The market price for a product has been $50 per unit, but competitive pressures have reduced themarket price to $45. The firm manufactures 10,000 of these products per year at a manufacturingcost of $38 per unit (including $22 fixed cost and $16 variable cost per unit). Other selling andadministrative costs for the product are $8 per unit. What is the firm’s target manufacturing cost forthis product if the profit per unit is to remain unchanged?

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A: Given information is: Gelb Company currently manufactures 40,000 units per year of a key component…

Q: A company sells 4100 units of a product at 15 JOD per unit, which costs the company JOD 12 to…

A: Markup: The markup is the difference between the selling price of a product or service and the cost…

Q: Franklin Company, which produces and sells a small digital clock, bases its pricing strategy on a 35…

A: Contribution margin is computed by subtracting the variable cost of production from the sales price.

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Q: a) Prepare the incremental analysis for the decision to make or buy the finials. (b) Should Ralph…

A: Incremental Analysis Incremental analysis  compares true cost between available alternatives. This…

Q: Selling Price $ 40   Variable manufacturing cost $ 22   Fixed manufacturing cost $ 150,000 per month…

A: Break-even units are those number of units to be sold at which the total selling price is equals to…

Q: NUBD Co. has only 25,000 hours of machine time each month to manufacture its two products. Product X…

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Q: Daffy Duct, Inc., has the capacity to produce 12,000 cases of duct tape per year but only produces…

A: Answer = $5,000 (profit)   Computation of additional Operating Income / (Loss) accepting new offer…

Q: The Hammer Company has the following cost structure: fixed costs of Birr 70,000 per month and…

A: Contribution per unit= Sales- variable cost per unit Profit= (Sales per unit- variable cost per…

Q: Elkins, a manufacturer of ice makers, realizes a cost of $250 for every unit it pro- duces. Its…

A: The conceptual formula used:

Q: Gelb Company currently manufactures 40,000 units per year of a key component for its manufacturing…

A: The decision to manufacture or buy needs to be taken on the basis of impact of cost changes arising…

Q: The market price for a product has been $69 per unit, but competitive pressures have reduced the…

A: The question is based on the concept of Cost Accounting.

Q: Your Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: The difference analysis in the buy or making decision is impacted by cost incurred for both process.

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A: Marginal costing is an of costing technique and it is the variable cost of one unit of a product…

Q: The market price for a product has been $50 per unit, but competitive pressures have reduced the…

A: Manufacturing costs: Manufacturing costs are the costs which are involved in converting the raw…

Q: John's Company owns three production lines A, B, and C, and each production line achieves a…

A: Break Even Point Under Multiplicity of Product means the total quantity of units sold of each…

Q: Barnam Company currently produces and sells 6,000 units of a product that has a contribution margin…

A: Determine contribution margin per unit (After investment).

Q: Pacific Electronics manufactures and sells two types of lamps: floor lamps and desk lamps. Floor…

A: In This Numerical has covered the concept of Cost Volume Profit Analysis.

Q: Farrow Co. expects to sell 200,000 units of its product in the next period with the following…

A: Incremental cost is over and above current cost.  Overhead cost for additional units  $200000*16℅ =…

Q: Campbell Company, which produces and sells a small digital clock, bases its pricing strategy on a 20…

A: Differential analysis or incremental analysis is an accounting technique used by management. In…

Q: Green Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: A  make-or-buy choice is a demonstration of picking between assembling an item in-house or buying it…

Q: The Southern Division of Barstol Company makes and sells a single product, which is a part used in…

A: The lowest acceptable transfer price from the standpoint of the Southern Division should be closest…

Q: Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit…

A: Old variable expense per unit = $40 x 70% = $28

Q: Sage Company is operating at 90% of capacity and is currently purchasing a part used in its…

A: TOTAL UNITS :  = 30,000 UNITS    VARIABLE COST :  = $11 PER UNIT   PURCHASE COST :  = $15 PER UNIT…

Q: Lowwater Sailmakers manufactures sails for sailboats. The company has the capacity to produce 25,000…

A: Variable cost means the cost which vary with the level of output where as fixed cost remain fixed…

Q: Alice's company has a machine that can produce a maximum of 2722 components annually. She sells each…

A: a) Break even components=Fixed costs/Contribution margin per unit Fixed costs=$35,120 Contribution…

Q: Saturn Company produces 1,000 parts per year, which are used in the assembly of one of its products.…

A: PLEASE GIVE A LIKE YOUR RESPONSE MATTERS  THE CORRECT ANSWER IS OPTION (C) $2,000 decrease

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A: Sales at desired profit=Fixed cost+Desired profitSelling price-Variable cost per unit

Q: Rooney Company is considering adding a new product. The cost accountant has provided the following…

A: Break even point (BEP): Breakeven is the point where total expenses are equal to total revenue. at…

Q: Cotton Corp. currently makes 12,500 subcomponents a year in one of its factories. The unit costs to…

A: Formulas:

Q: Dull Corporation produces 8,000 parts each year, which are used in the production of one of its…

A: Give, Purchase price = $28 Fixed cost if purchased from outside = $20 - ($20*1/4) Fixed cost if…

Q: The Southern Division of Barstol Company makes and sells a single product, which is a part used in…

A: Contribution Margin per unit from outstand customer = selling price per unit -Variable cost per…

Q: If the objective of the firm is to get 25% profit, how many units does the firm need to sell if the…

A: Unit Contribution margin = Unit selling price x Contribution margin ratio

Q: A Production Company can produce a product for $80 per unit. The investment per unit in equipment is…

A: Following is the answer to the given question

Q: t it estimates will sell for $95 per unit. Annual demand is estimated to be 98,000 units. Sonora…

A: Target costing is a way of calculating a product's life-cycle cost, which should be sufficient to…

Q: Benson Corporation is a manufacturing company that makes small electric motors it sells for $40 per…

A: Formula: Break even units = Fixed cost / Unit contribution margin

Q: Bates Company currently produces and sells 16,000 units of a product that has a contribution margin…

A: Contribution means the difference between the selling price and variable cost . Fixed cost remain…

Q: Chile's, Inc. currently produces and sells 4,000 units of a product that has a contribution margin…

A: Break even point means a point where firm is neither earning profit nor incurring any loss. For…

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A: We first need to determine the profit in the two cases by considering the revenue and the total…

Q: The following are data from a production, calculate; a. The Break-even point in terms of sales value…

A: During the manufacturing and sale of goods and services, the determination of the break-even point…

Q: Blanchard Company manufactures a single product that sells for $180 per unit and whose total…

A: Income Statement is prepared under Matching Concept of accounting where all expenses are matched…

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A: Contribution margin per unit at Target Profit :-…

Q: Gilberto Company currently manufactures 66,000 units per year of one of its crucial parts. Variable…

A: Incremental cost: Incremental cost is the analysis of the costs in different avenues, which could be…

Q: Phelps Industries is a multi-product company that currently manufactures 30,000 units of part ST35…

A: Differential analysis helps manager to evaluate costs and revenue that can arise from taking up…