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, 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, 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, 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, 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, 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 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 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 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 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