Edelbert's Bake Shop is divided into three departments, Mixing, Baking and Icing The Baking Division sells 80 of its output to Icing Division and the balance to outside customers who want to decorate the cake on their own The selling price to outside customers is 80 per unit Some data pertaining to the Baking Department's production are presented below Output1,000 Materials30,000 Labor20,000 Overhead10,000 Selling Expenses5,000 Administrative expenses5,000 Required Compute the price that must be charged by the Baking Division to the Icing Division assuming The Baking Division desires to generate profit of 20 on sales 2 The Dog Hut hot dog stand expects the following operating results for next year Sales280,000 Net operating income21,000 CM ratio70 What is Dog Hut's break even point next year in sales dollars 3 A company produces a single product Variable production costs are P12 per unit and variable selling and administrative expenses are P3 per unit Fixed manufacturing overhead totals P36,000 and fixed selling and administration expenses total P40,000 Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 28, 2024

Edelbert's Bake Shop is divided into three departments, Mixing, Baking and Icing.The Baking Division sells 80% of its output to Icing Division and the balance

Edelbert's Bake Shop is divided into three departments, Mixing, Baking and Icing.The Baking Division sells 80% of its output to Icing Division and the balance to outside customers who want to decorate the cake on their own.The selling price to outside customers is 80 per unit.Some data pertaining to the Baking Department's production are presented below.

Output1,000

Materials30,000

Labor20,000

Overhead10,000

Selling Expenses5,000

Administrative expenses5,000

Required:Compute the price that must be charged by the Baking Division to the Icing Division assuming:

The Baking Division desires to generate profit of 20% on sales.

2. The "Dog Hut" hot dog stand expects the following operating results for next year:

Sales280,000

Net operating income21,000

CM ratio70%

What is Dog Hut's break-even point next year in sales dollars?

3.A company produces a single product. Variable production costs are P12 per unit and variable selling and administrative expenses are P3 per unit. Fixed manufacturing overhead totals P36,000 and fixed selling and administration expenses total P40,000. Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be: