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question 1. question 2. question 3. The KCS Company manufactures and sells Handmade handbags to assorted prints. Data for the previous year were as follows:
question 1.
question 2.
question 3.
The KCS Company manufactures and sells Handmade handbags to assorted prints. Data for the previous year were as follows: 8 2 Selling price Variable cost per piece No. of pieces to breakeven Net income last year 25,000 5,850 For the coming year, the company estimates that the selling price will be $9.50 per piece, variable cost to manufacture will increase by 25%, and fixed costs will increase by 10%. Income tax rate of 35% will not change. If sales for the coming year expected to exceed last year's by 1,800 pieces, the expected sales volume for the coming year would be (Units) Pony sells product A, B, and C. Pony sells three units of A for each unit of C and two units of B for each unit of A. The contribution margins are $1.00 per unit of A, 1.50 per unit of B, and 83.00 per unit of C. Fixed cost are $600,000. The number of A would Pony sell at the breakeven point would be units? The following are Golder Company's unit costs of making and selling an item at a volume of 8,000 units per month (representing the company's cpacity): 4.00 5.00 Manufacturing: Direct materials Direct labor Variable overhead Fixed overhead Selling and administrative: Variable Fixed 2.00 8.00 2.50 5.00 Present sales amount is equal to 7,000 units per month. An order has been reeived from a customer in a foreign market for 900 units at a price of $20 per unit. The order would not affect regular sales. Fixed costs, both manufacturing and selling and administrative, are constant within the relevant range of up to 8,000 units per month. The variable selling and administrative costs would have to be incurred for this special order as well as all other sales. The company has 100 defective units left over from last year which will have to be sold as scrap at reduced prices The sale of these units would have no effect on the company's other sales. The cost figure that is relevant as a guide for setting a minimum price on the defective units would be per unit
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