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Need help with Managerial Accounting Homework. Please show all work (calculations) so I can better understand the concepts. I need this by 7PM PST Firm.
Need help with Managerial Accounting Homework. Please show all work (calculations) so I can better understand the concepts. I need this by 7PM PST Firm. There are 5 questions.Please see attachment.
2) Exercise 3-13A evaluating simultaneous changes in fixed and variable costs LO 3-5 Belmont Company currently produces and sells 7,000 units annually of a product that has a variable cost of $19 per unit and annual fixed costs of $175,000. The company currently earns a $84,000 annual profit. Assume that Belmont has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $15 per unit. The investment would cause fixed costs to increase by $14,000 because of additional depreciation cost. Required: a. Use the equation method to determine the sales price per unit under existing conditions (current equipment is used). _____________________ b1. Prepare a contribution margin income statement, assuming that Belmont invests in the new production equipment. b- Recommend whether Belmont should invest in the new equipment. 2. Should invest in the new equipment Should not invest in the new equipment 3) Exercise 3-16A Multiple product break-even analysis LO 3-6 Tanaka Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Super Sal es price Var iable cost per unit Co ntrib utio n mar gin per unit $ 85 Supreme $ 125 (31) $ 54 (45) $ 80 Tanaka expects to incur annual fixed costs of $309,000. The relative sales mix of the products is 70 percent for Super and 30 percent for Supreme. Required: a. Determine the total number of products (units of Super and Supreme combined) Tanaka must sell to break even. (Do not round intermediate calculations.) __________________________ b. How many units each of Super and Supreme must Tanaka sell to break even? (Do not round intermediate calculations.) _______________________________ Products Super Units Products Supreme Units 4.) Problem 3-17A Determining the break-even point and preparing a contribution margin income statement LO 3-1 Lucent Manufacturing Company makes a product that it sells for $75 per unit. The company incurs variable manufacturing costs of $30 per unit. Variable selling expenses are $9 per unit, annual fixed manufacturing costs are $240,000, and fixed selling and administrative costs are $165,000 per year. Required: Determine the break-even point in units and dollars using each of the following approaches: a. Equation method. Break-Even Point in Units Break-Even point in Dollars b. Contribution margin per unit. Contribution Margin per Units Break-Even Point in Units Break-Even Point in Dollars c. Contribution margin ratio. Contribution Margin Ratio % Break-Even point in Dollars Break-Even point in units d. Prepare a contribution margin income statement for the break-even sales volume. Lucent Manufacturing Company Contribution Margin Income Stmt 5) Problem 3-22A Analyzing sales price and fixed cost using the equation method LO 3-5 Yilan Company is considering adding a new product. The cost accountant has provided the following data. Expected variable cost of manufacturing Expected annual fixed manufacturing costs per unit $ 50 $ 50,00 0 The administrative vice president has provided the following estimates. Expected sales commission Expected annual fixed administrative costs per unit $ 6 $ 46,00 0 The manager has decided that any new product must at least break even in the first year. Required: Use the equation method and consider each requirement separately. a. If the sales price is set at $72, how many units must Yilan sell to break even? Number of Units __________ b. Yilan estimates that sales will probably be 12,000 units. What sales price per unit will allow the company to break even? Sales price per Units ___________________ c .Yilan has decided to advertise the product heavily and has set the sales price at $79. If sales are 12,000 units, how much can the company spend on advertising and still break even? Advertising Cost _________________________ Problem 3-25A Determining the break-even point and margin of safety for a company with multiple products LO 3-6 Watt Company produces two products. Budgeted annual income statements for the two products are provided here: Power Lite Bud gete Per d Varia ble cost Bud P gete er d Budgeted Bud gete d Num Uni ber t Sales Budgeted Amount U Num ni ber t Amount Num ber 5 @9= $ 0 190 $ 3 @5= 0 190 (66,500) Contri 2 190 bution @4= margin 0 45,600 Fixed cost Net income 112,100 760 760 760 5 @$ 6 = 0 $ 3 @ 9= 0 (296,400) 1 @ 7= 0 129,200 (19,000) $ 26,600 425,600 (73,000) $ 56,200 950 950 950 Required: a. Based on budgeted sales, determine the relative sales mix between the two products. Relative % for Power Relative % for Lite % % b. Determine the weighted-average contribution margin per unit. __________________________________________ c. Calculate the break-even point in total number of units. Break Even Point in units: ___________________________ d. Determine the number of units of each product Watt must sell to break even. Required Sales for units Power Required Sales for units Lite e. Verify the break-even point by preparing an income statement for each product as well as an income statement for the combined products. POWER LITE TOTAL Sales Variable Costs f. Determine the margin of safety based on the combined sales of the two Contribution (Round your answer to 1 decimal place. (i.e., .234 should be products. Margin Fixed Cost Net Income (Loss) entered as 23.4)) Margin of Safety __________%Step by Step Solution
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