Question
In: Accounting
A furniture manufacturer specializes in wood tables. The tables sell for $ 140 per unit and...
A furniture manufacturer specializes in wood tables. The tables sell for $ 140 per unit and incur $ 49 per unit in variable costs. The company has $ 14,560 in fixed costs per month. The company desires to earn an operating profit of $ 8,190 per month. (Abbreviation used; CM = contribution margin.)
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10. |
Calculate the required sales in units to earn the target profit using the equation method. |
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11. |
Calculate the required sales in units to earn the target profit using the contribution margin method. |
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12. |
Calculate the required sales in dollars to earn the target profit using the contribution margin ratio method. |
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13. |
Calculate the required sales in units to break even using the contribution margin method. |
Solutions
ekkarill92 answered 1 year agoRelated Solutions
The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table...
The Dorilane Company specializes in producing a set of wood
patio furniture consisting of a table and four chairs. The set
enjoys great popularity, and the company has ample orders to keep
production going at its full capacity of 2,000 sets per year.
Annual cost data at full capacity follow: Direct labor $ 118,000
Advertising $ 50,000 Factory supervision $ 40,000 Property taxes,
factory building $ 3,500 Sales commissions $ 80,000 Insurance,
factory $ 2,500 Depreciation, administrative office equipment $...
The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table...
The Dorilane Company specializes in producing a set of wood
patio furniture consisting of a table and four chairs. The set
enjoys great popularity, and the company has ample orders to keep
production going at its full capacity of 3,900 sets per year.
Annual cost data at full capacity follow:
Direct labor
$
89,000
Advertising
$
102,000
Factory supervision
$
66,000
Property taxes, factory building
$
19,000
Sales commissions
$
63,000
Insurance, factory
$...
#1 The Dorilane Company specializes in producing a set of wood patio furniture consisting of a...
#1
The Dorilane Company specializes in producing a set of wood
patio furniture consisting of a table and four chairs. The set
enjoys great popularity, and the company has ample orders to keep
production going at its full capacity of 4,200 sets per year.
Annual cost data at full capacity follow:
Direct labor
$
91,000
Advertising
$
102,000
Factory supervision
$
67,000
Property taxes, factory building
$
18,000
Sales commissions
$
60,000
Insurance, factory...
The Dorilane Company specializes in producing a set of wood patio furniture consisting of a table...
The Dorilane Company specializes in producing a set of wood
patio furniture consisting of a table and four chairs. The set
enjoys great popularity, and the company has ample orders to keep
production going at its full capacity of 4,200 sets per year.
Annual cost data at full capacity follow: Direct labor $ 91,000
Advertising $ 102,000 Factory supervision $ 67,000 Property taxes,
factory building $ 18,000 Sales commissions $ 60,000 Insurance,
factory $ 6,000 Depreciation, administrative office equipment $...
G&G Furniture Co. produces chairs and tables. The following table gives the profit generated per unit,...
G&G Furniture Co. produces chairs and tables. The following
table gives the profit generated per unit, as well as the amount of
wood, labor and other materials required, per unit of each product
along with their maximum monthly limits in terms of
availability.
Chairs
Tables
Max Limits
profit
$100
$125
Wood
20 lbs per unit
30 lbs per unit
6000 lbs
Other Materials
1 lbs per unit
1 lbs per unit
400 lbs
Labor
1.5 hours per unit
2 hours...
Q.4. The D.C specializes in producing the set of wood patio furniture consisting off a table...
Q.4. The D.C specializes in producing the set
of wood patio furniture consisting off a table and four chairs. The
set enjoys great popularity, and the company has ample orders to
keep production going at its full capacity of 2,000 sets per year.
Annual cost data at full capacity follow:
Factory labor,
direct
Rs. 118,000
Advertising
50,000
Factory supervision
40,000
Property taxes, factory
building
3,500
Sales
commissions
80,000
Insurance,
factory
2,500
Depreciation, administrative office
equipment
4,000
Lease Cost, factory
equipment ...
A Furniture Company produces chairs and tables from two resources- labor and wood. The company has...
A Furniture Company produces chairs and tables from two
resources- labor and wood. The company has 125 hours of labor and
45 board-ft. of wood available each day. Demand for chairs is
limited to 5 per day. Each chair requires 7 hours of labor and 3.5
board-ft. of wood, whereas a table requires 14 hours of labor and 7
board-ft. of wood. The profit derived from each chair is $325 and
from each table, $120. The company wants to determine...
5. The Pinewood Furniture Company produces chairs and tables from two resources—labor and wood. The company...
5. The Pinewood Furniture Company produces chairs and tables
from two resources—labor and wood. The company has 80 hours of
labor and 36 board-ft. of wood available each day. Demand for
chairs is limited to 6 per day. Each chair requires 8 hours of
labor and 2 board-ft. of wood, whereas a table requires 10 hours of
labor and 6 board-ft. of wood. The profit derived from each chair
is $400 and from each table, $100. The company wants to...
Honeywell manufacturer of fireplaces, had planned to produce and sell 2,500 units at $105.00 per unit....
Honeywell manufacturer of fireplaces, had planned to produce and
sell 2,500 units at $105.00 per unit. Budgeted variable
manufacturing costs per unit are $20.00. Honeywell pays its
salespeople a 5% sales commission, which is the only non-variable
manufacturing cost for the company. Fixed costs are budgeted as
follows: manufacturing, $40,000 and marketing, $30,000.
Actual financial results for the period were as follows. Sales
volume was up at 2,750 units sold and actual sales revenue for the
period was $260,000. Fixed...
Carolina Wood Products, Inc., a major manufacturer of household furniture, is interested in predicting expenditures on...
Carolina Wood Products, Inc., a major manufacturer of household
furniture, is interested in predicting expenditures on furniture
(FURN) for the entire United States.
Period
FURN ($Billions)
Time
Mar-07
61.1
1
Jun-07
59.8
2
Sep-07
59
3
Dec-07
58
4
Mar-08
56.2
5
Jun-08
58.1
6
Sep-08
59.2
7
Dec-08
61.4
8
Mar-09
63.7
9
Jun-09
67.4
10
Sep-09
71.1
11
Dec-09
74.1
12
Mar-10
77.3
13
Jun-10
80.2
14
Sep-10
82.4
15
Dec-10
85.7
16
Mar-11
88.9
17
Jun-11
92.3...
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