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Company X operates on a contribution margin of 44% and currently has fixed costs of $510000. Next year, sales are projected to be $3100000. An advertising campaign is being evaluated that costs an additional $110000. How much would sales have to increase to justify the additional expenditure? (Round the final answer to the nearest dollar unit)
Company X presents the following information:
Based on this information, determine the total amount of manufacturing costs for the period.
Company X produces a part that is used in the manufacture of one of its products. The costs associated with the production of 15073 units of this part are as follows:
Direct materials
|
$85000
|
Direct labor
|
125000
|
Variable factory overhead
|
60000
|
Fixed factory overhead
|
135000
|
Total costs
|
$405000
|
Of the fixed factory overhead costs, $57985 is avoidable. Company Y has offered to sell 15073 units of the same part to Company X for $33 per unit. Assuming there is no other use for the facilities, Company X should (round the final answer to the nearest unit):
The following information is available for Company X:
How many units does Company X need to sell in order to increase the net income after taxes by $52500
For 2020, Company X uses machine-hours as the only overhead cost-allocation base. The direct cost rate is $3 per unit. The selling price of the product is $18. The estimated manufacturing overhead costs are $240000 and estimated 42500 machine hours. The actual manufacturing overhead costs are $274156 and actual machine hours are 50000. Using job costing, the 2020 actual indirect-cost rate is:
Company X is a nonprofit organization that supplies electric fans during summer for individuals in need. Fixed costs are $225000. The fans cost $28 each. The organization has a budgeted appropriation of $745061. How many people can receive a fan during summer? (Round the final answer to the nearest unit)
Company X's president has heard that there are multiple breakeven points for every product. He does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2020 is as follows:
Total fixed manufacturing overhead
|
$183000
|
|
Total other fixed expenses
|
$202000
|
|
Total variable manufacturing expenses
|
$260000
|
|
Total other variable expenses
|
$290000
|
|
Units produced
|
70000
|
units
|
Budgeted production
|
70000
|
units
|
Units sold
|
50000
|
units
|
Selling price
|
$88
|
What are breakeven sales in units using variable costing? (Round to the nearest unit)
Company X ends the month with two jobs still in progress. Job 5 has $10000 of materials, $2000 of direct labor and $8814 of manufacturing overhead allocated. Job 6 was $30000 of materials, $2000 of direct labor and $10000 of manufacturing overhead allocated. The cost of goods sold for the month was $40000 and of that 30% was overhead. There were no finished goods in stock as the month ends. If the manufacturing overhead is underallocated by $10000, which of the following choices would be the correct way to prorate it, assuming the proration is based on the allocated overhead in the ending balances of work-in-process, finished goods, and cost of goods sold?
John's 8-year-old Car requires repairs estimated at $11000 to make it road worthy again. His wife suggested that he should buy a 5-year-old used Jeep instead for $11000 cash. Estimated costs for the two cars are the following:
|
8-yr-old Car
|
Jeep
|
Acquisition cost
|
$30000
|
$11000
|
Repairs
|
$11000
|
—
|
Annual operating costs
|
|
|
(Gas, maintenance, insurance)
|
$2491
|
$2174
|
What should John do? What are his savings in the first year?
Company X sells only two products, Product A and Product B.
|
Product A
|
Product B
|
Total
|
Selling price
|
$50
|
$20
|
|
Variable cost per unit
|
$17
|
$10
|
|
Total fixed costs
|
|
|
$2392684
|
Company X sells two units of Product A for each unit it sells of Product B. Company X faces a tax rate of 30% and desires a net after-tax income of $63000. The number of units that Company X must sell to achieve its net income objective would be (round to the nearest unit):