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Please help, Im just trying to double check my answers 1. To enable Homestop Corporation to estimate its cost for the first quarter, you have
Please help, Im just trying to double check my answers 1. To enable Homestop Corporation to estimate its cost for the first quarter, you have been asked to analyze the behavior of past total production costs. Homestop has provided you with the following data concerning total production costs and direct labor hours worked: Assume that Homestop wishes to produce 200 units in January, 150 units in February, and 300 units in March where each unit requires ten direct labor hours to produce. Required: Using the high-low method, estimate a cost function and the total production costs for the first quarter. 2. Day Company produces and sells three products: Alpha, Beta, and Gamma Their respective selling prices are $1,$2, and $3. Variable costs per unit are $0.50,$1.50, and $2.00. Total fixed costs amount to $60,000. For every unit of Alpha sold, three units of Beta and four units of Gamma are sold. a. What is the contribution margin per unit for each product? b. Determine the operating income, assuming that sales in units for the three products were 20,000,40,000, and 50,000 . c. Compute the breakeven point in units and dollars. d. Compute the number of units required to earn a before tax profit of $100,000. e. Compute the number of units required to eam an after-tax profit of $120,000 assuming a 25% tax rate. Fill in the missing numbers for Bearkat Corporation's production and sales data provided below: a. Compute the breakeven point in units and dollars. b. Compute the number of units and amount of dollars needed to earn a profit of $120,000 before taxes assuming a tax rate of 30%. c. Compute the number of units and amount of dollars needed to earn a profit of $210,000 after taxes assuming a tax rate of 30%. d. Compute a new breakeven point in units and dollars if the following changes occurred: Selling price decreased by one-tenth. Variable costs decreased by one-third. Fixed costs increased by one-third
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