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looking for some help, thank you Honeysuckle Manufacturing has the following data: Selling Price Variable manufacturing cost Fixed manufacturing cost Variable selling & administrative costs
looking for some help, thank you
Honeysuckle Manufacturing has the following data: Selling Price Variable manufacturing cost Fixed manufacturing cost Variable selling & administrative costs Fixed selling & administrative costs $ 120 51 $262,000 per month $ 33 $144,000 per month What dollar sale volume does Honeysuckle need to achieve a $68,000 operating profit per month? What dollar sales volume does Honeysuckle need to achieve a $68,000 operating profit per month? Multiple Choice O $1,580,000 $8,532,000 $1,053,333 $1,391,907 Item 151 is used in one of Policy Corporation's products. The company makes 20,600 units of this item each year. The company's Accounting Department reports the following costs of producing Item 151 at this level of activity: Direct materials Direct labor Variable manufacturing overhead Supervisor's salary Depreciation of special equipment Allocated general overhead Per Unit $1.85 52.85 $3.95 $1.65 $3.35 $9.15 An outside supplier has offered to produce Item 151 and sell it to the company for $18.40 each of this offer is accepted the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the item was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fored costs of the entire company. If the outside supplier's offer were accepted only $31,200 of these allocated general overhead costs would be avoided. If management decides to buy Item 151 from the outside supplier rather than to continue making the item, what would be the annual impact on the company's overall net operating income? Multiple Choice Net operating Income would decline by $121190 per year. Net operating Income would decline by $89,990 per year. 47 Net operating income would decline by $135.660 per year. Net operating Income would decline by S58.790 per year Step by Step Solution
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