Managerial Accounting

The Blanket Company (TBC) manufactures two types of blankets. One is made of nylon. The other is made of wool. The budgeted per- unit contribution margin for each product follows. Sales price Variable cost per unit Contribution margin per unit Nylon $148 (83) $ 65 Wool $200 (90) $110 TBC expects to incur annual fixed costs of $776,000. The relative sales mix of the products is 80 percent for Nylon and 20 percent for Wool. Required a. Determine the total number of products (units of Nylon and Wool combined) TBC must sell to earn a $112,000 profit b. How many units each of Nylon and Wool blankets must TBC sell to earn a $112,000 profit? c. Prepare an income statement using the contribution margin format Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine the total number of products (units of Nylon and Wool combined) TBC must sell to earn a $112,000 profit. Total number of products units RAGGA Required B > Fanning Manufacturing Company reported the following data regarding a product it manufactures and sells. The sales price is $48 $ Variable costs Manufacturing Selling Fixed costs Manufacturing Selling and administrative 18 per unit 4 per unit $154,000 per year $189,200 per year Required a. Use the per-unit contribution margin approach to determine the break-even point in units and dollars. b. Use the per-unit contribution margin approach to determine the level of sales in units and dollars required to obtain a profit of $187,200. c. Suppose that variable selling costs could be eliminated by employing a salaried sales force. If the company could sell 20,300 units, how much could it pay in salaries for salespeople and still have a profit of $187,200? (Hint: Use the equation method.) a. Break-even point in units Break-even point in dollars b. Required sales in units Required sales in dollars c. Fixed cost of salaries Required information [The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. Required a. Determine the contribution margin per unit. Contribution margin per unit Required information [The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell Incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. b. Determine the break-even point in units and in dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg B1 Reg B2 Determine the break-even point in units and in dollars. (Do not round intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Break-even point in units Break-even point in dollars (Reg B1 Req B2 > Required information (The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. c. Suppose that Campbell desires to earn a $268,000 profit. Determine the sales volume in units and dollars required to earn the desired profit. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg C1 Reg C2 Suppose that Campbell desires to earn a $268,000 profit. Determine the sales volume in units and dollars required to earn the desired profit. (Do not round Intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Sales volume in units Sales volume in dollars s Roqc1 Req C2 > Required information (The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. d. If the sales price drops to $80 per unit, what level of sales is required to earn the desired profit? Express your answer in units ar dollars. Prepare an income statement using the contribution margin format Complete this question by entering your answers in the tabs below. Reg D1 Reg D2 If the sales price drops to $80 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. (Do not round Intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Sales volume in units Sales volume in dollars & Reg Di Reg D2 > O Required information (The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. e. If fixed costs drop to $288,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. Reg Ei Reg E2 If fixed costs drop to $288,000, what level of sales is required to earn the desired profit? Express your answer in units and dollars. (Do not round Intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Sales volume in units Sales volume in dollars Reg E1 Req E2 > ! Required information (The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268,000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 sales price introduced in Requirement d applies to the subsequent requirements. f. If variable cost rises to $30 per unit, what level of sales is required to earn the desired profit? Express your answer in units and dollars. Prepare an income statement using the contribution margin format. Complete this question by entering your answers in the tabs below. nes Req F1 Reg F2 If variable cost rises to $30 per unit, what level of sales is required to earn the desired profit? (Do not round intermediate calculations. Round your final answers to the nearest dollar and round units up to the next whole unit.) Sales volume in units Sales volume in dollars Reg ReqF2 > 0 Required information [The following information applies to the questions displayed below.) Campbell Company makes and sells products with variable costs of $24 each. Campbell incurs annual fixed costs of $340,360. The current sales price is $91. Note: The requirements of this question are interdependent. For example, the $268.000 desired profit introduced in Requirement c also applies to subsequent requirements. Likewise, the $80 soles price introduced in Requirement d applies to the subsequent requirements. 9. Assume that Campbell concludes that it can sell 10,800 units of product for $80 each. Recall that variable costs are $30 each and fixed costs are $288,000. Compute the margin of safety in units and dollars and as a percentage (Do not round intermediate calculations. Round your answers to the nearest whole number. Round your percentage answer to nearest whole percentage For example, 0.1234 should be entered as 12%) Margin of safety in units Margin of safety in dollars Margin of safety %