UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. bulbs will be used evenly throughout the year. The setup cost every time a product run is made isP800 and the cost to carry bulbs in inventory for the year is P4. UF objective is to produce the bulbs at the lowest cost possible. 19. Assuming that each production run will be for the same number of bulbs, h many production runs should UFC make? а. 10 b. 14 с. 16.
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: SOLUTION- CONTRIBUTION MARGIN PER UNIT = SALES PRICE PER UNIT - VARIABLE COST PER UNIT . BREAK…
Q: Your Company has the capacity to produce 80,000 units. It produces and sells 70,000 units of a…
A: Special pricing decision is required in the case of order received over and above the actual sales…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The question is related to Marginal Costing. The details are given. First we will calculate the…
Q: Wesley Utility Company uses 2,500 units per year which it stores at $0.50 per unit per annum. The…
A: EOQ = Economic order quantity (EOQ) is a calculation on which companies perform that represents…
Q: $ 8.00 Variable manufacturing overhead cost per unit $ 5.00 Variable sales…
A: Explorer Company…
Q: UFC Inc. manufacture 100,000 specialized bulbs for its transformer division. The bulbs will be used…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: reedom plc uses 180,000 units of material each year. The cost of placing an order is £200 and the…
A: Economic order quantity means the number of units to be ordered so that total cost of inventory will…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: ACE processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: Economic Order Quantity is an inventory management technique where it helps to order the required…
Q: atay-Buhay Corporation produces push-button switches used in the manufacture of electric fans. For…
A: Budget is a forecast or plan of the company which estimates the upcoming sales or cost.
Q: The Melrose Corporation produces a single product, Product C. Melrose has the capacity to produce…
A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in…
Q: G Corporation produces push-button switches used in the manufacture of electric fans. For the year…
A: The sales budget is a statement that shows the estimated sales in terms of both quantity and amount…
Q: 6. Cartman makes Supersized Cheezy-Poofs. Cartman determined the standards for each unit (bag) of…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The question is related to the Marginal Costing. The details are given.
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: Lets start with basic understanding. Contribution is a sales less variable cost. In other words it…
Q: Lakeland Company produces and purchases 20,000 units each year at a cost of $80 per unit. Lakeland…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: b) Indirect Labor: High Low Method: Units Indirect labor High 6000 50000 Low 4000 40000…
Q: G Corporation produces push-button switches used in the manufacture of electric fans. For the year…
A: Sales budget is prepared by the management of the company to forecast the sales for the upcoming…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: g) Impact on contribution margin per unit & break-even point if i) Sales volume increases:…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The answer are as follows . Please find the answer in all below pages
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…
Q: Your Company has the capacity to produce 80,000 units. It produces and sells 70,000 units of a…
A: Variable cost means the cost which vary with the level of output and fixed cost means the cost which…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A:
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: Break-even Point=Fixed CostContribution margin per unit
Q: Jen Company manufactures 20,000 units of part S1 each year for use on its production line. The cost…
A: The make or buy decision is taken by analysing various factors such as cost of manufacturing the…
Q: Patriot Oman predicts that it will use 360,000 kgs of materials during the year. The material is…
A: EOQ stands for the appropriate level of order quantity to be acquired in order to save money on…
Q: Oster Company Ltd. manufactures dusk to dawn lamps. The following are the details of their operation…
A: In the context of the given question, we are required to compute the tradeoffs in costs involved in…
Q: Kren processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: At Economic Order Quantity the total cost is minimum. Formula: EOQ=2×Annual demand× cost per…
Q: WZY processing company uses 2,400 units of a product per year on a continuous basis. The product…
A: EOQ= 2×A×OCWhere,A=Annual demandO=Ordering costC= Carrying cost
Q: Dunne Limited manufactures a standard model of garden gate. The selling price of a gate is €150.…
A: Break even point shows the number of units which are required to sold so that the fixed cost gets…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: Note: As per our guidelines, only the first three subparts will be solved. a) Classification of…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: GIVEN Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: SOLUTION- WORKING NOTE- PARTICULARS LOWER LIMIT UPPER LIMIT DIFFERENCE VARIABLE COST PER UNIT…
Q: Achievable Company produces component A1 for use in one of its electronic gadgets. Normal annual…
A: Net advantage: It refers to the net advantage of choosing the better alternative by comparing the…
Q: You are required to prepare forecasted Income statement for 19B, if the prime cost is 60% of cost of…
A: Current Year Income Statement and Forecasted Income Statement is Given Below,
Q: Briefly explain the impact of each of the following scenarios on the contribution margin per unit…
A: The contribution margin is the gross profit per unit calculated by subtracting variable costing per…
