Question
In: Accounting
Consider the following data: Epsilon Iota Omega Number of Units/Product Mix 6,025 8,570 10,095 Sales price...
- Consider the following data:
|
Epsilon |
Iota |
Omega |
||
|
Number of Units/Product Mix |
6,025 |
8,570 |
10,095 |
|
|
Sales price per unit |
$157.62 |
$192.91 |
$374.29 |
|
|
Variable cost per unit |
$75.42 |
$86.57 |
$139.12 |
|
|
Total Fixed Costs |
$456,230.00 |
$268,490.00 |
$188,955.00 |
|
|
Target Operating Income |
$589,400.00 |
$457,200.00 |
$1,529,640.00 |
|
|
Contribution margin per unit |
||||
|
Contribution margin ratio |
||||
|
Breakeven point in units |
||||
|
Breakeven in dollars (sales) |
||||
|
# of Units to achieve target income |
||||
|
Weighted Average CM |
||||
|
Units to Break Even with Weighted Average CM |
||||
|
Units to Achieve Target with Weighted Average CM |
For dollar amounts, round to the nearest cent. For percentages, round to the nearest percent.
- Compute the CM per unit. (5 points)
- Compute the CM ratio per unit. (5 points)
- Compute the # of units to breakeven and achieve target operating income. (8 points)
- Compute the # of sales dollars to breakeven and achieve target operating income. (8 points)
- Calculate the weighted average CM per unit. (5 points)
- Calculate the breakeven in units for weighted average CM (10 points)
- Calculate the number of units to achieve operating income with the weighted average CM (5 points)
Solutions
Expert Solution
(a) Compute the CM per unit =
| Epsilon | Iota | Omega |
| $ 82.2 | $ 106.3 | $ 235.2 |
(b) Compute the CM ratio per unit =
| Epsilon | Iota | Omega |
| 52% | 55% | 63% |
(c) Compute the # of units to breakeven
| Epsilon | Iota | Omega |
| 5,550.2 | 2,524.8 | 803.5 |
Achieve target operating income
| Epsilon | Iota | Omega |
| 12,720.6 | 6,824.2 | 7,307.9 |
(d) Compute the # of sales dollars to breakeven
| Epsilon | Iota | Omega |
| $ 874,829.4 | $ 487,064.2 | $ 300,735.5 |
Achieve target operating income
| Epsilon | Iota | Omega |
| $ 2,005,014.6 | $ 1,316,464.7 | $ 2,735,267.8 |
(e) Calculate the weighted average CM per unit
Total Contribution / Total Sales = $ 37,80,629.9 / $63,81,356.7 = 59%
(f) Calculate the breakeven in units for weighted average CM
Total Fixed Cost / Contribution Per unit = $ 9,13,675 / (Total Contribution / Sales units )
= $ 9,13,675 / ($ 37,80,629.9 / 24,690)
= 5,966.9 units
(g) Calculate the number of units to achieve operating income with the weighted average CM
(Total Fixed Cost + Operating Income ) / Contribution Per unit
=( $ 9,13,675 + $ 25,76,240 )/ ($ 37,80,629.9 / 24,690)
= 22,791.4 units
ekkarill92 answered 3 years agoRelated Solutions
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consider the following data for two products of gitano
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number id units produced product a 11,500 units product b 1300
units
direct labor cost (@ $27 per DLH) product a 0.14 DLH per unit
product b 0.28 DLH per unit
direct materials cost product a $2 per unit product b $2.50
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materials handling $ 55,000
quality control inspections $79,380
total $ 185,556
round to two decimal places
1.
use direct labor hours...
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Consider the following three market price data.
(a) Enter the following sales data using Excel.
sales = x1
sales = x2
sales = x3
Price A ($)
10
10
10
100
10
10
13
99
10
10
15
98
12
10
10
98
12
12
10
97
12
14
10
95
14
10
10
94
(b) Use LINEST to find a linear price function for the above
data for three markets. (Note: You will be using the format (Price
=...
