Question

In: Accounting

The following are costs related to the marketing and manufacture of novelty football helmets, primarily used...

The following are costs related to the marketing and manufacture of novelty football helmets, primarily used to sell nachos at NFL games:

Manufacturing costs:

Direct Materials $.50

Direct Labour .40

Variable manufacturing overhead .30

Fixed manufacturing overhead .50

Marketing costs:

Variable .50

Fixed .20

The above costs relate to the 100,000 helmet production level.

Required:

Assume each situation below is independent.

1. Assume that at the end of the year 15,000 units of the helmets are left in inventory. What would be the unit cost used on the balance sheet?

2. If the company sells 5,000 more helmets at a selling price of $10.00 per unit, how much would company net income increase or decrease?

3. The company wants to enter a foreign market in which price competition is keen. The company wishes to sell a one –time only special order for 20,000 units. It expects the only variable marketing costs will be shipping costs of $.40 per unit. The fixed cost of obtaining the contract would be $10,000. Regular sales would be unaffected. Calculate the minimum selling price to break even.

4. The company has an inventory of 1,000 helmets that must be sold immediately at reduced prices. Otherwise, the inventory will be worthless. What is the relevant cost for establishing the minimum selling price?

Expert Solution

ekkarill92 answered 2 years ago

Statistical data related to college football was gathered over the following. State the Highest Level of...

Statistical data related to college football was gathered over the following. State the Highest Level of Measurement of each. a) Time of kickoff (11:00 am, 2:00 pm, 7:00 pm). b) Number of fans attending the game. c) Temperature at kickoff. d) Types of beverages sold at the stadium (water, pop, gatorade, etc). e) Rating of stadium experience (poor, average, excellent). f) Cost of ticket.

Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost...

Which of the following costs relate to warranty repairs, product liability costs, marketing costs, and lost sales? a. prevention costs. b. appraisal costs. c. internal failure costs. d. external failure costs. 2. Which of the following terms describes the range of activity over which the firm expects a set of cost behaviors to be consistent? a. irrelevant range. b. relevant range. c. short-range. d. long-range. 3. J-Mobile provides cellular phone and Internet services with a plan that provides...

The following data were collected for the decomposition of acetaldehyde, CH3CHO (used in the manufacture of...

The following data were collected for the decomposition of acetaldehyde, CH3CHO (used in the manufacture of a variety of chemicals including perfumes, dyes, and plastics), into methane and carbon monoxide. The data was collected at a temperature at 535 °C. CH3CHO → CH4 + CO [CH3CHO] (mol L-1) Time (s) 0.200 0 0.153 0.20 x 102 0.124 0.40 x 102 0.104 0.60 x 102 0.090 0.80 x 102 0.079 1.00 x 102 0.070 1.20 x 102 0.063 1.40 x 102...

The manufacture of a washing powder product used in automatic washing machines has estimated the following...

The manufacture of a washing powder product used in automatic washing machines has estimated the following demand equation for its product using data from 30 appliances stores around the country. Q= -350 - 2.0P + 1.2 Px + 5.0I + 6.0 A + 5.0U (3.08) (0.60) (0.55) (0.32) (0.80) (0.021) (SEC) The actual values for each of the independent variables are as follows. Assume the following information for the independent variables: Q = Quantity sold per month Price (P) of...

Required Identify the following costs as fixed or variable: Costs related to plane trips between Boston,...

Required Identify the following costs as fixed or variable: Costs related to plane trips between Boston, Massachusetts, and San Diego, California, follow. Pilots are paid on a pertrip basis. a. Pilots’ salaries relative to the number of trips flown. b. Depreciation relative to the number of planes in service. c. Cost of refreshments relative to the number of passengers. d. Pilots’ salaries relative to the number of passengers on a particular trip. e. Cost of a maintenance check relative to...

Myers Corporation has the following data related to direct materials costs for November: actual costs for...

Myers Corporation has the following data related to direct materials costs for November: actual costs for 4,640 pounds of material at $5.10 and standard costs for 4,460 pounds of material at $6.20 per pound. The direct materials quantity variance is a.$1,116 unfavorable b.$5,104 unfavorable c.$1,116 favorable d.$5,104 favorable

5. Answer the following questions related to AFN. a. The following equation is sometimes used to...

5. Answer the following questions related to AFN. a. The following equation is sometimes used to forecast funding requirements: AFN= (A0*/S0)(S) – (L0*/S0)( S) – MS1(1- POR) What key assumption do we make when using this equation? Under what conditions might this assumption not hold? What would be the more general formula for AFN? b. Name five key factors that affect a firm’s external financing requirements. Explain how each one affects the requirements? c. What is meant by the term...

Define - in your own words - each of the following related concepts with the costs...

Define - in your own words - each of the following related concepts with the costs of a product or service: to. F. Product costs g. Raw material / Direct material h. Direct labor / Direct labor i. Indirect costs (manufacturing overhead) j. Selling Costs / Marketing Costs k. General and administrative costs 2. Mention an example of each of the concepts, behaviors and / or characteristics of the costs defined in numeral 1.

The company presents the following information related to sales and costs of the only type of...

The company presents the following information related to sales and costs of the only type of product that will be sold abroad next year. Sale price $ 160, variable unit cost $ 130, fixed costs $ 249,000, the company is subject to a 38% tax rate. a) What is the equilibrium point in units? b) At what amount of sales ($) there will be no profits but losses? c) When sales are 9,000 units, what is the amount of profit...

Problem: Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies....

Problem: Cactus Cookies incurred the following costs this month to manufacture 1,000 jumbo chocolate chip cookies. Chocolate chips $750 Flour $2,200 Butter $48 Sugar $300 Other ingredients $27 Labor wages $300 Rent on manufacturing space $2500 Utilities (paid at a monthly rate) $520 Depreciation on kitchen equipment $880 Advertising $1000 Machine maintenance costs $500 President salary $2000 Calculate each of the following: The total Direct Material costs this month The total Direct Labor costs this month The total Overhead costs...