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nowiconhect.htm Some apps could r Saved Help Save & Ch Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit,

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nowiconhect.htm Some apps could r Saved Help Save & Ch Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit, and variable costs are $109 per unit Determine the break-even point in units units Break-even point es Prey 20' s lii Next > Help Save & En 3 Zhao Co. has fixed costs of $469,200. Its single product sells for $193 per unit, and variable costs are $125 per unit of sales in units needed to produce a target (pretax) income of $136,000 nts Print Prex 3 of 5 E Next Requirea intormation The following information applies to the questions displayed below.) This year Burchard Company sold 32,000 units of its only product for $18.60 per unit. Manufacturing and selling the product required $117,000 of fixed manufacturing costs and S177,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material 5 3.70 .70 0.37 Direct labor (paid on the basis of completed units) Variable selling and adninistrative eoats Next year the company vin use new material, which wil reduce material costs by 70% and direct labor costs by 30% and will not affect product quality or marketability. Management is considering an increase in the unit selling price to reduce the number of units sold because the factory's output is nearing its annual output capacity of 37000 units. Two plans are being considered. Under plan 1, the company will keep the selling price at the current level and seill the same volume as last year This plan will increase income because of the reduced costs from company will increase the selling price by 30% This plan wil using the new material Under plan 2, the unit sales volume by 15% under both plans , and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative costs will remain the Prex MacBook Air 3 1 Compute the break-even point in dollar sales for both (a) plan 1 and (b) plan 2. (Round "per unit answers" and "CM ratio percentage answer to 2 decimal places.) Variable Costs Direct labor Variable overhead costs Variable S&A cost otal variable costs n polnt in dolars MacBook Air 3 0 Required information Choose Denominator:Contribution margin ratio Contribution margin ratic Choose Numerator Choose Numerator Choose Denominator: 1 Break-even point in dollars Break-even point in dollars . Plan 2 Contribution margin ratio Break-even point in dollars MacBook A pilFS 2 3 4 4)Some apps c The following information applies to the questions displayed below This year Burchard Company sold 32,000 units of its only product for $18.60 per unit. Manufacturing and selling the product required $117,000 of fixed manufacturing costs and $177000 of fixed selling and administrative costs. its per unit variable costs follow. Direct labor (paid on the basis of conpleted units) Variable overhead costs Variable selling and administrative coats 3.70 2-70 0-37 Next year the company will use new material, which will reduce material costs by 70% and direct labor costs by 30% and will not affect product quality or marketability. Management is considering an increase in the unit selling price to reduce the number of units sold because the factorys output is nearing its annual output capacity of 37000 units. Two plans are being considered. Under pian 1, the company will keep the selling price at the current level and sell the same volume as last year. This plan will increase income because of the reduced costs from using the new material Under plan 2, the company will increase the seling price by 30%. This plan wil decrease unit sales volume by 15%. Under both plans ' and 2, the total fixed costs and the variable costs per unit for overhead and for selling and administrative cpsts will remain the 2. Prepare a forecasted contribution margin income statement with two columns showing the expected results of plan 1 and plan 2 The statements should report sales, total variable costs, contribution margin, total fined costs. ncome before taxes, income taxes (35% ratel, and net income

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