These problems/chapter questions are out of the book called "Managerial accounting: Creating value in a dynamic business environment (11th ed.)". New York, NY: McGraw Hill.

I have no experience in accounting and am struggling in this class. I will cut and paste the questions with the answers I came up with. These chapter questions are from the book and integrated with McGraw Hill connect. So once I hit submit, I can't change anything. With the math, it has to be perfect, and that I am not, Lol!

Problem #1

Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow.

Model no. 6754:

Variable costs, $18.00 per unit

Annual fixed costs, $986,300

Model no. 4399:

Variable costs, $11.80 per unit

Annual fixed costs, $1,114,000

Corrigan's selling price is $62 per unit for the universal gismo, which is subject to a 10 percent sales commission. (In the following requirements, ignore income taxes.)

Required:

1.How many units must the company sell to break even if Model 6754 is selected?(Do not round intermediate calculations and round your final answer up to nearest whole number.)

My answer: 26,093 Units

2-a.Calculate the net income of the two systems if sales and production are expected to average 47,000 units per year.

My answer for Model No. 6754:$790,300

My answer for Model No. 4399:$954,000

2-b.Which of the two systems would be more profitable?

My answer is Model No. 4399 should be more profitable

Problem #2

Corrigan Enterprises is studying the acquisition of two electrical component insertion systems for producing its sole product, the universal gismo. Data relevant to the systems follow.

Model no. 6754:

Variable costs, $18.00 per unit

Annual fixed costs, $986,300

Model no. 4399:

Variable costs, $11.80 per unit

Annual fixed costs, $1,114,000

Corrigan's selling price is $62 per unit for the universal gismo, which is subject to a 10 percent sales commission. (In the following requirements, ignore income taxes.)

3.Assume Model 4399 requires the purchase of additional equipment that is not reflected in the preceding figures. The equipment will cost $440,000 and will be depreciated over a five-year life by the straight-line method. How many units must Corrigan sell to earn $956,000 of income if Model 4399 is selected? As in requirement (2), sales and production are expected to average 47,000 units per year.(Do not round intermediate calculations and round your final answer up to nearest whole number.)

My answer for Required Sales = 49,045 units

4.ignoring the information presented in part (3), at what volume level will the annual total cost of each system be equal?(Do not round intermediate calculations and round your final answer up to nearest whole number.)

My answer for Volume Level = 20,597 units

Problem #3

CollegePak Company produced and sold 88,000 backpacks during the year just ended at an average price of $48 per unit. Variable manufacturing costs were $21.00 per unit, and variable marketing costs were $4.92 per unit sold. Fixed costs amounted to $558,000 for manufacturing and $230,400 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.)

Required:

1. Compute CollegePak's break-even point in sales dollars for the year.(Do not round intermediate calculations.Round your final answer up to the nearest whole dollar.)
2. Compute the number of sales units required to earn a net income of $630,000 during the year.(Do not round intermediate calculations. Round your final answer up to nearest whole number.)
3. CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firm's break-even point in sales dollars for the coming year.(Do not round intermediate calculations.Round your final answer up to the nearest whole dollar.)
4. If CollegePak's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

My answers 1-4 below:

Break-even point = $1,713,913

Number of sales = 35,707

Break-even point = $1,894,054

Selling price= $51.89

Problem #4

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 16,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 10,000 and 14,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models.

The following information was compiled by the accounting department.

Model

Mountaineering Touring

Selling price per unit $ 133.00 $121.00

Variable costs per unit 79.70 79.70

Fixed costs will total $558,400 if the mountaineering model is produced but will be only $478,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 30 percent income tax rate.

Required:

1.Compute the contribution-margin ratio for the touring model.(Round your final answer to 2 decimal places.)

My answer for Contribution-margin ratio = 0.34

Problem #5

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 16,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 10,000 and 14,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models.

The following information was compiled by the accounting department.

Model

Mountaineering Touring

Selling price per unit $ 133.00 $121.00

Variable costs per unit 79.70 79.70

Fixed costs will total $558,400 if the mountaineering model is produced but will be only $478,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 30 percent income tax rate.

2.If Alpine Thrills Ski Company desires an after-tax net income of $33,620, how many pairs of touring skis will the company have to sell?(Do not round intermediate calculations. Round your final answer to the nearest whole unit.)

My answer for Number of pairs to be sold:12,742 units

3.How much would the variable cost per unit of the touring model have to change before it had the same break-even point in units as the mountaineering model?(Round yourintermediate calculations and final answer to 2 decimal places.)

My answer (2 part) for The variable cost per unit would have decreasedby $4.34

Problem 6

Alpine Thrills Ski Company recently expanded its manufacturing capacity. The firm will now be able to produce up to 16,000 pairs of cross-country skis of either the mountaineering model or the touring model. The sales department assures management that it can sell between 10,000 and 14,000 units of either product this year. Because the models are very similar, the company will produce only one of the two models.

The following information was compiled by the accounting department.

Model

Mountaineering Touring

Selling price per unit $ 133.00 $121.00

Variable costs per unit 79.70 79.70

Fixed costs will total $558,400 if the mountaineering model is produced but will be only $478,200 if the touring model is produced. Alpine Thrills Ski Company is subject to a 30 percent income tax rate.

4.Suppose the variable cost per unit of touring skis decreases by 15 percent, and the total fixed cost of touring skis increases by 15 percent. Compute the new break-even point.(Do not round intermediate calculations. Round your final answer up to nearest whole unit.)

My answer for the New Break-even point:10,327 units

Problem #7

Disk City, Inc. is a retailer for digital video disks. The projected net income for the current year is $1,520,000 based on a sales volume of 210,000 video disks. Disk City has been selling the disks for $24 each. The variable costs consist of the $12 unit purchase price of the disks and a handling cost of $2 per disk. Disk City's annual fixed costs are $580,000.

Management is planning for the coming year, when it expects that the unit purchase price of the video disks will increase 30 percent. (Ignore income taxes.)

Required:

1. Calculate Disk City's break-even point for the current year in number of video disks.(Round your final answer up to nearest whole number.)
2. What will be the company's net income for the current year if there is a 15 percent increase in projected unit sales volume?
3. What volume of sales (in dollars) must Disk City achieve in the coming year to maintain the same net income as projected for the current year if the unit selling price remains at $24?(Do not round intermediate calculations. Round your final answer to the nearest whole number.)
4. In order to cover a 30 percent increase in the disk's purchase price for the coming year and still maintain the current contribution-margin ratio, what selling price per disk must Disk City establish for the coming year?(Do not round intermediate calculations. Round your final answer to 2 decimal places.)

My answers for 1-4 below:

Break-even point = 58,000 (units)

Net income= $1,835,000

Volume of sales= $5,040,001

Selling price per disk= $30.34

Thanks for your time and help in this matter. I also have this on a word doc if that would help.

V/r

James