Questions
Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,900 portable grills, 53,000 stationary grills, and 5,300 smokers. Information on the three models is as follows:

Portable

Stationary

Smokers

Price $92 $201 $251
Variable cost
per unit 43 132 137

Total fixed cost is $2,016,120.

Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.

In: Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,300 portable grills, 45,900 stationary grills, and 5,100 smokers. Information on the three models is as follows:

Portable

Stationary

Smokers

Price $86 $205 $245
Variable cost
per unit 40 133 143

Total fixed cost is $1,873,680.

Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.

In: Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,000 portable grills, 45,000 stationary grills, and 5,000 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $89 $196 $255 Variable cost per unit 45 126 141 Total fixed cost is $1,918,440. Required: 1. What is the sales mix of portable grills to stationary grills to smokers? 2. Compute the break-even quantity of each product. 3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar. 4. Compute the margin of safety for the coming year.

In: Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 15,900 portable grills, 47,700 stationary grills, and 5,300 smokers. Information on the three models is as follows:

Portable

Stationary

Smokers

Price $86 $201 $254
Variable cost
per unit 44 135 136

Total fixed cost is $1,835,220.

Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.

In: Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 18,400 portable grills, 46,000 stationary grills, and 4,600 smokers. Information on the three models is as follows: Portable Stationary Smokers Price $92 $201 $252 Variable cost per unit 45 135 144 Total fixed cost is $2,064,960. Required:

1. What is the sales mix of portable grills to stationary grills to smokers?

2. Compute the break-even quantity of each product.

3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.

4. Compute the margin of safety for the coming year.

In: Accounting

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill,...

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 21,200 portable grills, 47,700 stationary grills, and 5,300 smokers. Information on the three models is as follows:

Portable Stationary Smokers
Price $88 $201 $246
Variable cost
per unit 48 130 138

Total fixed cost is $1,904,700.

Required:
1. What is the sales mix of portable grills to stationary grills to smokers?
2. Compute the break-even quantity of each product.
3. Prepare an income statement for Texas-Q for the coming year. What is the overall contribution margin ratio? Use the contribution margin ratio to compute overall break-even sales revenue. Enter the contribution margin ratio as a percentage rounded to two decimal places; round the break-even sales revenue to the nearest dollar.
4. Compute the margin of safety for the coming year.

In: Accounting

Target Costing Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $575 and...

Target Costing

Laser Impressions, Inc., manufactures color laser printers. Model J20 presently sells for $575 and has a total product cost of $460, as follows:

Direct materials $330
Direct labor 90
Factory overhead 40
Total $460

It is estimated that the competitive selling price for color laser printers of this type will drop to $550 next year. Laser Impressions has established a target cost to maintain its historical markup percentage on product cost. Engineers have provided the following cost-reduction ideas:

Purchase a plastic printer cover with snap-on assembly, rather than with screws. This will reduce the amount of direct labor by 9 minutes per unit.

Add an inspection step that will add six minutes per unit of direct labor but reduce the materials cost by $12 per unit.

Decrease the cycle time of the injection molding machine from four minutes to three minutes per part. Thirty percent of the direct labor and 40% of the factory overhead are related to running injection molding machines.

The direct labor rate is $38 per hour.

a. Determine the target cost for Model J20 assuming that the historical markup on product cost and selling price are maintained. Round your final answer to two decimal places.
$

b. Determine the required cost reduction. Enter as a positive number. Round your final answer to two decimal places.
$

c. Evaluate the three engineering improvements together to determine if the required cost reduction (drift) can be achieved. Enter all amounts as positive numbers. Do not round interim calculations but round your final answers to two decimal places.

1. Direct labor reduction $
2. Additional inspection $
3. Injection molding productivity improvement $
Total savings

$

roduct Decisions Under Bottlenecked Operations

Youngstown Glass Company manufactures three types of safety plate glass: large, medium, and small. All three products have high demand. Thus, Youngstown Glass is able to sell all the safety glass that it can make. The production process includes an autoclave operation, which is a pressurized heat treatment. The autoclave is a production bottleneck. Total fixed costs are $188,000 for the company as a whole. In addition, the following information is available about the three products:

   Large    Medium    Small
Unit selling price $61 $248 $365
Unit variable cost 48 203 321
Unit contribution margin $ 13 $ 45 $ 44
Autoclave hours per unit 2 6 4
Total process hours per unit 4 12 12
Budgeted units of production 4,100 4,100 4,100

a. Determine the contribution margin by glass type and the total company income from operations for the budgeted units of production.

Large      Medium      Small      Total     
Units produced
Revenues $ $ $ $
Variable costs
Contribution margin $ $ $ $
Fixed costs
Income from operations $

b. Prepare an analysis showing which product is the most profitable per bottleneck hour. Round the "Unit contribution margin per production bottleneck hour" amounts to the nearest cent.

Large     Medium     Small    
Contribution margin $ $ $
Autoclave hours per unit
Unit contribution margin per production bottleneck hour $ $

$

Total Cost Method of Product Pricing

Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 7,500 units of cell phones are as follows:

Variable costs: Fixed costs:
    Direct materials $ 75 per unit     Factory overhead $283,100
    Direct labor 35     Selling and administrative expenses 99,400
    Factory overhead 23
    Selling and administrative expenses 17
         Total variable cost per unit $150 per unit

Smart Stream desires a profit equal to a 16% return on invested assets of $791,440.

a. Determine the total cost and the total cost amount per unit for the production and sale of 7,500 units of cellular phones. Round the cost per unit to two decimal places.

Total cost $
Total cost amount per unit $

b. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones.
%

c. Determine the selling price of cellular phones. Round to the nearest cent.
$ per cellular phone

In: Accounting

A developer wants to subdivide a parcel of land into 35 lots to be used for...

A developer wants to subdivide a parcel of land into 35 lots to be used for residential construction. The projected sale price of the developed lots is $1,000,000. The site development costs are set forth below: (5points). Development costs $300,000 Management and supervision 15,000 Contractor’s overhead and profit 100,000 Sales Expense 35,000 Taxes 20,000 Entrepreneurial profit 50,000 TOTAL $520,000 What value is indicated if the development and marketing period is projected to be three years and the market-derived discount rate is 8%?

In: Finance

Write about history of Heron's fountain using around 200 words, discuss the construction process using 500...

Write about history of Heron's fountain using around 200 words, discuss the construction process using 500 words (make sure to include pictures, you can draw them or find them online) discuss using physics concepts and mathematical equations, and then discuss using around 500 words the application of heron's fountain and its futher developments in science. You can include information about how a fountain works, explantions about hydraulics and pneuamtics.

In: Physics

The reserve ratio is 20 percent. The Fed buys $1 million in government securities from a...

The reserve ratio is 20 percent. The Fed buys $1 million in government securities from a bond dealer by transmitting the funds to the dealer's deposit account at Bank A. Bank A makes the maximum loan possible to a construction company, which buys materials with the loan. The check is deposited in Bank B, which loans out all it can to a car dealership. To this point, the money supply has increased by.. A)$1 million B)$1.8 million C)$2.44 million D)$3 million.

In: Economics