Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC corp has 2 plants to produce a single product that sells for a single price: $152. Variable manufacturing costs at plant A is 72

ABC corp has 2 plants to produce a single product that sells for a single price: $152. Variable manufacturing costs at plant A is 72 whereas plant B is 85. Fixed manufacturing costs per unit are 34 for plant A and 10 for plant B. Variable marketing costs are 8 for plant A and 12 for plant B whereas fixed distribution costs per unit are 22 and 15 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

What is the break even point, in units, for plant A?

ABC corp has 2 plants to produce a single product that sells for a single price: $157. Variable manufacturing costs at plant A is 70 whereas plant B is 90. Fixed manufacturing costs per unit are 35 for plant A and 15 for plant B. Variable marketing costs are 15 for plant A and 11 for plant B whereas fixed distribution costs per unit are 16 and 15 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

What is the total operating income if each plant produces 96,000 units?

ABC corp has 2 plants to produce a single product that sells for a single price: $160. Variable manufacturing costs at plant A is 76 whereas plant B is 83. Fixed manufacturing costs per unit are 26 for plant A and 12 for plant B. Variable marketing costs are 14 for plant A and 10 for plant B whereas fixed distribution costs per unit are 15 and 19 for plants A and B respectively. Total capacity for each plant is 400 units per day and 320 units per day for plants A & B respectively. The normal number of workdays for both plants is 240 days, but they can expand to 300 days if they use overtime, which increases variable manufacturing cost per unit by $3 at plant A, and $8 for plant B. All fixed cost per unit calculations are based on a normal capacity of 240 days.

What is the break even point, in units, for plant B?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Level Audit And Assurance Q And A 2020

Authors: ACA Simplified

1st Edition

B08924C516, 979-8648590489

More Books

Students also viewed these Accounting questions

Question

10-9 How have social technologies changed e-commerce?

Answered: 1 week ago