Eyad & Ndidi Company reported the following monthly data: Units produced 2,000 units Sales price $...
Eyad & Ndidi Company reported the following monthly data:
Units produced 2,000 units Sales price $ 25 per unit Direct
materials $ 1 per unit Direct labor $ 2 per unit Variable overhead
$ 3 per unit Fixed overhead $ 8,000 in total What is Eyad and
Ndidi's net income under variable costing if 980 units are sold and
operating expenses are $12,000? Question 10 options: $10,620
($1,380) ($2,000) $2,700 $6,620
Laner Company has the following data for the production and sale of 2,300 units. Sales price...
Laner Company has the following data for the production and sale
of 2,300 units.
Sales price per unit $950 per unit
Fixed costs:
Marketing and administrative $529,000 per period
Manufacturing overhead $253,000 per period
Variable costs:
Marketing and administrative $65 per unit
Manufacturing overhead $95 per unit
Direct labor $115 per unit
Direct materials $230 per unit
What is the full cost per unit of making and selling the
product?
Decko Industries reported the following monthly data: Units produced 66,000 units Sales price $ 47 per...
Decko Industries reported the following monthly data:
Units produced
66,000
units
Sales price
$
47
per unit
Direct materials
$
2.90
per unit
Direct labor
$
3.90
per unit
Variable overhead
$
4.90
per unit
Fixed overhead
$
235,400
in total
What is the company's contribution margin for this month if 64,000
units were sold?
part b
Kluber, Inc. had net income of $906,000 based on variable
costing. Beginning and ending inventories were 55,600 units and
53,200 units, respectively. Assume...
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between
advertising budget and sales for Product A:
Observation
1
2
3
4
5
6
7
8
9
10
Advertising ($)
50,000
60,000
60,000
70,000
70,000
80,000
90,000
90,000
100,000
110,000
Sales ($)
299,001
371,000
364,000
430,000
440,000
485,000
535,000
546,000
595,000
675,000
What is the predicted sales quantity for an advertising
budget of $76,000?
Please round your answer to the nearest integer.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between
advertising budget and sales for Product A:
Observation
1
2
3
4
5
6
7
8
9
10
Advertising ($)
50,000
60,000
60,000
70,000
70,000
80,000
90,000
90,000
100,000
110,000
Sales ($)
299,001
371,000
364,000
430,000
440,000
485,000
535,000
546,000
595,000
675,000
What is the correlation value for the relationship
between advertising and sales?
Please round your answer to the nearest hundredth.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between
advertising budget and sales for Product A:
Observation
1
2
3
4
5
6
7
8
9
10
Advertising ($)
50,000
60,000
60,000
70,000
70,000
80,000
90,000
90,000
100,000
110,000
Sales ($)
299,001
371,000
364,000
430,000
440,000
485,000
535,000
546,000
595,000
675,000
What is the predicted sales quantity for an advertising
budget of $76,000?
Please round your answer to the nearest integer.
Note that the correct answer will be evaluated based...
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between
advertising budget and sales for Product A:
Observation
1
2
3
4
5
6
7
8
9
10
Advertising ($)
100,000
110,000
110,000
120,000
130,000
130,000
140,000
150,000
150,000
160,000
Sales ($)
603,000
676,000
655,000
748,000
796,000
785,000
858,000
891,000
935,000
980,000
What is the slope of the "least-squares" best-fit
regression line?
Please round your answer to the nearest hundredth.
Consider the following sample data for the relationship between advertising budget and sales for Product A:...
Consider the following sample data for the relationship between
advertising budget and sales for Product A:
Observation
1
2
3
4
5
6
7
8
9
10
Advertising ($)
50,000
60,000
60,000
70,000
70,000
80,000
90,000
90,000
100,000
110,000
Sales ($)
299,001
371,000
364,000
430,000
440,000
485,000
535,000
546,000
595,000
675,000
What is the correlation value for the relationship
between advertising and sales?
Please round your answer to the nearest hundredth.
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