Accounting $2120$

Ch $20$ Cost Volume Profit Analysis Assignment $1$

Aldredge Company sells Product Z for $$35.$ VC$/$unit are $$19\mathrm{.}25$ and FC are $$228,375$

a$.$ What is the CM$/$unit$?$

b$.$ What is the BE in units?

c$.$ What is the CMRatio?

d$.$ Using the CM Ratio, what is the BE in dollars

a$.$ Find the BE in Sales Units using the following data:

SPUnit: $$48\mathrm{.}00$; VC$/$Unit: $$14\mathrm{.}40$; FC: $$453,600$

b$.$ How much net income will the company have with the following sales levels?

$18,000$ units; $26,000$ units; $38,000$ units

Morrison Company's information is as follows:

$>$ SP: $$140,$ VC$/$Unit: $$91$; FC: $$588,000$

a$.$ What is the $C\frac{M}{?}$ Unit?

b$.$ What is the CM Ratio?

c$.$ What is the BE in Sales Units? Sales dollars?

d$.$ If Morrison would like a NI$-$of $$392,000,$ how many units must they sell?

Summit, Inc. expects sales of $$465,000.$ If $BE$ in sales dollars is $$235,000$ :

a$.$ What is their Margin of Safety? What does this mean?

b$.$ What is their Margin of Safety Ratio? What does this mean?

Keaubie Co$.$ sells Product Y for $$25\mathrm{.}00$ per unit. Variable costs per unit total $$15\mathrm{.}00.$ Fixed costs are $$150,000.$ Their target net income is $$200,000.$

a$.$ What is the contribution margin per unit? Contribution margin ratio?

b$.$ What is break$-$even in units? Dollars?

c$.$ What is target net income in units? Dollars?

d$.$ What is margin of safety? Margin of Safety Ratio?

Accounting $2120$

Ch$.20$ Cost Volume Profit Analysis Assignment $1$

Fern Company gathered the following information on power costs and factory machine usage for the last five months:

$\backslash$table$[[$Month$,$Power Cost,Factory Machine Hours$],[$January$,$$$48,000,19,000],[$February$,41,000,15,500],[$March$,47,000,18,500],[$April$,44,000,17,000],[$May$,40,000,15,000]]$

Instructions

Use the high$-$low method of analyzing costs to answer the following questions.

A$.$ How much is the estimated variable portion of power costs per factory machine hour?

B$.$ How much is the estimated fixed power cost each month?

C$.$ If it is estimated that $18,000$ factory machine hours will be run in June, what is the expected total power costs for June?

xt Predictions: On

Accessibility: Good to go

${?}^1$ Focus