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consider the following information in your analysis: presents monthly data of units produced and sold and actual costs incurred for 24 months. Using this data
consider the following information in your analysis:
- presents monthly data of units produced and sold and actual costs incurred for 24 months. Using this data calculate the VC per unit and the total monthly FC.
- For each Costs listed in Exhibit 3 determine if each cost is a manufacturing cost or a non-manufacturing cost.
- If the Company expects to produce and sell 1500 units per month -
A - If the Selling Price is $100/unit What is the Contribution Margin /unit
B - How many units does the Company need to sell tp Breakeven
C - If the Sells 800 units What is the price it must set to Breakeven
Also consider the following:
- If the owners set a target profit of $25,000 per month ($300,000) per year to leave their current jobs What price must they set to achieve a profit of $25,000 per month
- What must the VC per unit be to achieve a profit of $25,000 per month.
- How many units must the Company sell to achieve a profit of $25,000
- What must total monthly FC be to achieve a profit of $25,000
- If the Company makes a deluxe model with a price of $156 and a VC of $100 compared to a price of $100 and VC of $60 for the basic model. With an anticipated sales mix of 60% basic model and 40% deluxe model how many units of each model must the company sell to Breakeven.
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Step: 1
Before answering the questions lets first categorize the costs in Exhibit 3 and calculate VC per uni...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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