Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following information to answer the following questions ( show your calculations ) : Grover Company has the following data for the production and

Use the following information to answer the following questions (show your calculations):
Grover Company has the following data for the production and sale of 2,300 units.
Sales price per unit
$950
per unit
Fixed costs:
Administrative salaries $529,000 per period
Manufacturing overhead $272,000 per period
Variable costs:
Marketing commission $65 per unit
Manufacturing overhead $95 per unit
Direct labor $115 per unit
Direct Materials ,$230 per unit
What is the total fixed cost for the period?
What is the fixed cost per unit?
What is total variable cost per unit?
What is total variable cost at the current level of production?
What is the conversion cost per unit?
What is the contribution margin per unit?
What is the contribution margin ratio?
What is total the contribution margin at the current level of production?
What is the break-even point in units?
Calculate the net profit/loss at the break-even point sales.
What is the break- even point in value of sales (dollars)?
What is the net profit/ loss at sales level of 1,600 units?
What is the net profit/loss at sales level of 2,000 units?
What is the number of units to be produced and sold to make a profit of $44,500?
What is the value of sales to make a profit of $22,250?
What is the number of units to be sold to make a profit of $44,500, if the tax rate 20
%?
If the marketing commissions can be replaced by fixed salaries of $91,500, what is the
new break- even point in number of units?
If the marketing commissions can be replaced by fixed salaries of $91,500, what is the
new break- even point in value of sales (dollars)?
Would you accept or reject the decision in question number "11"? Why?
If the selling price is reduced by 10%, the sales volume will increase from the current
level of 2,300 units to 2,800 units, do you accept or reject the decision? Why?Use the following information to answer the following questions (show your calculations):
Grover Company has the following data for the production and sale of 2,300 units.
Sales price per unit
$950
per unit
Fixed costs:
Administrative salaries $529,000 per period
Manufacturing overhead $272,000 per period
Variable costs:
Marketing commission $65 per unit
Manufacturing overhead $95 per unit
Direct labor $115 per unit
Direct Materials ,$230 per unit
What is the total fixed cost for the period?
What is the fixed cost per unit?
What is total variable cost per unit?
What is total variable cost at the current level of production?
What is the conversion cost per unit?
What is the contribution margin per unit?
What is the contribution margin ratio?
What is total the contribution margin at the current level of production?
What is the break-even point in units?
Calculate the net profit/loss at the break-even point sales.
What is the break- even point in value of sales (dollars)?
What is the net profit/ loss at sales level of 1,600 units?
What is the net profit/loss at sales level of 2,000 units?
What is the number of units to be produced and sold to make a profit of $44,500?
What is the value of sales to make a profit of $22,250?
What is the number of units to be sold to make a profit of $44,500, if the tax rate 20
%?
If the marketing commissions can be replaced by fixed salaries of $91,500, what is the
new break- even point in number of units?
If the marketing commissions can be replaced by fixed salaries of $91,500, what is the
new break- even point in value of sales (dollars)?
Would you accept or reject the decision in question number "11"? Why?
If the selling price is reduced by 10%, the sales volume will increase from the current
level of 2,300 units to 2,800 units, do you accept or reject the decision? Why?
image text in transcribed

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

Essentials of Accounting for Governmental and Not-for-Profit Organizations

Authors: Paul A. Copley

10th Edition

007352705X, 978-0073527055

More Books

Students also viewed these Accounting questions