Cost volume profit analysis, Cost Accounting

Cost Volume Profit Analysis

1. Post Publishers has collected the following data for recent months:

Month                 Issues published              Total cost
May                        20,500                           $18,100
June                       22,300                             19,630
July                       18,700                              16,570
August                    21,200                             18,695

a.Using the high-low method, find variable cost per unit and total fixed costs.
b.What is the estimated cost for a month in which 22,000 issues are published?


2. One-Connect has fixed costs of $792,625. Selling price per unit is $195 and variable cost per unit is $110.

a. How many units must One-Connect sell in order to break even?

b. How many units must One-Connect sell in order to earn a profit of $178,500?

c. A new employee suggests that One-Connect sponsor a company softball team as a form of advertising. The cost to sponsor the team is $4,250. How many more units must be sold to cover this cost?

3. Bob's Bobcats can make two models of bobcats - the Buck and the Bill. Each Buck sells for $7,500, has $5,000 in variable costs and takes 100 hours to make. Each Bill sells for $14,000, has $9,500 in variable costs, and takes 300 hours to make. Bob's Bobcats can sell all of either unit they can produce. There are only 30,000 labor hours available this month. What model should be produced and how many can be produced to maximize profit?

Posted Date: 2/16/2013 12:51:58 AM | Location : United States







Related Discussions:- Cost volume profit analysis, Assignment Help, Ask Question on Cost volume profit analysis, Get Answer, Expert's Help, Cost volume profit analysis Discussions

Write discussion on Cost volume profit analysis
Your posts are moderated
Related Questions
What is bad debt expense, using the aging method (also called the "percentage of receivables" method), given the following set of facts?   A firm has $80 of gross accounts recei

Write a mini report in which you "Critically Describe, Aanlyse and Reflect on the Brand Image Extension.  This task must include evidence of collection primary data on the same

Role of Cost Accounting in Organization Like part of their jobs, such cost accountants interpret results, and then report them to management and give analysis such assist deci

L ABOUR VARIANCES Labour Cost Variance (LCV) Described by the ICMA, London, 'Labour cost variance is the variation between the standard direct wages specified for the pro

UTILITY OF BREAK EVEN POINT IN MANAGERIAL DECISION MAKING 1. It assists in determination of sales mix 2. It assists in exploring new markets 3. It assists in deciding abo

Place a prepared slide of Giardia first under tlie low power and then under the high power of the microscope and observe tlie followilig characters. i) Bilaterally symmetrical

Determine When to Stock It will be influence with the inventory system in place as given: 1. Periodic order system. The firm obtains a new order of the amo

Balance Sheet Classi?cations and Relationships: Shelley and Co. has the following balance sheet elements as of December 31, 2012. Land. . . . . . . . . . . . . . . . . . . . . .

You are the manager of a firm that sells output at a price of $40 per unit. You are interested in hiring a new worker who will increase your firm's output by 2,000 units per year.

1. Suppose your company needs to raise $30 million and you want to issue 30-year bonds for this purpose. Assume the required return on your bond issue will be 8 percent, and you're