Solution-What is the break even quantity for a price of $405

What is the break even quantity for a price of $405

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Reference no: EM131692180

Question 1

The Janesky Company has collected data on the manufacture of 8,388 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.

Units sold last month	8,388
Direct materials	$272,615
Direct labor	$117,500
Manufacturing variable overhead	$447,354
Selling and administrative costs	$461,116

What would be the break even price to produce and sell 7,710 units in the coming month?

Question 2

The Janesky Company has collected data on the manufacture of 1,944 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.

Units sold last month	1,944
Direct materials	$343,836
Direct labor	$242,293
Manufacturing variable overhead	$483,202
Selling and administrative costs	$103,688

What is the break even quantity for a price of $405?

Question 3

Janesky Compamy has been asked by a customer to ship an additional 250 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house.

Units sold last month	4,350
Direct materials	$201,636
Direct labor	$403,636
Manufacturing variable overhead	$411,296
Selling and administrative costs	$409,995

It the policy on such special orders is a markup (over cost) of 16%, what should you charge for the 250 units?

Reference no: EM131692180

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What is the break even quantity for a price of $405

Reference no: EM131692180

Reference no: EM131692180

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