Question

X Company sells one product. The following are the accountant's price and cost estimates for 2020:...

X Company sells one product. The following are the accountant's price and cost estimates for 2020:

Selling price $16.64
Direct materials 4.59
Direct labor [all variable] 1.83
Variable overhead 3.74
Variable selling and administration 2.20
Fixed overhead $14,500
Fixed selling and administration 11,400


Unit sales in 2019 were 5,000; unit sales in 2020 are expected to be 4,400.

The accountant is uncertain about her $4.59 direct materials estimate. What must direct materials be in 2020 in order for X Company to breakeven (rounded to two decimal places)?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

direct materials of $27,774 be in 2020 in order for X Company to breakeven

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
X Company sells one product. The following are the accountant's price and cost estimates for 2020:...
X Company sells one product. The following are the accountant's price and cost estimates for 2020: Selling price $16.33 Direct materials 4.87 Direct labor [all variable] 1.85 Variable overhead 3.87 Variable selling and administration 2.70 Fixed overhead $12,500 Fixed selling and administration 13,000 Unit sales in 2019 were 5,100; unit sales in 2020 are expected to be 5,600. The accountant is uncertain about her $3.87 variable overhead estimate. What must variable overhead be in 2020 in order for X Company...
X Company sells one product. The following are the accountant's price and cost estimates for 2020:...
X Company sells one product. The following are the accountant's price and cost estimates for 2020: Selling price $17.76 Direct materials 4.07 Direct labor [all variable] 2.54 Variable overhead 2.04 Variable selling and administration 1.70 Fixed overhead $12,400 Fixed selling and administration 10,700 Unit sales in 2019 were 5,400; unit sales in 2020 are expected to be 5,800. The accountant is uncertain about her $2.04 variable overhead estimate. What must variable overhead be in 2020 in order for X Company...
X Company sells one product. The following are the accountant's price and cost estimates for 2020:...
X Company sells one product. The following are the accountant's price and cost estimates for 2020: Selling Price 16.76 Direct Materials 4.51 Direct Labor (all varible) 2.56 Variable Overhead 3.81 Variable Selling and Administration 1.80 Fixed overhead 14700 Fixed Selling and Administration 12000 Unit sales in 2019 were 5,700; unit sales in 2020 are expected to be 5,300. The accountant is uncertain about her $2.56 direct labor estimate. What must direct labor be in 2020 in order for X Company...
In 2019, X Company had revenue of $198,400 and incurred the following costs: Direct materials $37,696...
In 2019, X Company had revenue of $198,400 and incurred the following costs: Direct materials $37,696 Direct labor 19,840 Variable overhead 43,648 Fixed overhead 18,600 Variable selling and administration 7,936 Fixed selling and administration 15,800 If revenue and cost relationships were not expected to change in 2020, what must revenue be in 2020 in order for X Company to earn $60,000?
X Company produces 67,700 units of its regular product each year and sells each one for...
X Company produces 67,700 units of its regular product each year and sells each one for $14.00. The following cost information is available: Total    Per-Unit     Direct materials $154,356 $2.28       Direct labor 123,891 1.83       Variable overhead 199,715 2.95       Fixed overhead 137,431 2.03       Variable selling 89,364 1.32       Fixed selling 68,377 1.01       Total $773,134 $11.42     A company has offered to buy 4,070 units for $13.71 each. Because the special order product is slightly different than the regular product, direct material costs will increase...
QUESTION 1 A company manufactures and sells a single product which has the following cost and...
QUESTION 1 A company manufactures and sells a single product which has the following cost and selling price structure: £/unit £/unit Selling price 120 Direct material 22 Direct labour 36 Variable overhead 14 Fixed overhead 12 84 Profit per unit 36 The fixed overhead absorption rate is based on the normal capacity of 2,000 units per month. Assume that the same amount is spent each month on fixed overheads. Budgeted sales for next month are 2,200 units. You are required...
In 2019, total revenue for X Company was $1,575,600. Total costs were as follows: Direct materials...
In 2019, total revenue for X Company was $1,575,600. Total costs were as follows: Direct materials $228,800   Direct labor [all variable] 301,600 Variable overhead 234,000 Fixed overhead 150,500 Variable selling and administration 208,000 Fixed selling and administration 191,500 If total revenue in 2020 is expected to be $1,465,308, what are expected profits in 2020?
Kevin company manufactures and sells one product. The following information pertains to the company's first year...
Kevin company manufactures and sells one product. The following information pertains to the company's first year of operations: Selling price per unit $100 Variable costs per unit:    Manufacturing: Direct materials $8 Direct labor $20 Variable manufacturing overhead $11 Variable selling and administrative expense $18 Fixed costs per year: Fixed manufacturing overhead $48,000    Selling and administrative expense $75,700 Production 6,000 units Sales 4,500 units Q.: What is net operating income under variable costing in the first year?
Ramort Company reports the following cost data for its single product. The company regularly sells 23,500...
Ramort Company reports the following cost data for its single product. The company regularly sells 23,500 units of its product at a price of $67.00 per unit. Direct materials $ 10.70 per unit Direct labor $ 12.70 per unit Overhead costs for the year Variable overhead $ 3.70 per unit Fixed overhead per year $ 72,900.00 Selling and administrative costs for the year Variable $ 2.70 per unit Fixed $ 65,900 Normal production level (in units) 23,500 units Compute gross...
X Company estimates the following for its only two products for 2020 - X and Y:...
X Company estimates the following for its only two products for 2020 - X and Y: X Y Unit sales 3,850 680 Selling price $11.50 $38.30 Variable cost $7.00 $26.20 Total fixed costs in 2020 are expected to be $19,800. What is the expected weighted average contribution margin per unit in 2020 (rounded to two decimal places)?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT