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Coronado Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president...
Coronado Inc. (AP) is a manufacturer of toaster ovens. To improve control over operations, the president of AP wants to begin using a flexible budgeting system, rather than use only the current master budget. The following data are available for AP’s expected costs at production levels of 89,000, 103,000, and 117,000 units. Variable costs Manufacturing $7 per unit Administrative $4 per unit Selling $2 per unit Fixed costs Manufacturing $151,000 Administrative $77,000
Prepare a flexible budget for each of the possible production levels: 89,000, 103,000, and 117,000 units. (List variable costs before fixed costs.)
If AP sells the toaster ovens for $17 each, how many units will it have to sell to make a profit of $208,000 before taxes?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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flexible budgeting system, rather than use only the current master
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Prepare a flexible budget for each of the...
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expected costs at production levels of 82,000, 96,000, and 110,000
units.
Variable costs
Manufacturing
$6 per unit
Administrative
$3 per unit
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Fixed costs
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Administrative
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Prepare a flexible budget for each of...
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Contribution Margin Variance
Iliff, Inc., produces and sells two types of countertop
ovens—the toaster oven and the convection oven. Budgeted and actual
data for the two models are shown below.
Budgeted Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
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$2,385,000
($151 × 16,000)
$2,416,000
$4,801,000
Variable expenses
470,000
670,000
1,140,000
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$1,746,000
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Toaster
Oven
Convection
Oven
Total
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$2,116,500
($165 × 12,000)
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$4,096,500
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Contribution Margin Volume Variance
Iliff, Inc., produces and sells two types of countertop
ovens—the toaster oven and the convection oven. Budgeted and actual
data for the two models are shown below.
Budgeted Amounts:
Toaster
Oven
Convection
Oven
Total
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$2,950,000
($149 × 14,500)
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Actual Amounts:
Toaster
Oven
Convection
Oven
Total
Sales:
($82 × 25,000)
$2,050,000
($157 × 13,500)
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Variable expenses
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