Question
Question 1 (1 point) A firm has the capacity to produce 809,443 units of a product each year. At present, it is operating at 38
A firm has the capacity to produce 809,443 units of a product each year. At present, it is operating at 38 percent of capacity. The firm's annual revenue is $851,761. Annual fixed costs are $441,363 and the variable costs are $.54 cents per unit. The following equations will be useful.
Profit = Revenue - Costs |
Revenue = Price each * quantity |
Costs = Fixed Cost + Variable Costs |
Variable Costs = Fixed Cost + (cost each * quantity) |
At the break even point, Profit = 0 |
What is the firm's annual profit or loss?
Your Answer:Question 1 options:Answer |
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Question 2(1 point)
A firm has the capacity to produce 604,401 units of a product each year. At present, it is operating at 30 percent of capacity. The firm's annual revenue is $1,322,700. Annual fixed costs are $469,133 and the variable costs are $.73 cents per unit. The following equations will be useful.
Profit = Revenue - Costs |
Revenue = Price each * quantity |
Costs = Fixed Cost + Variable Costs |
Variable Costs = Fixed Cost + (cost each * quantity) |
At the break even point, Profit = 0 |
What is the price for each unit?
Your Answer:Question 2 options:Answer |
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Question 3(1 point)
A firm has the capacity to produce 675,294 units of a product each year. At present, it is operating at 59 percent of capacity. The firm's annual revenue is $523,236. Annual fixed costs are $418,463 and the variable costs are $.60 cents per unit. The following equations will be useful.
Profit = Revenue - Costs |
Revenue = Price each * quantity |
Costs = Fixed Cost + Variable Costs |
Variable Costs = Fixed Cost + (cost each * quantity) |
At the break even point, Profit = 0 |
At what volume of sales does the firm break even?
Your Answer:Question 3 options:Answer |
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Question 4(1 point)
The Janesky Company has collected data on the manufacture of 9,079 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month | 9,079 |
Direct materials | $103,633 |
Direct labor | $482,289 |
Manufacturing variable overhead | $455,393 |
Selling and administrative costs | $358,510 |
What was the total cost per unit?
Your Answer:Question 4 options:Answer |
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Question 5(1 point)
The Janesky Company has collected data on the manufacture of 7,688 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month | 7,688 |
Direct materials | $430,316 |
Direct labor | $185,420 |
Manufacturing variable overhead | $105,738 |
Selling and administrative costs | $350,154 |
What was the variable cost per unit?
Your Answer:Question 5 options:Answer |
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Question 6(1 point)
The Janesky Company has collected data on the manufacture of 2,637 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month | 2,637 |
Direct materials | $323,643 |
Direct labor | $238,047 |
Manufacturing variable overhead | $402,671 |
Selling and administrative costs | $466,147 |
Janesky is forecasting that 5,558 units will be produced and sold without any increase in fixed costs in the coming month. What would be the total cost based on last months cost data?
Your Answer:Question 6 options:Answer |
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Question 7(1 point)
The Janesky Company has collected data on the manufacture of 8,388 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month | 8,388 |
Direct materials | $272,615 |
Direct labor | $117,500 |
Manufacturing variable overhead | $447,354 |
Selling and administrative costs | $461,116 |
What would be the break even price to produce and sell 7,710 units in the coming month?
Your Answer:Question 7 options:Answer |
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Question 8(1 point)
The Janesky Company has collected data on the manufacture of 1,944 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
Units sold last month | 1,944 |
Direct materials | $343,836 |
Direct labor | $242,293 |
Manufacturing variable overhead | $483,202 |
Selling and administrative costs | $103,688 |
What is the break even quantity for a price of $405?
Your Answer:Question 8 options:Answer |
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Question 9(1 point)
Janesky Compamy has been asked by a customer to ship an additional 250 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house.
Units sold last month | 4,350 |
Direct materials | $201,636 |
Direct labor | $403,636 |
Manufacturing variable overhead | $411,296 |
Selling and administrative costs | $409,995 |
It the policy on such special orders is a markup (over cost) of 16%, what should you charge for the 250 units?
Your Answer:Question 9 options:Answer |
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Question 10(1 point)
Janesky Compamy has been asked by a customer to ship an additional 200 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house.
When quoting this new price, SG&A should be ignored?
Question 10 options:True |
False |
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