What is the current profit of the sales of audiocables

Assignment Help Managerial Accounting
Reference no: EM132960254

AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.60 per unit and a selling price of $1.10 per unit. Fixed costs are $14,000. Current sales volume is 35,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $0.75, but sales volume should jump to 60,000 units due to a higher-quality product.

Problem a. What is the current profit and proposed profit of the sales of AudioCables? (Negative amounts should be indicated by a minus sign.)

Problem b. Should AudioCables buy the new equipment?

Reference no: EM132960254

Questions Cloud

What is the required cycle time for such a system : What is the required cycle time for such a system? An output of 675 units per shift (7.50 hours) is desired for a new processing system.
What is the workstation cycle time : What is the workstation cycle time? The desired daily output for an assembly line is 360 units. This assembly line will operate 390 minutes per day.
How significant are the six items to future human resources : How significant are the six items to future Human Resources policies and operations? Discuss these issues with your colleagues.
Compute todolimpio degree of operating leverage : Compute TodoLimpio's degree of operating leverage using the operating income under variable costing. Round to two decimal places
What is the current profit of the sales of audiocables : What is the current profit and proposed profit of the sales of AudioCables? (Negative amounts should be indicated by a minus sign.)
Calculate the manufacturing overhead costs : The following information was obtained from Fold Co., a car manufacturer. Advertising expense $9,000. Calculate the manufacturing overhead costs
How much revenue do need to take in before breaking even : How much revenue do we need to take in before breaking even? Owen Conner works part-time packaging software for a local distribution company in Indiana
Describe the role of music in medieval liturgical drama : -Part 1: Using the illustrations in our textbook from the Module on Islam to refresh your memory: Imagine that you are a Muslim pilgrim to Notre Dame in Paris.
How many units are needed to break even : How many units are needed to break even if each completed unit has a value of $90? A manufacturing process has a fixed cost of $150,000 per month

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd