Hi Tutor!

I was so happy with your help last time, I want to consider your help again?

Complete exercise 6-25 and problem 7-37 in the textbook.

Provided in xlsx-1.xlsx to be transfered to ACC650Module4-blank to help assist

I trust your judgement!

WHB ACC 650 Module 4 11232016 Name: 6-25 7-37 Identifying the correct Proper Proper format Well written amounts Calculations for numbers reponse 10.00 15.00 1.00 12.00 13.00 Score test test test test Total 26.00 25.00 - Format Legend Entry Points Checksums Feedback Score Corrected entry 51.00 Amt 6-16 Calc 15.00 10.00 Format 1.00 Resp - Jonathan Macintosh is a highly successful Pennsylvania orchardman who has formed his own company to and package applesauce. Apples can be stored for several months in cold storage, so apple-sauce produc relatively uniform throughout the year. The recently hired controller for the firm is about to apply the high-lo in estimating the company's energy cost behavior. The following costs were incurred during the past 12 mo Month January-01 February-01 March-01 April-01 May-01 June-01 July-01 August-01 September-01 October-01 November-01 December-01 Pints Produced 35,000 21,000 22,000 24,000 30,000 32,000 40,000 30,000 30,000 28,000 41,000 39,000 $ $ $ $ $ $ $ $ $ $ $ $ Energy Cost 23,400 22,100 22,000 22,450 22,900 23,350 28,000 22,800 23,000 22,700 24,100 24,950 Required: 1. Use the high-low method to estimate the company's energy cost behavior and express it in equa Production Cost High Production Low Production Variable Cost/Unit Fixed Cost 2. Predict the energy cost for a month in which 26,000 pints of applesauce are produced. Production Forecast Energy Cost Forecast Willard H Berry 9/14/2016 Total 26.00 - as formed his own company to produce torage, so apple-sauce production is m is about to apply the high-low method incurred during the past 12 months: Willard H Berry 9/14/2016 havior and express it in equation form. uce are produced. Willard H Berry 9/14/2016 Amt 7-37 Calc 10.00 Format ### Resp 5.00 Houston-based Advanced Electronics manufactures audio speakers for desktop computers. The follow-ing data relate to the period just ended when the company produced and sold 42,000 speaker sets: Sales Variable Costs Fixed Costs $ $ $ Units Sold Mexico Variable Cost/Unit Mexico Fixed Costs 3,360,000 840,000 2,280,000 42,000 $ $ 18.00 1,984,000 Management is considering relocating its manufacturing facilities to northern Mexico to reduce costs. Variable costs are expected to average $18 per set; annual fixed costs are anticipated to be $1,984,000. (In the following requirements, ignore income taxes.) Required: 1. Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the United States. Sales Variable Costs Fixed Costs (US) Income Target Income Sales Price/Unit Variable Cost/Unit Contribution Margin/Unit (US) Units Needed for Target Sales Level Needed 2. Determine the break-even point in speaker sets if operations are shifted to Mexico. Mexico Fixed Costs Sales Price/Unit Mexico Variable Cost/Unit Mexico Contribution Margin/Unit Mexico Break Even Units 3. Assume that management desires to achieve the Mexican break-even point; however, operatio a. If variable costs remain constant, what must management do to fixed costs? By how Sales in Units (Mexican Break Even) Contribution Margin/Unit (US) Fixed Costs for Break Even Fixed Cost (US) Fixed Cost Change b. If fixed costs remain constant, what must management do to the variable cost per un Sales in Units (Mexican Break Even) Sales Price Total Sales Fixed Costs (US) Total Variable Costs for Break Even Variable Cost/Unit for Break Even Variable Cost/Unit (US) Variable Cost/Unit Change 4. Determine the impact (increase, decrease, or no effect) of the following operating changes. a. Effect of an increase in direct material costs on the break-even point. b. Effect of an increase in fixed administrative costs on the unit contribution margin. c. Effect of an increase in