Q1 ) The Grand Canyon Company has total fixed costs of $110,000. Its product sells for $25 per unit and variable costs amount to $15 per unit. The company projects an 18% increase in its sales price and a 5% increase in its variable costs. How many units must be sold to achieve this target income level of $80,000

Q2

Calculate the cost of goods sold for the period:

Answer

Beginning Direct Materials Ending Direct Materials Beginning Goods in Process Inventory Ending Goods in Process Inventory Beginning Finished Goods Inventory Ending Finished Goods Inventory Cost of Goods Manufactured for the period $30,000 $70,000 $40,000 $46,000 $72,000 $68,000 $246,000