Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Current Designs Problems Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the

image text in transcribed
image text in transcribed
image text in transcribed
Current Designs Problems Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar Resin and supplies Finishing Kit (seat, rudder, ropes, etc.) Labor Selling and administrative expenses-variable Selling and administrative expenses-fixed Manufacturing overhead-fied $230 per kayak $190 per kayak $160 per kayak $450 per kayak $400 per kayak 5172400 per year $250,000 per year Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,300. Calculate variable costs per unit Variable costs per unit LINK TO TEXT LINK TO TERT LINK TO TEXT Determine the unit contribution margin. Determine the unit contribution margin. Contribution margin per unit LINK TO TEXT LINK TO TEKT LINK TO TEXT Using the unit contribution margin, determine the break-even point in units for this product line. Break-even point units LINK TO TEKT LINK TO TEXT LINK TO TEXY Assume that. Current Designs plans to earn net income of $978,450 on this product line. Using the unit contribution margin, calculate the number of units that need to be sold Number of units to be sold units LINK TO TEXT LINK TO TEXT LINK TO TEXT Assume that Current Designs plans to earn net income of $375,450 an this product line. Using the unit contribution margin, calculate the number of units that need to be sold to achieve this goal. Number of units to be sold units LINK TO TEXT LINK TO TEXT LINK TO TEXT Based on the most recent sales forecast, Current Designs plans to sell 1,000 units of this model. Calculate the margin of safety and the margin of safety ratio. (Round percentage to 1 decimal place, 25.5%) Margin of safety Margin of safety ratio Click If you would like to show Work for this question: One Show Work LINK TO TEXT LINK TO TEXT LINK TO TEXT

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

Cima P1 Management Accounting Study Text New 2019 Syllabus

Authors: Acorn Profession Tutors

1st Edition

B084ZZPF9N

More Books

Students also viewed these Accounting questions

Question

Journal entry worksheet Answered: 1 week ago

Answered: 1 week ago