Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company's monthly fixed
Krueger Corporation manufactures a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company's monthly fixed expense is $31,750. Required: 1. Calculate the unit sales needed to attain a target profit of $8,450. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,700. (Round your intermediate calculations to the nearest whole number.) units 1. Units sales to attain target profit 2. Dollar sales to attain target profit Sun & Ski Corporation is the producer of a ski goggle. Next period's budget data appear below: Selling price per unit Variable expense per unit Fixed expense per month Unit sales per month $ 26 $ 14 $ 9,720 960 Required: 1. What is the company's margin of safety? (Do not round intermediate calculations.) 2. What is the company's margin of safety as a percentage of its sales? (Round your percentage answer to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) 1. Margin of safety (in dollars) 2. Margin of safety percentage % Beaches Resort is an all-inclusive resort located in the Caribbean. The business is highly seasonal, with peaks occuring during spring and late fall. Following is the data for the past year of the resort's total electrical costs and the number of occupancy days. Month January February March April May June July August September October November December Occupancy-Days 3,030 3,080 3,980 1,630 1,270 2,110 650 3,690 1,960 4,410 1,600 2,230 Electrical Costs $ 9,044 $ 9,234 $11,913 $ 6,194 $ 4,826 $ 8,018 $ 2,470 $11,552 $ 7,448 $12,998 $ 6,080 $ 8,474 Required: 1. Using the high-low method, estimate the fixed cost of electricity per month and the variable cost of electricity per occupancy-day. (Do not round your intermediate calculations. Round your Variable cost answer to 2 decimal places and Fixed cost element answer to nearest whole dollar amount.) per occupancy-day Variable cost of electricity Fixed cost of electricity per month 2. What other factors in addition to occupancy-days are likely to affect the variation in electricity costs from month to month? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) ? Systematic factors like guests, switching off fans and lights. ? Number of days present in a month. ? Income taxes paid on hotel income. ? Seasonal factors like winter or summer. ? Fixed salary paid to hotel receptionist
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started