Question

Units Manufactured       100                                 &nbs

Units Manufactured       100                                                      

  Direct Materials (in $'s):                                                               

Total Cost for Your Direct Material Number 1                    $24,441                                              

Total Cost for Your Direct Material Number 2                    $14,665                                              

Total Cost for Your Direct Material Number 3                    $9,776                                

Total Direct Materials (in $'s)                                      $48,882                              

Direct Labor (in $'s)                                         $29,441                              

Variable Factory Overhead (in $'s)                                                                            

Total Cost for Your F/O Number 1                           $48,882                                              

Total Cost for Your F/O Number 2                           $34,441                                              

Total Factory Overhead (in $'s)                                   $83,323                              

Cost of Goods Manufactured                                      $161,646                           

(No Beg or End D/M or WIP Inventories)                                                                            

                                                                               

Sales Price Per Unit         $3,492                                                

Units Sold            100                                                        

Total Sales in $'s                               $349,200                                           

Fixed Cost                           $25,000                                              

                                                                               

WITH THE ABOVE DATA SOLVE THE FOLLOWING QUESTIONS REGARDING YOUR PRODUCT:                                                                          

1) What is your Product's Operating income?                                                                    

2) What is your Product's Contribution Margin per unit?                                                                               

3) What is your Product's Contribution Margin percent?                                                               

4) How Many Units Would Have to be Sold to break even?                                                                          

5) How Many Units Would Have to be Sold to Yield a Target Operating Income of $30,000?                           

6) USING YOUR OPERATING INCOME YOU CALCULATED IN NO. 1 ABOVE, What is your Product's Planned Net Income Assuming a Tax Rate of 30%?     

Show formulas/calculations please

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