Reference no: EM131623473
Q1. A shoe manufacturer incurred the following costs during the first quarter of the year:
|
Direct labor
|
780,000
|
|
Direct Materials
|
500,000
|
|
Manufacturing Overhead
|
900,000
|
The company produced 40,000 pairs of shoes and sold 35,000 pairs.
What was the cost of sales for the first quarter of the year?
If the sales were $5,000,000. How much was the gross profit?
If fixed costs were $1,592,500, How much operating income (loss) did the company have for the first quarter?
Q2. The income statement of Santa's Toy Manufacturing Company had the following income statement for the month of November.
Production = 1,000,000 units
|
Sales
|
|
$850,000
|
|
Direct Material
|
270,000
|
|
|
Direct Labor
|
380,000
|
|
|
Mfg Overhead
|
247,000
|
|
|
COS
|
|
897,000
|
|
Gross profit
|
|
(47,000)
|
Overhead was applied at 65% of direct labor.
If the company increases the sales price per unit by $0.15. What will be the new gross profit?
Q3. Cost - Volue- Profit
|
Cost per unit
|
Cost
|
|
Sales (revenue)
|
$10 p/unit
|
100,000
|
|
Variable costs
|
$3.40 p/unit
|
35,000
|
|
Fixed costs
|
|
50,000
|
What is the break even in sales and units using the equation method?
What is the brek even in sales and units using the CM per unit method?
Q4. Cost-Volume-Profit
1. Total variable costs increase as production increases. Does the per unit variable cost increase, decrease, or remain the same over the relevant range?
2. Fixed costs remain the same when production increases or decreases. Does the per-unit fixed cost increase, decrease or remain the same over the relevant range?
Q5. Cost-Volume -Profit
Mario Brothers Products distributes a single product, water pipes, whose selling price is $15 and whose variable expense is $12 per unit. The company's monthly fixed expense is $4,200.
Required: Solve for the company's break-even point in unit sales using the equation method.
Q6. Cost Volume Profit
Winterhaven School is raising money to purchase new choir robes.
The cost of the robes is $8,000, so the school will need to have a profit of $8,000 from the raffle.
The raffle tickets sell for $10 each. The variable cost of the raffle ticket is $2 and the fixed cost is $8,000.
Determine the sales volume required to achieve the target income.
Attachment:- Assignment.rar