the unit contribution margin on net income. d. Effect of a decrease in the number of units sold on the break-even point. Total 25.00 - esktop computers. The d and sold 42,000 speaker rn Mexico to reduce costs. anticipated to be f dollar sales needed to n the United States. hifted to Mexico. en point; however, operations will remain in the United States. do to fixed costs? By how much must fixed costs change? o to the variable cost per unit? By how much must unit variable cost change? wing operating changes. even point. unit contribution margin. t income. eak-even point. Increase Decrease No Effect Month January February March April May June July August September October November December Pints of Applesauce Produced 35,000 21,000 22,000 24,000 30,000 32,000 40,000 30,000 30,000 28,000 41,000 39,000 Energy Cost $ 23,400.00 $ 22,100.00 $ 22,000.00 $ 22,450.00 $ 22,900.00 $ 23,350.00 $ 28,000.00 $ 22,800.00 $ 23,000.00 $ 22,700.00 $ 24,100.00 $ 24,950.00 Use the high-low method to estimate the company's energy cost behavior and express it in equation for Variable cost per dozen bakery items = Diff between the costs correspondin to the highest and lowest activity lev Diff between the highest and lowes $28,000-$22,000 40,000-22,000 Month January February March April May June July August September October November December Annual Pints of Applesauce Produced 35,000 21,000 22,000 24,000 30,000 32,000 40,000 30,000 30,000 28,000 41,000 39,000 Energy Cost $ 23,400.00 $ 22,100.00 $ 22,000.00 $ 22,450.00 $ 22,900.00 $ 23,350.00 $ 28,000.00 $ 22,800.00 $ 23,000.00 $ 22,700.00 $ 24,100.00 $ 24,950.00 372,000 281,750.00 $ 124,000.00 $ 157,750.00 $ 8,666.67 $ 13,145.83 $ 21,812.50 express it in equation form en the costs corresponding est and lowest activity levels en the highest and lowest activity levels $ 6,000.00 18,000 0.33333 per unit Variable cost Fixed cost Energy cost for production of 26,000 pints of applesauce Fixed cost per month Total energy cost Sales Variable costs Fixed costs $ 3,360,000.00 $ 840,000.00 $ 2,280,000.00 Calculate the company's current income and determine the level of dollar sales needed to double that figure, assuming that manufacturing operations remain in the US. Sales Less: variable costs Contribution margin Less: fixed cost $ 3,360,000.00 $ (840,000.00) $ 2,520,000.00 $ (2,280,000.00) $ 240,000.00 Net income Contribution = Sales price- varibale cost $ 3,360,000.00 $ 42,000 $ 840,000.00 ### 80.00 $ Target sales = Fixed cost + Target profit/contribution 20.00 $ 60.00 $ 2,280,000.00 $ 840,000.00 Determine the break-even point in speaker sets if operations are shifted to Mexico Variable cost $18 Contribution = sales price -variable cost $ $ $ Breakeven point =fixed expenses/contribution 80.00 (18.00) 62.00 $ 1,984,000.00 $ 62.00 32,000 Breakeven point Assume that mangement desires to achieve the Mexican breakeven point: however operations will remain in the United St Variable cost remain constant Fixed cost remain constant Breakeven point and contribution will remain constant Contribution =Sales price -variabe cost Breakeven point = Fixed expenses/contribution $ 32,000 60.00 1,920,000 Breakeven point Breakeven point and fixed expenses will remain constant Breakeven point = Fixed expenses/contribution 2280000 32000 $ 71.25 $ (8.75) $ 20.00 $ 11.25 Determine the impact (increase, decrease, or no effect) of the following operating changes. Effect of an increase in direct material costs on the breakeven point. Increase Eddect of an increase in fixed administrative costs on the unit contribution margin No effect Effect of an increase in the unit contribution margin on net income Increase Effect of a decreae in the number of units sold on the breakeven point No effect $ $ 3,120,000.00 60.00 Target sales will remain in the United States. 52,000 Units $ 4,160,000.00 Contribution from Mexico Contribution =Sales price-variable cost Current variable cost Varibale cost necessary