Question
In: Accounting
Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was...
Ivanhoe Company had $177,900 of net income in 2019 when the selling price per unit was $154, the variable costs per unit were $98, and the fixed costs were $572,500. Management expects per unit data and total fixed costs to remain the same in 2020. The president of Ivanhoe Company is under pressure from stockholders to increase net income by $93,800 in 2020.
Compute the number of units sold in 2019.
Compute the number of units that would have to be sold in 2020 to reach the stockholders’ desired profit level.
Assume that Ivanhoe Company sells the same number of units in 2020 as it did in 2019. What would the selling price have to be in order to reach the stockholders’ desired profit level?
Solutions
ekkarill92 answered 11 months agoRelated Solutions
Crane Company had $290,600 of net income in 2019 when the selling price per unit was...
Crane Company had $290,600 of net income in 2019 when the
selling price per unit was $154, the variable costs per unit were
$94, and the fixed costs were $573,400. Management expects per unit
data and total fixed costs to remain the same in 2020. The
president of Crane Company is under pressure from stockholders to
increase net income by $57,600 in 2020.
A. Compute the number of units sold in 2019
B. Compute the number of units that would...
Wildhorse Company had $278,700 of net income in 2019 when the selling price per unit was...
Wildhorse Company had $278,700 of net income in 2019 when the
selling price per unit was $154, the variable costs per unit were
$94, and the fixed costs were $573,300. Management expects per unit
data and total fixed costs to remain the same in 2020. The
president of Wildhorse Company is under pressure from stockholders
to increase net income by $42,600 in 2020.
A.)Compute the number of units sold in 2019.
B.)Compute the number of units that would have to...
Blue Spruce Company had $152,600 of net income in 2016 when the selling price per unit...
Blue Spruce Company had $152,600 of net income in 2016 when the
selling price per unit was $153, the variable costs per unit were
$93, and the fixed costs were $573,300. Management expects per unit
data and total fixed costs to remain the same in 2017. The
president of Blue Spruce Company is under pressure from
stockholders to increase net income by $61,700 in 2017. Assume that
Blue Spruce Company sells the same number of units in 2017 as it...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit...
Grange Manufacturing Company had net income of $300,000 in 2017
when the selling price per unit was $200 and data for variable and
fixed costs were as follows:
Cost Schedule:
Variable Costs:
Direct Material
$28
Direct Labour
$35
Variable Manufacturing Overhead
$17
$80
Fixed Costs:
Manufacturing Overhead
$225,000
Advertising
45,000
Administrative
150,000
$420,000
Required:
i) Compute
the number of units sold in 2017, using the equation method.
ii) Using
the sales units calculated in (i), prepare a contribution margin
income statement for...
Grange Manufacturing Company had net income of $300,000 in 2017 when the selling price per unit...
Grange Manufacturing Company had net
income of $300,000 in 2017 when the selling price per unit was $200
and data for variable and fixed costs were as follows:
Cost Schedule:
Variable Costs:
Direct Material
$28
Direct Labour
$35
Variable Manufacturing Overhead
$17
$80
Fixed Costs:
Manufacturing Overhead
$225,000
Advertising
45,000
Administrative
150,000
$420,000
i) Compute
the number of units sold in 2017, using the equation
method.
iv) Calculate
the margin of safety in number of units and sales dollars.
v) Using
the sales...
Grange manufacturing company had net income of $300,000 in 2017 when the selling price per unit...
Grange manufacturing company had net income of $300,000 in 2017
when the selling price per unit was $200 and data for variable and
fixed costs were as follows:
Cost Schedule:
Variable Costs:
Direct Material $28 Direct Labour $35
Variable Manufacturing Overhead $17
Total $80
Fixed Costs:
Manufacturing Overhead $225,000
Advertising 45,000
Administrative 150,000
Total $420,000
Required:
i) Compute the number of units sold in 2017, using the equation
method.
ii) Calculate Grange’s break-even point in units and in
dollars.
iii)...
E11-14 Naylor Company had $210,000 of net income in 2016 when the selling price per unit...
E11-14 Naylor Company had $210,000 of net income in 2016 when
the selling price per unit was $150, the variable costs per unit
were $90, and the fixed costs were $570,000.Management expects per
unit data and total fixed costs to remain the same in 2017. The
president of Naylor Company is under pressure from stockholders to
increase net income by $52,000 in 2017.
Instructions(a) Compute the number of units sold in 2016.
(b) Compute the number of units that would...
Cliffhangers Company had the following product information for March 2019: Selling Price $149 per unit Direct...
Cliffhangers Company had the following product information for
March 2019:
Selling Price $149 per unit
Direct Materials $35 per unit
Direct Labor $29 per unit
Variable Manufacturing Overhead $13 per unit
Variable selling $6 per unit
Fixed Manufacturing Overhead . $129,000
Fixed Selling $164,000
Production 5,800 units
Sales (units) 4,400 units
REQUIRED:
What is the product cost per unit under absorption costing?
What is the product cost per unit under variable costing?
Prepare an income statement using absorption costing....
Net Income Planning Nolden Company has charged a selling price of $24 per unit, incurred variable...
Net Income Planning Nolden Company has charged a selling price
of $24 per unit, incurred variable costs of $15 per unit, and total
fixed costs of $108,000. What unit sales volume is necessary to
earn the following related amounts of net income before income tax?
a. $18,000; b. $27,000; or c. equal to 20% of sales revenue. Round
UP answers to the nearest unit, when applicable. (a) Answer units
(b) Answer units (c) Answer units
In 2017, X Company had the following selling price and per-unit variable cost information: Selling price...
In 2017, X Company had the following selling price and per-unit
variable cost information:
Selling price
$172
Variable manufacuting costs
85
Variable selling and administrative costs
22
In 2017, total fixed costs were $643,000.
In 2018, there are only two expected changes. Direct material costs
are expected to decrease by $8 per unit, and fixed selling and
administrative costs are expected to increase by $10,000. What must
unit sales be in order for X Company to break even in 2018?
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