Question

The Colin Division of Mochrie Company sells its product for $37 per unit. Variable costs per...

The Colin Division of Mochrie Company sells its product for $37 per unit. Variable costs per unit are: manufacturing, $15; and selling and administrative, $3. Fixed costs are: $320000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce 40000 units or 50000 units. What would the net income be under variable costing for each alternative? 40000 units 50000 units $390000 $390000 $390000 $454000 $390000 $464000 $454000 $390000

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
The Colin Division of Mochrie Company sells its product for $35 per unit. Variable costs per...
The Colin Division of Mochrie Company sells its product for $35 per unit. Variable costs per unit are: manufacturing, $15; and selling and administrative, $4. Fixed costs are: $280000 manufacturing overhead, and $50000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce...
The Colin Division of Mochrie Company sells its product for $40 per unit. Variable costs per...
The Colin Division of Mochrie Company sells its product for $40 per unit. Variable costs per unit are: manufacturing, $13.10; and selling and administrative, $2. Fixed costs are: $280000 manufacturing overhead, and $60000 selling and administrative. There was no beginning inventory. Expected sales for next year are 40000 units. Ryan Stiles, the manager of the Colin Division, is under pressure to improve the performance of the Division. As he plans for next year, he has to decide whether to produce...
Green Company sells its product for $10900 per unit. Variable costs per unit are: manufacturing, $6500;...
Green Company sells its product for $10900 per unit. Variable costs per unit are: manufacturing, $6500; and selling and administrative, $135. Fixed costs are: $50400 manufacturing overhead, and $60400 selling and administrative. There was no beginning inventory at 1/1/18. Production was 36 units per year in 2018–2020. Sales were 36 units in 2018, 32 units in 2019, and 40 units in 2020. Income under variable costing for 2020 is $48280. $54780. $54200. $59800.
Green Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5900;...
Green Company sells its product for $11000 per unit. Variable costs per unit are: manufacturing, $5900; and selling and administrative, $120. Fixed costs are: $31200 manufacturing overhead, and $41200 selling and administrative. There was no beginning inventory at 1/1/18. Production was 24 units per year in 2018–2020. Sales were 24 units in 2018, 20 units in 2019, and 28 units in 2020. Income under absorption costing for 2019 is?
Bramble Corp. sells its product for $90 per unit. During 2019, it produced 60000 units and...
Bramble Corp. sells its product for $90 per unit. During 2019, it produced 60000 units and sold 50000 units (there was no beginning inventory). Costs per unit are: direct materials $23, direct labor $12, and variable overhead $2. Fixed costs are: $720000 manufacturing overhead, and $90000 selling and administrative expenses. Cost of goods sold under absorption costing is $2430000. $2450000. $2400000. $1850000.
Variable and Absorption Costing: Chandler Company sells its product for $100 per unit. Variable manufacturing costs...
Variable and Absorption Costing: Chandler Company sells its product for $100 per unit. Variable manufacturing costs per unit are $40, and fixed manufacturing costs at the normal operating level of 12,000 units are $240,000. Variable selling expenses are $16 per unit sold. Fixed administrative expenses total $104,000. Chandler had no beginning inventory in 2016. During 2016, the company produced 12,000 units and sold 9,000. Would net income for Chandler Company in 2016 be higher if calculated using variable costing or...
FCO, Inc. manufactures a single product that it sells for $208 per unit. The company had...
FCO, Inc. manufactures a single product that it sells for $208 per unit. The company had the following cost structure thsi year: Variable Manufacturing Cost per unit: $50 Variable Selling and Administrative cost per unit: $21 Fixed Manufacturing Cost, Total: $1,599,000 Fixed Selling and Administrative Costs, Total: $934,000 There were no units in beginning inventory. During the year, 44,000 units were produced and 38,000 units were sold. Under absorption costing, the unit product cost is:
This year Burchard Company sold 29,000 units of its only product for $19.20 per unit. Manufacturing...
This year Burchard Company sold 29,000 units of its only product for $19.20 per unit. Manufacturing and selling the product required $114,000 of fixed manufacturing costs and $174,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material $ 3.40 Direct labor (paid on the basis of completed units) 2.40 Variable overhead costs 0.34 Variable selling and administrative costs 0.14 Next year the company will use new material, which will reduce material costs by 70% and direct...
Selling price per unit (package of 2 CDs)...................................... $27.00 Variable costs per unit: Direct material............................................................................................................... $5.50...
Selling price per unit (package of 2 CDs)...................................... $27.00 Variable costs per unit: Direct material............................................................................................................... $5.50 Direct labor...................................................................................................................... $6.00 Artist's royalties.............................................................................................................. $5.00 Manufacturing overhead.......................................................................................... $3.50 Selling expenses............................................................................................................ $2.50 Total variable costs per unit............................................................ $22.50 Annual fixed costs: Manufacturing overhead.......................................................................................... $192,000 Selling and administrative....................................................................................... $276,000 Total fixed costs................................................................................ $468,000 Forecasted annual sales volume (120,000 units)......................... $3,240,000 Management estimates that direct-labor costs will increase by 8% next year. How many units will the company have to sell next year to reach its...
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs...
Lucent Manufacturing Company makes a product that it sells for $67 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $13 per unit, annual fixed manufacturing costs are $186,000, and fixed selling and administrative costs are $362,800 per year. Contribution margin ratio % Break-even point in dollars Break-even point in units LUCENT MANUFACTURING COMPANY Contribution Margin Income Statement Sales Variable costs Contribution margin Fixed costs Net income
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT