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Managerial Accounting 1B Ch18

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Question;Managerial Accounting 1B;Financial;and Managerial Accounting;Chapter 18;1.Exercise 18-5 Predicting sales and variable costs using;contribution margin L.O. C2;Orlando Company management;predicts that it will incur fixed costs of $250,000 and earn pretax income of;$350,000 in the next period. Its expected contribution margin ratio is 60%.;Required;1.;Compute the amount of total dollar;sales.(Omit the "$" sign in your;response.);Total dollar sales;2.;Compute the amount of total;variable costs.(Omit the "$" sign;in your response.);Total variable costs;rev: 03-04-11;2.;Exercise 18-10 Contribution margin, break-even, and CVP chart;L.O. P2;Apollo Company manufactures a;single product that sells for $168 per unit and whose total variable costs;are $126 per unit. The company?s annual fixed costs are $630,000.;(a);Compute the company's contribution;margin.(Omit the "$" sign in your;response.);Contribution margin;(b);Compute the company's contribution;margin ratio.(Omit the "%" sign in;your response.);Contribution margin;ratio;(c);Compute the company's break-even;point in units.;Break-even point;(d);Compute the company's break-even point;in dollars of sales.(Omit the "$;sign in your response.);Break-even point;3.;Exercise 18-12 Income reporting and break-even analysis L.O. C2;Apollo Company manufactures a;single product that sells for $168 per unit and whose total variable costs;are $126 per unit. The company?s annual fixed costs are $630,000.;(1);Prepare a contribution margin;income statement for Apollo Company at the break-even point.(Leave no cells blank - be certain to enter "0";wherever required. Input all amounts as positive values. Omit the;$" sign in your response.);(2);Assume if the company?s fixed;costs increase by $135,000, what amount of sales (in dollars) is needed to;break even point?(Omit the "$;sign in your response.);Break-even;4.Exercise 18-13 Computing sales to achieve target income L.O. C2;Apollo Company manufactures a;single product that sells for $168 per unit and whose total variable costs;are $126 per unit. The company targets an annual after-tax income of $840,000.;The company is subject to a 20% income tax rate. Assume that fixed costs;remain at $630,000.;(1);Compute the unit sales to earn the;target after-tax net income.;Unit sales;(2);Compute the dollar sales to earn;the target after-tax net income.(Omit the;$" sign in your response.);Dollar sales;5.;Exercise 18-15 Predicting unit and dollar sales L.O. C2;Greenspan Company management;predicts $500,000 of variable costs, $800,000 of fixed costs, and a pretax;income of $100,000 in the next period. Management also predicts that the;contribution margin per unit will be $60.;(1);Compute the total expected dollar;sales for next period.(Omit the;$" sign in your response.);Total expected dollar;sales;(2);Compute the number of units;expected to be sold next period.;Expected unit sales;6.;Exercise 18-17 CVP analysis using composite units L.O. P4;Home Builders sells windows and;doors in the ratio of 8:2 (windows:doors). The selling price of each window;is $100 and of each door is $250. The variable cost of a window is $62.50 and;of a door is $175. Fixed costs are $450,000.;(1);Determine the selling price per;composite unit.(Omit the "$" sign;in your response.);Selling price per;composite unit;(2);Determine the variable costs per;composite unit.(Omit the "$" sign;in your response.);Variable costs per;composite unit;(3);Determine the break-even point in composite;units.;Break-even point;composite;units;(4);Determine the number of units of;each product that will be sold at the break-even point.;Unit sales of windows;at break-even point;Unit sales of doors at;break-even point;rev: 03-04-11;7.;Problem 18-1A Contribution margin income statement and;contribution margin ratio L.O. A1;The following costs result from;the production and sale of 4,000 drum sets manufactured by Vince Drum Company;for the year ended December 31, 2011. The drum sets sell for $250 each. The;company has a 25% income tax rate.;Required;1.;Prepare a contribution margin;income statement for the company.(Input all;amounts as positive values. Omit the "$" sign in your response.);2.1;Compute its contribution margin;per unit.(Input all amounts as positive;values. Omit the "$" sign in your response.);2.2;Compute its contribution margin;ratio.(Omit the "%" sign in your;response.);Contribution margin;ratio;8.;Problem 18-7A Break-even analysis with composite units L.O. P4;National Co. manufactures and;sells three products: red, white, and blue. Their unit sales prices are red;$55, white, $85, and blue, $110. The per unit variable costs to manufacture;and sell these products are red, $40, white, $60, and blue, $80. Their sales;mix is reflected in a ratio of 5:4:2 (red:white:blue). Annual fixed costs;shared by all three products are $150,000. One type of raw material has been;used to manufacture all three products. The company has developed a new;material of equal quality for less cost. The new material would reduce;variable costs per unit as follows: red, by $10, white, by $20, and blue, by;$10. However, the new material requires new equipment, which will increase;annual fixed costs by $20,000.;Required;1.;Assume if the company continues to;use the old material, determine its break-even point in both sales units and;sales dollars of each individual product.(Always;round your composite units up (ceiling rounding) to next whole unit. Then use;the Sales Units to calculate Sales Dollars. Omit the "$" sign in;your response.);Break-Even;Points;Sales;Units;Sales;Dollars;Red at break-even;White at break-even;Blue at break-even;2.;Assume if the company uses the new;material, determine its new break-even point in both sales units and sales;dollars of each individual product.(Always;round your composite units up (ceiling rounding) to next whole unit. Then use;the Sales Units to calculate Sales Dollars. Omit the "$" sign in;your response.);Break-Even;Points;Sales;Units;Sales;Dollars;Red at break-even;White at break-even;Blue at break-even

 

Paper#45497 | Written in 18-Jul-2015

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