1. a. If Swannanoa Company's budgeted sales are $1,000,000, fixed costs are $350,000, and variable costs are $600,000, what is the budgeted contribution margin ratio? b. If the contribution margin ratio is 30% for Swannanoa Company, sales are $900,000, and fixed costs are $200,000, what is the operating profit? 2. For the current year ending April 30, Hal Company expects fixed costs of $60,000, a unit variable cost of $70, and a unit selling price of $105. a. Compute the anticipated break-even sales (units). b. Compute the sales (units) required to realize an operating profit of $8,000. 3. For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70 per unit is expected to remain the same. 3. For the current year ending January 31, Harp Company expects fixed costs of $188,500 and a unit variable cost of $51.50. For the coming year, a new wage contract will increase the unit variable cost to $55.50. The selling price of $70 per unit is expected to remain the same. a. Compute the break-even sales (units) for the current year. b. Compute the anticipated break-even sales (units) for the coming year, assuming the new wage contract is signed. 4. Currently, the unit selling price is $50; the variable cost, $34; and the total fixed costs, $106,000. A proposal is being evaluated to increase the selling price to $54. a. Compute the current break-even sales (units). Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. b. 5. For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine (a) the break-even point in units of sales, (b) the unit sales required to realize operating income of $150,000, and (c) the probable operating income if sales total $500,000. 6. For the past year, Pedi Company had fixed costs of $70,000, unit variable costs of $32, and a unit selling price of $40. For the coming year, no changes are expected in revenues and costs, except that property taxes are expected to increase by $10,000. Determine the break-even sales (units) for (a) the past year and (b) the coming year. 7. For the past year, Hornbostel Company had fixed costs of $6,552,000, a unit variable cost of $444, and a unit selling price of $600. For the coming year, no changes are expected in revenues and costs, except that a new wage contract will increase variable costs by $6 per unit. Determine the break-even sales (units) for (a) the past year and (b) the coming year. 8. Perfect Stampers makes and sells aftermarket hub caps. The variable cost for each hub cap is $4.75 and the hub cap sells for $9.95. Perfect Stampers has fixed costs per month of $2,750.00. Compute the contribution margin per unit and break-even sales in units and in dollars for the month. 9 Perfect Stampers has collected new data over the last 3 months to perform an analysis of their budgeting and cost computations: $5,500 Average production labour cost per month $1,475 Average raw materials consumed per month $500 Average utilities for the production facility per month $1,950 Variable indirect manufacturing overhead costs per month Fixed costs per month $2,750 Average production volume in units 1,925 hub caps Selling price per hub cap $9.95 each Compute the unit variable cost, the contribution margin per unit, and the break-even point in units? 10. A company with a break-even point at $900,000 in sales revenue and had fixed costs of $225,000. When actual sales were $1,000,000 variable costs were $750,000. Determine (a) the margin of safety expressed in dollars, (b) the margin of safety expressed as a percentage of sales, (c) the contribution margin ratio, and (d) the operating income. m the Internet can contain viruses. 11. At the beginning of the period, the Cutting Department budgeted direct labour of $30,000 and supervisor salaries of $20,000 for 4,000 hours of production. The department actually completed 5,000 hours of production. Determine the budget for the department assuming that it uses flexible budgeting? 12. Crow Manufacturers, Inc. projected sales of 75,000 bicycles for 2009. The estimated January 1, 2009, inventory is 5,000 units, and the desired December 31, 2009, inventory is 8,000 units. What is the budgeted production (in units) for 2009? 13. Greenleaf Manufacturers, Inc. projected sales of 70,000 machines for 2010. The estimated January 1, 2010, inventory is 7,000 units, and the desired December 31, 2010, inventory is 12,000 units. What is the budgeted production (in units) for 2010? 14. Magnolia, Inc. manufactures bedding sets. The budgeted production is for 55,000 comforters in 2010. Each comforter requires 7 metres of material. The estimated January 1, 2010, beginning inventory is 31,000 metres. The desired ending balance is 30,000 metres of material. If the material costs $4.00 per metre, determine the materials budget for 2010. 15. Sweet Dreams, Inc. manufactures bedding sets. The budgeted production is for 52,000 comforters in 2010. Each comforter requires 1.5 hours to cut and sew the material. If cutting and sewing labour costs $11.00 per hour, determine the direct labour budget for 2010