Question
6. Brandon Foods produces a gourmet condiment which sells for $32 per unit. Variable costs are $12 per unit, and fixed costs are $10,000 per
6. Brandon Foods produces a gourmet condiment which sells for $32 per unit. Variable costs are $12 per unit, and fixed costs are $10,000 per month. If Divine expects to sell 3,000 units, compute the margin of safety in units?
7. Never Ever Clean Inc. provides housekeeping services. The following financial data has been provided. Service Revenue $100,000 Cleaning Supplies Used 45,000 Wages Expense 40,700 Office Rent Expenses 10,500 Depreciation Machinery 1500 Calculate the operating income of the company?
8. Kitty Kat blenders Company sold 4,000 units in October at a price of $45 per unit. The variable cost is $25 per unit. The monthly fixed costs are $15,000. What is the operating income earned in October? 9. Doggy Company sells plastic bowls at a wholesale price of $4.50 per unit. The variable cost of manufacture is $1.75 per unit. The monthly fixed costs are $7,500. Its current sales are 25,000 units per month. If the company wants to increase its operating income by 20%, how many additional units, must it sell? (Round intermediate calculations to two decimal places.)
10. Jagger Dane Inc. manufactures water bottles for children. Similar water bottles are available in the market for $5. Jagger Dane desires a 20% net profit margin. Jagger Danes target cost is ________.
11. Everly Drew Inc. manufactures widgets. The target sales price is $600 per unit. The company desires a 30% net profit margin on its products. What is the company's target full-product cost per unit using target pricing?
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