Question

Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price...

Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 30 $/unit. The annual fixed cost of the plant is $2,000,000. Unit variable labor cost is 10 $/unit, unit variable material cost 5 $/unit, unit variable overhead cost 3 $/unit. a )How many units should be produced to start making profit (X)? b) How many units should be produced to make $1000,000 profit (Y)?

Business   Finance   
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
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price...
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 30 $/unit. The annual fixed cost of the plant is $2,000,000. Unit variable labor cost is 10 $/unit, unit variable material cost 5 $/unit, unit variable overhead cost 3 $/unit. a )How many units should be produced to start making profit (X)? b) How many units should be produced to make $1000,000 profit (Y)? Select one: a. X= 154545, Y=...
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price...
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 22 $/unit. The annual fixed cost of the plant is $1,700,000. Unit variable labor cost is 6 $/unit, unit variable material cost 4 $/unit, unit variable overhead cost 1 $/unit. a )How many units should be produced to start making profit (X)? b) How many units should be produced to make $1000,000 profit (Y)? Select one: a. X= 166667, Y=...
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price...
Assume that an investor has a manufacturing plant that produces automotive spare parts. The sale price of the part is 19 $/unit. The annual fixed cost of the plant is $1,600,000. Unit variable labor cost is 7 $/unit, unit variable material cost 3 $/unit, unit variable overhead cost 1 $/unit. a )How many units should be produced to start making profit (X)? b) How many units should be produced to make $1000,000 profit (Y)? Select one: a. X= 154545, Y=...
Austin Automotive sells an auto accessory for $180 per unit. The company’s variable cost per unit...
Austin Automotive sells an auto accessory for $180 per unit. The company’s variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $82,280, and fixed selling and administrative overhead is $55,528. Assume a tax rate for the company of 30 percent. If Austin Automotive wants to earn an after-tax profit of $7.20 on each unit sold, how many units must the company sell?
Ultease Corporation has many production plants across the midwestern United States. A newly opened plant, the...
Ultease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 24,000 units or 36,000 direct labor hours): Direct materials (2 pounds at $20) $ 40.00 Direct labor...
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the...
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows: Manufacturing costs (per unit based on expected activity of 27,000 units or 56,700 direct labor hours): Direct materials (3.4 pounds at $20) $ 68 Direct labor...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 2,900 Units sold 2,600 Units in ending inventory 300 Variable costs per unit: Direct materials $ 49 Direct labor $ 58 Variable manufacturing overhead $ 6 Variable selling and administrative expense $ 11 Fixed costs: Fixed manufacturing overhead $ 55,100 Fixed selling and administrative expense $ 18,200 What is the absorption costing unit...
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the...
Utease Corporation has many production plants across the midwestern United States. A newly opened plant, the Bellingham plant, produces and sells one product. The plant is treated, for responsibility accounting purposes, as a profit center. The unit standard costs for a production unit, with overhead applied based on direct labor hours, are as follows. Manufacturing costs (per unit based on expected activity of 23,000 units or 57,500 direct labor hours): Direct materials (3.0 pounds at $20) $ 60.00 Direct labor...
A manufacturing company that produces a single product has provided the following data concerning its most...
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Units in beginning inventory 0 Units produced 4,200 Units sold 4,100 Units in ending inventory 100 Variable costs per unit: Direct materials $ 45 Direct labor $ 47 Variable manufacturing overhead $ 10 Variable selling and administrative expense $ 8 Fixed costs: Fixed manufacturing overhead $ 88,200 Fixed selling and administrative expense $ 41,000 What is the variable costing unit...
The Jones Corporation uses standard costing in its manufacturing plant for auto parts. The standard cost...
The Jones Corporation uses standard costing in its manufacturing plant for auto parts. The standard cost of a particular auto​ part, based on a denominator level of 3,600 output units per​ year, included 5 ​machine-hours of variable manufacturing overhead at $ 7 per hour and 5 ​machine-hours of fixed manufacturing overhead at $ 15 per hour. Actual output produced was 4,100 units. Variable manufacturing overhead incurred was $235,000. Fixed manufacturing overhead incurred was $385,000. Actual​ machine-hours were 27,500. 1. Prepare...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT