question 20-14

Palomus Controls currently produces and sells 20.00 regulators monthly. At this level, its variable cost per regulator is $26 and its fixed cost per regulator is $7. The company's monthly break-even point is 10,000 regulators. Determine the company's current selling price per regulator. Douglas Company has been asked submit a bid on supplying gas masks to the Pentagon. The company's current cost structure per mask is as follows: Assume that there would be no variable sales commission on this special order. Determine the lowest unit price that Douglas can bid without reducing its current level of operating income. Assume the company desires a 36 percent contribution margin ratio from this and that a special sales commission of 4 percent of the bid price will be applied instead its normal $6 variable sales commission. Determine the bid price per unit given these unique circumstances. Water World sells three products: ski vests, slalom skis, and ski ropes. Information related to each product line is provided below: The company's annual fixed costs are approximately $741,000. Compute total annual sales that the company must generate to break even. Compute total annual sales that the company must generate to break even. Compute total annual sales that the company must generate to earn operating income of $234,000. As Water World's marketing manager, what marketing strategy would you p to help the company maximize its profit potential? Dinklemyer Corporation uses direct labor hours as its single cost driver. Actual overhead costs and actual direct labor hours for e first five months of the current year are as follows: Compute the company's estimated variable manufacturing overhead cost per direct labor hour. Estimate the company's total monthly fixed manufacturing overhead cost. Estimate the company's total manufacturing overhead for June through August direct if 50,000 total direct labor hours are budgeted for that specific three-month period