 $1,000 $300 $450 Determine the number of units of both the products to be produced at break-even level, assuming total fixed costs are $264,000. (Round intermediate calculations and final answer to zero decimal places.) Answer Choices: a. Break-even units for product A and product B are 207 units and 311 units respectively. b. Break-even units for product A and product B are 216 units and 324 units respectively. c. Break-even units for product A and product B are 207 units and 310 units respectively. d. Break-even units for product A and product B are 215 units and 324 units respectively.Required information [The following information applies to the questions displayed below] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses $ 10,000 5,500 4,500 2,250 Net operating income 2,250 12. What is the degree of operating leverage? (Round your answer to 2 decimal places.) Degree of operating leverageThe following information relates to the operations of a company; cost per unit from supplier- GH¢80, variable cost per unit GHC40 and total fixed cost of GHC300000. The company determines its selling price by adding a margin of 20%. What is the breakeven quantity? A. 5556units B. 6665units OC. 5000units D. 6000units
- The XYZ Company produces and sells two products: The Riffs and The Raffs. Below is revenue and cost information to facilitate the development of a basic segmented income statement. Product Riffs Raffs Sales Price per unit $8.00 6.00 Variable Cost per unit $3.20 3.00 Traceable Fixed Costs $62,000 $44,000 It is expected that the company will incur $21,000 of common fixed expenses and unit sales are expected to be 12,000 of Riffs and 18,000 of Raffs. Required: Construct a Contribution Format Income Statement segmented by product line and company total.! Required information [The following information applies to the questions displayed below.] Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses Contribution margin Fixed expenses Net operating income $ 15,000 9,000 6,000 3,120 $ 2,880 12. What is the degree of operating leverage? Note: Round your answer to 2 decimal places. Degree of operating leverageThe following table shows the cost data is for Dhofar Company. Variable cost per unit: OMR 8.5 Initial fixed cost: OMR 30000 Unit produces and Sold: 20000 units What is the total cost to Dhofar Company if additional 12000 units have been produced with additional fixed cost of OMR S500 and with an increase of 1.5 OMR in unit variable cost? Select one: a. 307500 b. 355500 c. None of the options d. 320000
- Morrill Company produces two different types of gauges: a density gauge and a thickness gauge. The segmented income statement for a typical quarter follows. Includes depreciation. The density gauge uses a subassembly that is purchased from an external supplier for 25 per unit. Each quarter, 2,000 subassemblies are purchased. All units produced are sold, and there are no ending inventories of subassemblies. Morrill is considering making the subassembly rather than buying it. Unit-level variable manufacturing costs are as follows: No significant non-unit-level costs are incurred. Morrill is considering two alternatives to supply the productive capacity for the subassembly. 1. Lease the needed space and equipment at a cost of 27,000 per quarter for the space and 10,000 per quarter for a supervisor. There are no other fixed expenses. 2. Drop the thickness gauge. The equipment could be adapted with virtually no cost and the existing space utilized to produce the subassembly. The direct fixed expenses, including supervision, would be 38,000, 8,000 of which is depreciation on equipment. If the thickness gauge is dropped, sales of the density gauge will not be affected. Required: 1. Should Morrill Company make or buy the subassembly? If it makes the subassembly, which alternative should be chosen? Explain and provide supporting computations. 2. Suppose that dropping the thickness gauge will decrease sales of the density gauge by 10 percent. What effect does this have on the decision? 3. Assume that dropping the thickness gauge decreases sales of the density gauge by 10 percent and that 2,800 subassemblies are required per quarter. As before, assume that there are no ending inventories of subassemblies and that all units produced are sold. Assume also that the per-unit sales price and variable costs are the same as in Requirement 1. Include the leasing alternative in your consideration. Now, what is the correct decision?Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.Brissett Corporation makes three products that use the current constraint, which is a particular type of machine. Data concerning those products appear below: GK LQ XK Selling price per unit $ 326.09 $ 543.35 $ 518.00 Variable cost per unit $ 252.04 $ 420.85 $ 397.70 4.10 8.10 8.00 Time on the constraint (minutes) Required: 1. Rank the products in order of their current profitability from the most profitable to the least profitable. In other words, rank the products in the order in which they should be emphasized. 2. Assume that sufficient constraint time is available to satisfy demand for all but the least profitable product. Up to how much should the company be willing to pay to acquire more of the constrained resource? (Round your answer to 2 decimal places.)