Question
Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two
Hooper Corporation produces and sells two models of vacuum cleaners, Standard and Deluxe. The company records show the following monthly data relating to these two products:
Standard Deluxe
Selling price per unit $150 $165
Variable production costs 120 126
Variable selling expense per unit 16 13
Expected monthly sales in units 600 1,200
Total monthly fixed cost $15,000
1.The break-even in sales dollars for the expected sales mix is closest to:
a. 160,772
b. 95,178
c.175,644
d. 109,091
2.If the expected monthly sales in units were divided equally between the two models (900 Standard and 900 Deluxe), the break-even level of sales would be:
a. lower than with the expected sales mix
b. the same as with the expected sales mix
c. higher than with the expected sales mix
d. cannot be determined with the available data
Next question:
Pardise Company plans the following beginning and ending inventory levels (in units) for July:
July 1 July 30
Raw material 40,000 50,000
Work in process 10,000 10,000
Finished goods 80,000 50,000
*Two units of raw material are needed to produce each unit of finished product.
1.If Pardise Company plans to sell 480,000 units during July, the number of units it would have to manufacture during July would be:
a.510,000.
b.450,000.
c.440,000.
d.480,000.
2.If 500,000 finished units were to be manufactured during July, the units of raw material needed to be purchased would be:
a.1,020,000.
b.1,000,000.
c.1,010,000.
d.990,000.
Next question:
Roberts Enterprises has budgeted sales in units for the next five months as follows:
June: 4,500 units
July:7,100 units
August:5,300 units
September:6,700 units
October:3,700 units
Past experience has shown that the ending inventory for each month must be equal to 10% of the next month's sales in units. The inventory on May 31 contained 410 units. The company needs a production budget for the second quarter of the year.
1.The opening inventory in units for September is:
a.670.
b.370.
c.530.
d.6,700.
2.The total number of units to be produced in July is:
a.7,280.
b.6,920.
c.7,630.
d.7,100.
3.The desired ending inventory in units for August is:
a.710.
b.670.
c.370.
d.530.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started