Tory Company sells a single product. Troy estimates demand and
costs at various activity levels as...
Tory Company sells a single product. Troy estimates demand and
costs at various activity levels as follows:
Units Sold
Price
Total Variable Costs
Fixed Costs
120,000
$48
$3,000,000
$1,000,000
154,500
$45
$3,500,000
$1,000,000
160,000
$40
$4,000,000
$1,000,000
180,000
$35
$4,500,000
$1,000,000
200,000
$30
$5,000,000
$1,000,000
How much profit will Troy have if a price of $45 is charged?
7.Cherokee Company sells a single product that has variable
costs of $10 per unit. Fixed costs...
7.Cherokee Company sells a single product that has variable
costs of $10 per unit. Fixed costs will be $700,000 across all
levels of sales shown.
Units
Sold
Price per Unit
80,000
$35
90,000
$33
100,000
$31
110,000
$30
120,000
$28
What price would Cherokee charge to maximize profit? Post full
calculation
Andretti Company has a single product called a Dak. The company
normally produces and sells 81,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 81,000 Daks each year at a selling
price of $48 per unit. The company’s unit costs at this level of
activity are given below:
Direct
materials
$
8.50
Direct labor
10.00
Variable
manufacturing overhead
2.40
Fixed manufacturing
overhead
9.00
($729,000 total)
Variable selling
expenses
3.70
Fixed selling
expenses
5.50
($445,500 total)
Total cost per
unit
$
39.10
Due to a strike in
its supplier’s plant,...
Andretti Company has a single product called a Dak. The company
normally produces and sells 120,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 120,000 Daks each year at a selling
price of $46 per unit. The company’s unit costs at this level of
activity are given below:
Direct materials
$
6.50
Direct labor
8.00
Variable manufacturing
overhead
3.80
Fixed manufacturing
overhead
4.00
($480,000 total)
Variable selling expenses
3.70
Fixed selling expenses
4.50
($540,000 total)
Total cost per unit
$
30.50
4. Due to a strike in its supplier’s...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000 Daks each year at a selling
price of $64 per unit. The company’s unit costs at this level of
activity are given below:
Direct materials
$
8.50
Direct labor
10.00
Variable manufacturing overhead
3.20
Fixed manufacturing overhead
7.00
($581,000 total)
Variable selling expenses
2.70
Fixed selling expenses
4.00
($332,000 total)
Total cost per unit
$
35.40
4. Due to a strike in its supplier’s...
Andretti Company has a single product called a Dak. The company
normally produces and sells 87,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 87,000 Daks each year at a selling
price of $62 per unit. The company’s unit costs at this level of
activity are given below:
Direct
materials
$
7.50
Direct
labor
9.00
Variable
manufacturing overhead
2.40
Fixed
manufacturing overhead
6.00
($522,000
total)
Variable selling
expenses
3.70
Fixed selling
expenses
3.00
($261,000
total)
Total cost per
unit
$
31.60
Due to a strike in its supplier’s plant,...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000 Daks each year at a selling
price of $58 per unit. The company’s unit costs at this level of
activity are given below:
Direct
materials
$
7.50
Direct
labor
9.00
Variable
manufacturing overhead
1.90
Fixed
manufacturing overhead
4.00
($332,000
total)
Variable selling
expenses
4.70
Fixed selling
expenses
4.00
($332,000
total)
Total cost per
unit
$
31.10
A number of questions relating to the production...
Pistachio Company has a single product called a Dak. The company
normally produces and sells 81,000...
Pistachio Company has a single product called a Dak. The company
normally produces and sells 81,000 Daks each year at a selling
price of $56 per unit. The company’s unit costs at this level of
activity are given below:
Direct
materials
$
7.50
Direct
labor
10.00
Variable
manufacturing overhead
2.50
Fixed
manufacturing overhead
10.00
($810,000
total)
Variable selling
expenses
2.70
Fixed selling
expenses
2.50
($202,500
total)
Total cost per
unit
$
35.20
Due to a strike in its supplier’s plant,...
Andretti
Company has a single product called a Dak. The company normally
produces and sells 88,000...
Andretti
Company has a single product called a Dak. The company normally
produces and sells 88,000 Daks each year at a selling price of $56
per unit. The company’s unit costs at this level of activity are
given below:
Direct materials
$
9.50
Direct labor
9.00
Variable manufacturing overhead
1.90
Fixed manufacturing overhead
6.00
($528,000 total)
Variable selling expenses
2.70
Fixed selling expenses
4.50
($396,000 total)
Total cost per unit
$
33.60
A
number of questions relating to the production...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000...
Andretti Company has a single product called a Dak. The company
normally produces and sells 83,000 Daks each year at a selling
price of $60 per unit. The company’s unit costs at this level of
activity are given below:
Direct materials $ 9.50
Direct labor 9.00
Variable manufacturing overhead 2.30
Fixed manufacturing overhead 9.00 ($747,000 total)
Variable selling expenses 2.70
Fixed selling expenses 3.50 ($290,500 total)
Total cost per unit $ 36.00
A number of questions relating to the production...