Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need direct answer just to compare with my solutions Thanks ================================================== Bristo Corporation has sales of 2,500 units at $50 per unit. Variable expenses

I need direct answer just to compare with my solutions

Thanks

==================================================

Bristo Corporation has sales of 2,500 units at $50 per unit. Variable expenses are 20% of the selling price. If total fixed expenses are $90,000, the degree of operating leverage is:

===============================

Farris Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $116
Units in beginning inventory 0
Units produced 9,000
Units sold 8,600
Units in ending inventory 400

Variable costs per unit:
Direct materials $ 19
Direct labor $ 61
Variable manufacturing overhead $ 7
Variable selling and administrative expense $ 11
Fixed costs:
Fixed manufacturing overhead $135,000
Fixed selling and administrative expense $ 8,900

What is the net operating income (loss) for the month under variable costing?

====================================================================

Gabuat Corporation, which has only one product, has provided the following data concerning its most recent month of operations:

Selling price $ 164
Units in beginning inventory 0
Units produced 3,700
Units sold 3,260
Units in ending inventory 440

Variable costs per unit:
Direct materials $ 51
Direct labor $ 32
Variable manufacturing overhead $ 6
Variable selling and administrative expense $ 6
Fixed costs:
Fixed manufacturing overhead $88,800
Fixed selling and administrative expense $32,600

The total gross margin for the month under the absorption costing approach is:

=======================================================

Krepps Corporation produces a single product. Last year, Krepps manufactured 27,120 units and sold 21,800 units. Production costs for the year were as follows:

Direct materials $222,384
Direct labor $124,752
Variable manufacturing overhead $208,824
Fixed manufacturing overhead $461,040

Sales totaled $915,600 for the year, variable selling and administrative expenses totaled $128,620, and fixed selling and administrative expenses totaled $197,976. There was no beginning inventory. Assume that direct labor is a variable cost.

Under variable costing, the company's net operating income for the year would be:

=========================================================================

Mio Canoe Livery rents canoes and transports canoes and customers to and from their canoe trip on a local river. The trip is priced at $20 per person and has a CM ratio of 30%. Mio's fixed expenses are $84,000. Last year, sales were $400,000 and profit was $36,000. How many units need to be sold to break-even, and how many need to be sold to earn a profit of $42,000?

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_2

Step: 3

blur-text-image_3

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

Managerial Accounting

Authors: Susan V. Crosson, Belverd E. Needles

8th Edition

9780618777174, 618777180, 618777172, 978-0618777181

More Books

Students also viewed these Accounting questions

Question

c. What steps can you take to help eliminate the stress?

Answered: 1 week ago