Question
In: Accounting
william's watches ltd produces and sells two types of wrist watch: the standard and the deluxe....
william's watches ltd produces and sells two types of wrist watch: the standard and the deluxe. in the coming year williams watches ltd expects to sell 4000 units of the standard and 2000 units of the deluxe.
Information on the two products is as follows:
| standard |
Deluxe |
|
| sales price | 500 | 400 |
| variable cost | 275 | 220 |
Total fixed costs are expected to be 180,000.
required:
1, calculate the breakeven point in sales value
2. calculate the margin of safety in sales value
3. Disscuss how changes in the following three components affect the breakeven point:
sales price per unit
variable cost per unit
the total fixed cost.
maximum word count: 150 words
4.Discuss the main differences between Accounting Rate of Return and internal Rate of Return
maximum word count: 110 words
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Prestige International, a swiss watch manufacturer exports sports and premium wrist and smart watches to the...
Prestige International, a swiss watch manufacturer exports
sports and premium wrist and smart watches to the U.S. In early
2012, the spot exchange rate between the Swiss Franc and U.S.
dollar was 1.0404 ($ per franc). While they are usually happy about
their exports being billed in US Dollars, but due to the recent
fluctuation in exchange rates, the company has taken a toll on
their net receipts when converted into Swiss Francs.
Interest rates in the U.S. and Switzerland...
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional...
Julio produces two types of calculator, standard and deluxe. The
company is currently using a traditional costing system with
machine hours as the cost driver but is considering a move to
activity-based costing. In preparing for the possible switch, Julio
has identified two cost pools: materials handling and setup. The
collected data follow:
Standard Model
Deluxe Model
Number of machine hours
26,400
31,400
Number of material moves
620
920
Number of setups
70
570
Total estimated overhead costs are $358,840,...
6. Julio produces two types of calculator, standard and deluxe. The company is currently using a...
6. Julio produces two
types of calculator, standard and deluxe. The company is currently
using a traditional costing system with machine hours as the cost
driver but is considering a move to activity-based costing. In
preparing for the possible switch, Julio has identified two cost
pools: materials handling and setup. The collected data
follow:
Standard Model
Deluxe Model
Number of
machine hours
25,800
30,800
Number of
material moves
590
890
Number of
setups
70
540
Total estimated overhead costs are...
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional...
Julio produces two types of calculator, standard and deluxe. The
company is currently using a traditional costing system with
machine hours as the cost driver but is considering a move to
activity-based costing. In preparing for the possible switch, Julio
has identified two cost pools: materials handling and setup. The
collected data follow:
Standard Model
Deluxe Model
Number of machine hours
26,000
31,000
Number of material moves
600
900
Number of setups
90
550
Total estimated overhead costs are $344,380,...
The Agate Corporation manufactures and sells two types of bookcases, standard and deluxe. Agate expects the...
The Agate Corporation manufactures and sells two types of
bookcases, standard and deluxe. Agate expects the following
operating results next year for each type of bookcase:
sales standdard 450000 delux 50000
variable expenses total stndard 180000 delux 20000
Agate expects to have a total of $57,600 in fixed expenses next
year. What is Agate's break-even point next year in sales
dollars?
A company sells two products: a standard model and a deluxe model. The standard model sells...
A
company sells two products: a standard model and a deluxe model.
The standard model sells for $50 and has a contribution margin
ratio of 40%. The deluxe model sells for $100 and has a
contribution margin ratio of 50%. Last year, the company sold 5000
standard units and 2500 deluxe units.
There is $200,000 of cost that is “fixed” in the sense that it
does not vary with the number of units produced. However, $100,000
of this cost is...
Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe...
Sales and Production Budgets
Berring Company produces two products: the deluxe and the
standard. The deluxe sells for $40, and the standard sells for $10.
Projected sales of the two models for the coming four quarters are
given below.
Deluxe
Standard
First quarter
11,000
90,000
Second quarter
14,500
88,600
Third quarter
16,800
93,000
Fourth quarter
20,000
91,400
The president of the company believes that the projected sales
are realistic and can be achieved by the company. In the factory,
the...
Sales and Production Budgets Berring Company produces two products: the deluxe and the standard. The deluxe...
Sales and Production Budgets
Berring Company produces two products: the deluxe and the
standard. The deluxe sells for $40, and the standard sells for $10.
Projected sales of the two models for the coming four quarters are
given below.
Deluxe
Standard
First quarter
11,000
90,000
Second quarter
14,500
88,200
Third quarter
16,500
92,000
Fourth quarter
20,000
91,800
The president of the company believes that the projected sales
are realistic and can be achieved by the company. In the factory,
the...
Agnew Manufacturing produces and sells three models of a single product, Standard, Superior, and DeLuxe, in...
Agnew Manufacturing produces and sells three models of a single
product, Standard, Superior, and DeLuxe, in a local market and in a
regional market. At the end of the first quarter of the current
year, the following income statement (in thousands of dollars) has
been prepared.
Total
Local
Regional
Sales revenue
$
15,300
$
11,790
$
3,510
Cost of goods sold
12,105
9,315
2,790
Gross margin
$
3,195
$
2,475
$
720
Marketing costs
1,230
705
525
Administrative costs
606...
Agnew Manufacturing produces and sells three models of a single product, Standard, Superior, and DeLuxe, in...
Agnew Manufacturing produces and sells three models of a single
product, Standard, Superior, and DeLuxe, in a local market and in a
regional market. At the end of the first quarter of the current
year, the following income statement (in thousands of dollars) has
been prepared:
Total
Local
Regional
Sales revenue
$
7,800
$
6,000
$
1,800
Cost of goods sold
6,060
4,650
1,410
Gross margin
$
1,740
$
1,350
$
390
Marketing costs
630
360
270
Administrative costs
312...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- A buffer contains 1.0 mol of CH3CO2H and 1.0 mol of CH3CO2- diluted with water to...
- - A primary sedimentation basin for a municipal waste water treatment plant treats a flow of...
- Hello I'm currently having an error that says "main is not abstract and does not override...
- Give a direct proof of the following theorem, upon which case you can use it for...
- A7X Corp. just paid a dividend of $1.35 per share. The dividends are expected to grow...
- Please use Java language in an easy way with comments! Thanks! Create a calculator that uses...
- Due Thursday (Normal late penalties apply for late submission.) Respond to the following in a minimum of...
ADVERTISEMENT