Questions
. You are considering starting a walk-in clinic. Your financial projections for the first year of...
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. You are considering starting a walk-in clinic. Your financial projections for the first year of operations are as follows: |
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Number of Visits |
25,000 |
Utilities |
$4,500 |
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Wages and Benefits |
$290,000 |
Medical Supplies |
$45,000 |
|
Rent |
$10,000 |
Administrative Supplies |
$10,000 |
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Depreciation |
$40,000 |
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Assume that all costs are fixed except supplies costs, which are variable. |
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a. What is the clinic’s underlying cost structure? b. What are the clinics expected total cost? c. What are the clinic’s estimated total cost at 7,500 visits? At 12,500 visits? |
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In: Accounting
****Please type out the answer. Compute net operating income under absorption costing based on the following...
****Please type out the answer.
Compute net operating income under absorption costing based on
the following data.
Unit cost for direct
materials
$10
Unit cost for direct
labor
15
Unit cost for variable manufacturing
overhead
7
Unit variable selling and administrative
expense 2
Total fixed manufacturing overhead $100,000
Total fixed selling and administrative expense 80,000
Units in beginning
inventory
0
Units
produced
25,000
Units
sold
22,000
Unit selling price $70
In: Accounting
Common size and trend percents for Rustynail Company s sales,cost of goods sold,and expenses follow. Common...
Common size and trend percents for Rustynail Company s
sales,cost of goods sold,and expenses follow. Common size percents.
2017 sales 100 % 2016 sales 100 %,2015 sales 100 %. Cost of goods
sold 2017. 63.1 . 2016 60.9. 2015. 57.4. Total expenses. 2017 ,
14.3 , 2016. 13.8. 2015. 14.1
Trend percents.
2017.
2016
2015
sales.
104.5%
103.3 % 100
cost of goods sold
114.9.
109.6. 100
total expenses. 106.1. 101.1. 100
In: Accounting
Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the...
Cost of Goods Manufactured for a Manufacturing Company Two items are omitted from each of the following three lists of cost of goods manufactured statement data. Determine the amounts of the missing items, identifying them by letter. Work in process inventory, August 1 $2,300 $18,600 (e) Total manufacturing costs incurred during August 15,200 (c) 108,800 Total manufacturing costs (a) $217,600 $118,100 Work in process inventory, August 31 3,300 45,700 (f) Cost of goods manufactured (b) (d) $99,200
In: Accounting
A firm can sell 15,000 units per year at $ 12.50 per piece. The company fixed...
A firm can sell 15,000 units per year at $ 12.50 per piece. The company fixed cost Per year is $45,000. Variable cost is $7 per unit.
They raise the price to $15 and demand drops to 10000.
e. What is the new markup (profit margin %) on the sales price ($15)?
f. What is the new mark up (profit margin %) on total cost?
g. Please calculate the total profit for this company as well as the profit per each toy sold.
h. Are they better off raising the price?
In: Operations Management
Raphael's profit is maximized when he produces _______ frying pans.
3. Profit maximization using total cost and total revenue curves
Suppose Raphael runs a small business that manufactures frying pans. Assume that the market for frying pans is a competitive market, and the
market price is $20 per frying pan.
The following graph shows Raphael's total cost curve.
Use the blue points (circle symbol) to plot total revenue and the green points (triangle symbol) to plot profit for frying pans quantities zero through seven (inclusive) that Raphael produces.
Calculate Raphael's marginal revenue and marginal cost for the first seven frying pans he produces, and plot them on the following graph. Use the blue points (circle symbol) to plot marginal revenue and the orange points (square symbol) to plot marginal cost at each quantity.
Raphael's profit is maximized when he produces _______ frying pans. When he does this, the marginal cost of the last frying pan he produces is _______ which is _______ than the price Raphael receives for each frying pan he sells. The marginal cost of producing an additional frying pan
(that is, one more frying pan than would maximize his profit) is _______ .which is _______ than the price Raphael receives for each frying pan
he sells. Therefore, Raphael's profit-maximizing quantity corresponds to the intersection of the ______________ curves.
Because Raphael is a price taker, this last condition can also be written as _______ .
In: Economics
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells...
