Questions
Kaspar Corporation makes a commercial-grade cooking griddle

Kaspar Corporation makes a commercial-grade cooking griddle. The following information is available for Kaspar Corporation's anticipated annual volume of 25,600 units



Per UnitTotal
Direct materials$18
Direct labor$5
Variable manufacturing overhead$16
Fixed manufacturing overhead
$358,400
Variable selling and administrative expenses$3
Fixed selling and administrative expenses
$51,200

The company uses a 43% markup percentage on total cost.


(a)

 Compute the total cost per unit. Total cost per unit = $_______ 

Compute the target selling price.  Target selling price = $_______ 

In: Accounting

Please use the payback period analysis technique to analyze the cost and benefits of this project....

Please use the payback period analysis technique to analyze the cost and benefits of this project. With discount factor of 10%, the project will recover the investment in year three. please provide the numbers in the table.

Cash Flow

Year 0

Year 1

Year 2

Year 3

Year 4

Cost 1

10,000

Cost 2

5000

Discount factor 10%

Total costs

15000

Benefit 1

Benefit 2

Total Benefits

Present Value Total Costs

Present Value Total Benefits

NPV (PV benefits- PV costs)

In: Finance

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even...

Jasper Company has variable costs per unit of $20, fixed costs of $300,000, and a break-even point of 60,000 units. What will be the new break-even point in units if variable costs decrease by $3 per unit and fixed costs increase by $100,000?

93,333 units

33,333 units

50,000 units

200,000 units

At the break-even point:

Sales would be equal to total costs.

Contribution margin would be equal to total fixed costs.

Sales would be equal to fixed costs.

Both sales would be equal to total costs and contribution margin would be equal to total fixed costs are correct.

Which of the following statements about a cost-volume-profit graph is correct?

A cost-volume-profit graph is prepared with activity (number of units) on the vertical axis.

The intersection of the total sales line and the total cost line represents the break-even point.

The area above the break-even point represents the area of loss.

The total cost line intersects the vertical axis at the dollar amount of total variable costs.

Joseph Company has variable costs of $80 per unit, total fixed costs of $200,000, and a break-even point of 5,000 units. If the variable cost per unit decreases by $8, how many units must Joseph Company sell to break-even?

2,778 units

2,500 units

6,250 units

4,167 units

In: Accounting

Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (Model...

Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish (Model TS111). Ray has estimated the annual demand for this model at 1,000 units. His cost to carry one unit is $10 per year per unit, and he has estimated that each order costs $25 to place. The purchase cost is $500 per unit.

For the order quantities Q = {25, 50, 75, 100, 125, 150}, find the annual setup ordering cost (S*D/Q), holding cost (H*Q/2), purchasing cost (C*D), and the total annual cost (including the purchase cost) Report the results for order quantity 25 in Answersheet (3 points).

Report the Q value with the minimum total cost (select from the list in cell B12) and the corresponding total cost in Answersheet (2 points).

In: Operations Management

Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system August...

Inventory Costing Methods-Periodic Method Archer Company is a retailer that uses the periodic inventory system

August 1 Beginning Inventory 150 Units of product A @ $1700 total cost
5 Purchased 170
Units of product A @
$2716 total cost
purchased 270
Units of product A @
$5716 total cost
Sold 230
Units of product A @

Calculate the August cost of goods sold and the ending inventory at August 31 using (a) first-in, first-out, (b) last-in, first-out, and (c) the weighted-average cost methods.

Do not round until your final answers. Round your final answers to the nearest dollar.

In: Accounting

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and...

Sherri's Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year:

Month Number of Appointments Total Cost
January 150 5,600
February 500 7,000
March 375 6,600
April 300 5,100
May 325 5,800
June 475 6,900


Using the high-low method, calculate the total fixed cost per month and the variable cost per tanning appointment. (Round your "Variable Cost per Unit" answer to 2 decimal places and "Fixed Cost" answer to the nearest dollar amount.)

In: Accounting

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes...

Sunspot Beverages, Ltd., of Fiji uses the weighted-average method in its process costing system. It makes blended tropical fruit drinks in two stages. Fruit juices are extracted from fresh fruits and then blended in the Blending Department. The blended juices are then bottled and packed for shipping in the Bottling Department. The following information pertains to the operations of the Blending Department for June.

Percent Completed
Units Materials Conversion
Work in process, beginning 72,000 70% 40%
Started into production 358,500
Completed and transferred out 348,500
Work in process, ending 82,000 75% 25%


Materials Conversion
Work in process, beginning $ 26,900 $ 9,400
Cost added during June $ 288,800 $ 200,930

Calculate the Blending Department's equivalent units of production for materials and conversion in June.

Materials Conversion
Equivalent units of production

Calculate the Blending Department's cost per equivalent unit for materials and conversion in June. (Round your answers to 2 decimal places.)

Materials Conversion
Cost per equivalent unit

Calculate the Blending Department's cost of ending work in process inventory for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

Materials Conversion Total
Cost of ending work in process inventory

Calculate the Blending Department's cost of units transferred out to the Bottling Department for materials, conversion, and in total for June. (Round your intermediate calculations to 2 decimal places.)

Materials Conversion Total
Cost of units completed and transferred out

Prepare a cost reconciliation report for the Blending Department for June. (Round your intermediate calculations to 2 decimal places.)

Blending Department
Cost Reconciliation
Costs to be accounted for:
Total cost to be accounted for
Costs accounted for as follows:   
Total cost accounted for

In: Accounting

The following information for the past year is available from Thinnews Co., a company that uses...

The following information for the past year is available from Thinnews Co., a company that uses machine hours to apply factory overhead:

Actual total factory overhead cost $24,000
Actual fixed overhead cost $10,000
Budgeted fixed overhead cost $11,000
Actual machine hours 5,000
Standard machine hours for the units manufactured 4,800
Denominator volume—machine hours 5,500
Standard variable overhead rate per machine hour $3

1.The total actual variable factory overhead cost incurred during the year was:
2.The standard fixed overhead application rate is:

3. The variable factory overhead efficiency variance is:

4. The variable overhead spending variance is:

5. Under a three-variance breakdown (decomposition) of the total factory overhead variance, the total factory overhead spending variance is:

6. Under a two-variance breakdown (decomposition) of the total factory overhead variance, the total flexible-budget variance is:

In: Accounting

1. The Profit-maximizing Level of output for a perfectly competitive firm in the short run occurs...

1. The Profit-maximizing Level of output for a perfectly competitive firm in the short run occurs where:
a. marginal revenue equals price
B. Total revenue equals total cost
C.marginal cost equals price
D. Average revenue equals average total cost

2. Marginal revenue is a firms:
A. Ratio of the change in total revenue to change in output.
B. Profit per unit times the number of units sold
C. Ratio of average revenue to total revenue
D. Increase in profit when it sells an additional unit of output

3. In the short run, if P>ATC, a perfectly competitive firm:
A. Produces output and earns zero economic profit
B. Does not produce output and earns economic profit
C. Produces output and incurs an economic loss
D. Produces output and an economic profit
4. For a perfectly competitive firm in the short run if the firm produces the quantity at which:
A. P<ATC, then the firm breaks even
B. P>ATC, then the firm is profitable
C. P<ATC, then the firm is profitable
D. P=ATC, then the firm incurs a loss

5. Consider a perfectly competitive firm in the short run. Assume that it is sustaining a Canamak losses but continues to produce. At the profit maximizing (loss- minimizing) Output , All of these statements are correct EXCEPT:
A. Marginal cost is less than average total cost
B. Marginal cost is less than average variable cost
C. Price is equal to marginal cost
D. Marginal cost is equal to marginal revenue

In: Economics

Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and...

Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:

a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added.

Quality Control Activities Activity Cost Quality Cost Classification Value-Added/
Non-Value-Added
Classification
Billing error correction $48,600
Cable signal testing 114,000
Reinstalling service (installed incorrectly the first time) 104,600
Repairing satellite equipment 53,200
Repairing underground cable connections to the customer 31,600
Replacing old technology cable with higher quality cable 146,800
Replacing old technology signal switches with higher quality switches 167,800
Responding to customer home repair requests 58,400
Training employees 35,000
   Total activity cost $760,000

b. Prepare a cost of quality report. Assume that sales are $3,040,000. If required, round percentages to one decimal place.

Three Rivers Inc.
Cost of Quality Report
Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales
Prevention $ % %
Appraisal % %
Internal failure % %
External failure % %
Total $ % %

c. Prepare a value-added/non-value-added analysis.

Three Rivers Inc.
Value-Added/Non-Value-Added Activity Analysis
Category Amount Percent
Value-added $ %
Non-value-added %
Total $ %

d. What percentage of total costs of quality are considered to be value-added?

In: Accounting