Following figures (table shown below) are available from XYZ campany: Selling Price S per unit Varnable cost, S per unit 80 30 Match the following questions with the closest correct answers from the given list. 1. What is the unit contribution margin? 2. What is break-even point in sales dollars? 3. How many units would the company have to sell to attain target profits of $120,000? 4. The company currently sells 10,000 units. If sales increase by 200 units, by how much should net operating income increase? The XYZ Company manufactures and sells one product. The product has the following cost and revenue data: Per Unit (AED 230 82.80 Selling price Variable cost Total fixed expenses per month are as follows AED 300,000 300,000 46.208 Advertising Rent Heating The company produced and sold 5.000 units during the month and had no beginning or ending inventories a) Calculate the Break-even point in units b) Calculate the break-even in terms of sales revenue c) Calculate the sales in units required to achieve a profit of AED 825,792 d) Calculate the sales in terms of sales revenue required to achieve a profit of AED 825,792. e) The marketing manager thinks that an AED 15 per unit decrease in selling price, combined with AED 60,000 increase in advertising will cause monthly sales in units to increase by 20%. Should these changes be made? Honey Corporation, a merchandising company, reported the following results for January 5,800 S892 S517 S31 $152,600 $48 Number of units sold. Selling price per unit Unit cost of goods sold Variable selling expense per unit Total fixed selling expense Total fixed administrative expense$390.200 Cost of goods sold is a variable cost in this company Required a. Prepare a traditional format income statement for January b. Prepare a contribution format income statement for January. i A cement manufacturer has supplied the following data: Tons of cement produced and sld.60.000 Sales revenue Variable manufacturing expense Fixed manufacturing expense Variable selling and administrative expense Fixed selling and administrative expense... Net operating income. S1.118,000 5429,000 $288,000 $91,900 $228,000 $82.000 Required: a. What is the company's unit contribution margin? b. What is the company's contribution margin ratio? c. If the company increases its unit sales volume by 3% without increasing its fixed expenses, what will total net operating income be? Hirt Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sell to generate a target profit (net operating income) of $80,000? Pellman Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced.1,000 Variable costs per unit: $12 $13 S7 S8 Direct materials. Direct labor Variable manufacturing overhead... Variable selling and administrative expense.. Fixed costs: Fixed manufacturing overhead..$40,000 Fixed selling and administrative expense..$11,000 There were no beginning or ending inventories. 1. The unit product cost under absorption costing was: 2. The unit product cost under variable costing was: 180. The EG Company produces and sells one product. The following data refer to the year just completed: Beginning inventory Units produced.. 25,000 Units sold.. 20,000 $400 S15 Sales price per unit Selling and administrative expenses: Variable per unit Fixed (tot $275,000 Manufacturing costs: Direct materials cost per unit.... Direct labor cost per unit Variable manufacturing overhead cost per unit Fixed manufacturing overhead (total)300,000 $200 S50 S30 Required a. Compute the cost of a single unit of product under both the absorption costing and variable costing approaches. b. Prepare an income statement for the year using absorption costing. c. Prepare a contribution format income statement for the year using variable costing. d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above. 182. Leigh Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price $100 Units in beginning inventory Units produced. Units sold.. Units in ending inventery 300 1,200 1,400 100 Variable costs per unit: Direct materials.. Direct laber Variable manufacturing overhead. Variable selling and administrative. S17 inw59 S4 S8 Fixed costs: Fixed manufacturing overhead s9.600 Fixed selling and administrative.51,400 The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month. Required: a. Prepare a contribution format income statement for the month using variable costing b. Prepare an income statement for the month using absorption costing. e. Reconcile the variable costing and absorption costing net operating incomes for the month. 185. Hubiak Corporation produces a single product and has the following cost structure: Number of units produced each year Variable costs per unit: 2.000 Direct Direct labor. Variable manufacturing overhead Variable selling and administrative expenses materials.. S32 553 S8 Si Fixed costs per year Fixed manufacturing overhead $74,000 Fixed selling and adninistratine espes. $154.00 Required: Compute the unit product cost under absorption costing. Show your work 186. Hudalla Corporation produces a single product and has the following cost structure: Number of units produced each year1,000 Variable costs per unit: Direct materials Direct labor. Variable manufacturing overhead Variable selling and administrative expenses.. $48 S39 $7 S4 Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative expenses$93,000 $43,000 Required Compute the unit product cost under variable costing. Show your work! 139. Hugle Corporation's activity-based costing system has three activity cost pools-Machining. Setting Up, and Other. The company's overhead costs have already been allocated to these cost pools as follows: Machining.$15,200 Setting Up. $44,800 Other$16,000 Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting Up cost pool are assigned to products based on the number of batches. Costs in the Other cost pool are not assigned to products. The following table shows the machine-hours and number of batches associated with each of the company's two products: MHs Batches Product ES .2,000 800 8,000 200 10,000 1,000 Product V. Total Additional data concerning the company's products appears below Product E8 Product V8 $220,700 $165,500 $83,100 $58,000 Sales (total) $78,600 $89,600 Direct materials (total) Direct labor (total).. Required a. Calculate activity rates for each activity cost pool using activity-based costing. b. Determine the amount of overhead cost that would be assigned to each product using activity- based costing. c. Determine the product margins for each product using activity-based costing. 123. Roskam Housecleaning provides housecleaning services to its clients. The company uses an activity-based costing system for its overhead costs. The company has provided the following data from its activity-based costing system. Activity Cost Pool Total CostTotal Activity Cleaning.. Job support Client support. Other230,000 Not applicable $252,787 44,900 hours 73,7585,700 jobs 7,668 270 clients $564,213 Total The "Other" activity cost pool consists of the costs of idle capacity and organization-sustaining costs. One particular client, the Haan family, requested 49 jobs during the year that required a total of 245 hours of housecleaning. For this service, the client was charged $2.500 Required per unit of activity) for the activity cost pools. Round off a Compute the activity rates (i e, cos all calculations to the nearest whole cent. b. Using the activity-based costing system, compute the customer margin for the Haan family Round off all calculations to the nearest whole cent. c. Assume the company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaning hours. Compute the margin for the Haan family. Round off all calculations to the nearest whole cent. Herbal Care Corp, a distributor of herb-based sun screens is ready to begin its third quarter, in which peak sales occur 1. On August 1 the company will have a cash balance of $44,500. 2. Sales are given as follow: Cash Sales Credit Sales $150,000 $200,000 $120,000 250,000 400,000 200,000 August September Past experience shows that 25% of a month's sales are collected in the month of sale, 75% in the month following sale. 3. Budgeted merchandise purchases are given below: September July August 175,000 $350,000 $240,000 Merchandise purchases 70% of the merchandise purchases are pain in cash in the month of purchase, and the balance due (30%) is paid in the month following the purchase. Budgeted expenses for the third quarter are given below: 4. September August 40,000 80,000 10,000 50,000 145,000 10,000 10,000 Salaries and wages Advertising Rent payments Equipment All expenses above are paid in the month. 5. The company needs a minimum cash balance of $20,000 to start each month. Any outstanding amount will be repaid at the end of the month when the company has enough cash to do so. Interest on borrowing is charged at 12% a year (1% per month). Required: Prepare a cash budget, by month (August, and September) Herbal Care Corp Cash Budget for August& September August September Beginning Cash Balance Cash Sales Credit Sales Total Cash available Merchandise Purchases Total Cash Disbursements/Payments Excess/ (Deficiency) of Cash Financing: Borrowings Repayments Interest Total Financing Ending Cash Balance