Kubin Company's relevant range of production is 23,000 to 27,500 units. When it produces and sells 25,250 units, its average costs per unit are as follows
| Direct Materials | $8.30 |
| Direct Labor | $5.30 |
| Variable Manufacturing Overhead | $2.80 |
| Fixed Manufacturing Overhead | $6.30 |
| Fixed Selling Expense | $4.80 |
| Fixed Administrative Expense | $3.80 |
| Sales Commissions | $2.30 |
| Variable Administrative Expense | $1.80 |
Required
1. If 23,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 27,500 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 23,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 27,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 23,000 units are produced, what is the average fixed manufacturing cost per unit produced
6. If 27,500 units are produced, what is the average fixed manufacturing cost per unit produced
7. If 23,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this?
8. If 27,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this?
(Round per unit values to 2 decimal places)
In: Accounting
Kubin Company's relevant range of productions is 25,000 to 33,500. When it produces and sells 29,500...
Kubin Company's relevant range of productions is 25,000 to 33,500. When it produces and sells 29,500 units it average costs per unit are as follows:
| Amount per Unit | ||
| Direct materials | $ | 8.50 |
| Direct labor | $ | 5.50 |
| Variable manufacturing overhead | $ | 3.00 |
| Fixed manufacturing overhead | $ | 6.50 |
| Fixed selling expense | $ | 5.00 |
| Fixed administrative expense | $ | 4.00 |
| Sales commissions | $ | 2.50 |
| Variable administrative expense | $ | 2.00 |
1. If 25,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 33,500 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 25,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 33,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 25,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 33,500 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 25,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 33,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
In: Accounting
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing...
Doede Corporation uses activity-based costing to compute product margins. In the first stage, the activity-based costing system allocates two overhead accounts--equipment depreciation and supervisory expense--to three activity cost pools--Machining, Order Filling, and Other--based on resource consumption. Data to perform these allocations appear below:
Overhead costs:
| Equipment depreciation | $ | 82,000 | |||||
| Supervisory expense | $ | 12,100 | |||||
Distribution of Resource Consumption Across Activity Cost Pools:
| Activity Cost Pools | |||||
| Machining | Order Filling | Other | |||
| Equipment depreciation | 0.60 | 0.30 | 0.10 | ||
| Supervisory expense | 0.60 | 0.20 | 0.20 | ||
In the second stage, Machining costs are assigned to products using machine-hours (MHs) and Order Filling costs are assigned to products using the number of orders. The costs in the Other activity cost pool are not assigned to products.
Activity:
| MHs (Machining) |
Orders (Order Filling) |
|
| Product W1 | 5,480 | 197 |
| Product M0 | 19,500 | 948 |
| Total | 24,980 | 1,145 |
Finally, sales and direct cost data are combined with Machining and Order Filling costs to determine product margins.
Sales and Direct Cost Data:
| Product W1 | Product M0 | |||||||||
| Sales (total) | $ | 71,600 | $ | 65,200 | ||||||
| Direct materials (total) | $ | 30,000 | $ | 14,900 | ||||||
| Direct labor (total) | $ | 21,900 | $ | 26,000 | ||||||
What is the product margin for Product W1 under activity-based costing? (Round your intermediate calculations to 2 decimal places.)
In: Accounting
Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells...
Kubin Company’s relevant range of production is 28,000 to 31,500 units. When it produces and sells 29,750 units, its average costs per unit are as follows:
| Amount per Unit | ||
| Direct materials | $ | 8.80 |
| Direct labor | $ | 5.80 |
| Variable manufacturing overhead | $ | 3.30 |
| Fixed manufacturing overhead | $ | 6.80 |
| Fixed selling expense | $ | 5.30 |
| Fixed administrative expense | $ | 4.30 |
| Sales commissions | $ | 2.80 |
| Variable administrative expense | $ | 2.30 |
Required:
1. If 28,000 units are produced and sold, what is the variable cost per unit produced and sold?
2. If 31,500 units are produced and sold, what is the variable cost per unit produced and sold?
3. If 28,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
4. If 31,500 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?
5. If 28,000 units are produced, what is the average fixed manufacturing cost per unit produced?
6. If 31,500 units are produced, what is the average fixed manufacturing cost per unit produced?
7. If 28,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
8. If 31,500 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?
In: Accounting