Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 3: (14 marks) (B1, C1) Part A: 6 marks) Ahlia Corporation incurred the following costs while manufacturing its product. Materials used in product $

image text in transcribed
Question 3: (14 marks) (B1, C1) Part A: 6 marks) Ahlia Corporation incurred the following costs while manufacturing its product. Materials used in product $ 120,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 19,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used Salaries paid to salesclerks 23,000 50,000 Work-in-process inventory was $22,000 at January 1 and $15,500 at December 31. Instructions Compute cost of goods manufactured. a Part B: (8 marks) 1 Ahlia Co, has a unit selling price of $6.5, variable cost per unit $4.5, and fixed costs of $10,000 Instructions: 1. What is the breakeven revenue? (2 marks) 2. If budgeted sales are 8,500 units, what is the margin of safety in units? What is the margin of safety as a %? What does this mean? (4 marks) 3. What is the sales volume (in units) required to make a profit of $20,000? (2 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting Tools For Business Decision Making

Authors: Jerry J. Weygandt, Paul D. Kimmel, Ibrahim M. Aly, Donald E. Kieso

6th Canadian Edition

1119731828, 9781119731825

More Books

Students also viewed these Accounting questions