Q: Explorer Company has an annual plant capacity of 3,000 units. Data concerning this product are given…
A: Amount Sales (500 units X $ 45 per unit) $ 22,500 Less: Relevant Costs Direct…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: Requirement d. Calculation of break-even point and margin of safety in units and sales dollars.…
Q: Jade Ltd. manufactures a product, which regularly sells for $67.75. This product has the following…
A: In case any special order for a particular customer is received for additional units, then there…
Q: On average, PT. ABH would order from PT. GDAM 1.000.000 kg Crude Palm Oil (CPO) every month to be…
A: Total Fixed ordering cost for the year = IDR 4000000 Total Carrying cost for the year =…
Q: ABC company uses 8,000 pens every year. For each pen, cach order cost is $30 and the annual holding…
A: The question is based on the concept of Economic Order Quantity. Economic order quantity or Optimal…
Q: For P1,000 per box, the Leo Products, Inc. produces and sells delicacies. Direct materials are P400…
A: Inventoriable cost per box using variable costing = Direct materials per box + direct manufacturing…
Q: Explorer Company has an annual plant capacity of 3,000 units. Data concerning this product are given…
A: Please find the answer to the above question below:
Q: d) Assuming sales of 5,000 units, calculate Buggs-Off break-even point and margin of safety in units…
A: Breakeven Point Sales Units= Fixed Cost / Contribution Margin Per Unit Margin of Safety Sales =…
Q: Buggs-Off Corporation produces and sells a line of mosquito repellants that are sold usually all…
A: Direct material and direct labor comprises prime cost. Indirect materials and overhead labor…
Step by step
Solved in 2 steps
- ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…ABC Company manufactures the product XE-17. The product is sold at a unit price of $70.Variable expenses are $13.50 per unit and fixed expenses are $220,000 per year.Required :a. What should be the product’s CM ratio? b. Calculate the BEP is sales dollars and in units for ABC Company. c. The manager of ABC company estimates that in the coming year, the company’s sales willincrease by $80,000 (from the current sales). How much should the net profit / loss increase/decrease if the fixed costs remain constant? d. The manager of ABC company predicts that by spending an additional $80,000 per year onadvertising and using higher quality raw material (which will in turn increase the raw materialcost per unit by $3), and increasing selling price per unit by 2% (to compensate for theincreased costs), unit sales will increase by two- thirds of the current sales units. Should thecompany go with the manager’s proposed plan? Explain your answer. (Assume that in thecurrent year, the company sold…Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annua holding cost rate is OMR 0.30 per bag. What is the optimal total cycle time including the production time in year? a. 0.146 O b. None is correct O c. 0.208 d. 0.127 e. 0.137 O f. 0.108
- BBB Company has capacity to produce 150,000 units a year and sell it for $96 each. The costs of producing and selling 150,000 units are as follows (attached) Required 1. Suppose BBB is currently producing and selling 120,000 units. At this level of production and sales, its fixed costs are the same as given in the preceding table. WWW Company wants to place a onetime special order for 30,000 units at $75 each. Should BBB accept this one-time special order? Show your calculations. 2. Suppose BBB is currently producing and selling 150,000 units. (a) should BBB accept WWW offer one-time special order? Show your calculations. (b) at what price would BBB be indifferent between accepting the special order and continuing to sell to its regular customers at $96 per unit.Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Assume that demand is uniform throughout the year and known with certainty so there is no need for safety stocks. The purchase-order lead time is half a month. Calculate Sk8’s reorder point for the wheel bearing.A moped manufacturing company needs 100,000 units of moped tires for its production per year. The carrying costs of these tires are 10 per unit per year. Fixed ordering cost is 400. What is the optimal number of units should the company order each time in order to minimize total inventory cost? At this optimal quantity, how often should the company order its moped tires? Assume a 365-day year.
- Porter's Paints produces high-end industrial paint primer and sells the primer for $45 per gallon. The company's variable cost is $21.60 per gallon of primer. Annual fixed costs related to the primer are $197,145. Porter expects to sell 18,000 gallons of primer in 2021. What is 2021 expected profit?The Chimes Clock Company sells a particular clock for $40. The variable costs are $23 per clock and the breakeven point is 230 clocks. The company expects to sell 280 clocks this year. If the company actually sells 430 clocks, what effect would the sale of additional 150 clocks have on operating income? Explain your answer. The sale of an additional 150 clocks would operating income by the amount of The total effect would amount toSk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.
- Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing.Calculate Sk8’s annual relevant ordering costs for the EOQ .Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What is the optimal total cycle time including the production time in year?Sk8 Company produces skateboards and purchases 20,000 units of a wheel bearing each year at a cost of $1 per unit. Sk8 requires a 15% annual rate of return on investment. In addition, the relevant carrying cost (for insurance, materials handling, breakage, etc.) is $0.17 per unit per year. The relevant ordering cost per purchase order is $38.40. Q. Calculate Sk8’s EOQ for the wheel bearing Calculate Sk8’s annual relevant carrying costs for the EOQ