Question
In: Accounting
A company makes and sells a single product, the variable cost of the production is $3...
A company makes and sells a single product, the variable cost of the production is $3 per unit
and variable cost of selling is $1 per unit, fixed cost totalled $600, and the selling price per unit
was $6. The company budgeted to make and sell 3 000 units in the next year.
Required
Prepare a break even chart showing the expected amount of the output and sales required to
break even.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Genco Inc. makes a single product that sells for P50. The standard variable manufacturing cost is...
Genco Inc. makes a single product that sells for P50.
The standard variable manufacturing cost is P32.50 and the standard
fixed manufacturing cost is P7.50, based on producing 20,000 units.
During the year Genco produced 22,000 units and sold 21,000 units.
Actual fixed manufacturing costs were P157,000; actual variable
manufacturing costs were P735,000. Selling and administrative
expenses, all fixed, were P75,000. There were no beginning
inventories.
a. What is the net income under the
standard absorption costing income statement?...
4.Genco Inc. makes a single product that sells for $50. The standard variable manufacturing cost is...
4.Genco Inc. makes a
single product that sells for $50. The standard variable
manufacturing cost is $32.50 and the standard fixed manufacturing
cost is $7.50, based on producing 20,000 units. During the year
Genco produced 22,000 units and sold 21,000 units. Actual fixed
manufacturing costs were $157,000; actual variable manufacturing
costs were $735,000. Selling and administrative expenses, all
fixed, were $75,000. There were no beginning inventories.
a.Prepare a standard
absorption costing income statement.
b.Prepare a standard
variable costing income statement....
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
10
Variable manufacturing
overhead
2
Variable selling and
administrative
3
Total variable cost per
unit
$
19
Fixed costs per month:
Fixed manufacturing
overhead
$
75,000
Fixed selling and
administrative
166,000
Total fixed cost per month
$
241,000
The product sells for $50 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company
manufactures and sells a single product. Cost data for the product
are given:
Variable costs
per unit:
Direct
materials
$
3
Direct
labor
9
Variable
manufacturing overhead
4
Variable selling
and administrative
1
Total variable
cost per unit
$
17
Fixed costs per
month:
Fixed
manufacturing overhead
$
108,000
Fixed selling
and administrative
166,000
Total fixed cost
per month
$
274,000
The product sells for
$53 per unit. Production and sales data for July and August, the
first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
5
Direct labor
10
Variable manufacturing overhead
3
Variable selling and administrative
3
Total variable cost per unit
$
21
Fixed costs per month:
Fixed manufacturing overhead
$
120,000
Fixed selling and administrative
166,000
Total fixed cost per month
$
286,000
The product sells for $50 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
10
Variable manufacturing overhead
3
Variable selling and administrative
2
Total variable cost per unit
$
19
Fixed costs per month:
Fixed manufacturing overhead
$
72,000
Fixed selling and administrative
163,000
Total fixed cost per month
$
235,000
The product sells for $51 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
11
Variable manufacturing
overhead
4
Variable selling and
administrative
2
Total variable cost per
unit
$
21
Fixed costs per month:
Fixed manufacturing
overhead
$
90,000
Fixed selling and
administrative
163,000
Total fixed cost per month
$
253,000
The product sells for $47 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
3
Direct labor
11
Variable manufacturing overhead
3
Variable selling and administrative
2
Total variable cost per unit
$
19
Fixed costs per month:
Fixed manufacturing overhead
$
120,000
Fixed selling and administrative
169,000
Total fixed cost per month
$
289,000
The product sells for $49 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
5
Direct labor
11
Variable manufacturing overhead
2
Variable selling and administrative
3
Total variable cost per unit
$
21
Fixed costs per month:
Fixed manufacturing overhead
$
144,000
Fixed selling and administrative
160,000
Total fixed cost per month
$
304,000
The product sells for $47 per unit. Production and sales data
for July and August, the first...
Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
5
Direct labor
10
Variable manufacturing overhead
3
Variable selling and administrative
3
Total variable cost per unit
$
21
Fixed costs per month:
Fixed manufacturing overhead
$
144,000
Fixed selling and administrative
163,000
Total fixed cost per month
$
307,000
The product sells for $48 per unit. Production and sales data
for July and August, the first...
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