1. The following is a list of various costs of producingT-shirts. Classify each cost as either a variable, fixed, or mixedcost for units produced and sold.
(a)
Leather used to make a handbag.
(b)
Warehouse rent of $8,000 per month plus $.50 per square foot ofstorage used.
(c)
Thread.
(d)
Electricity costs of $.038 per kilowatt-hour.
(e)
Janitorial costs of $4,000 per month.
(f)
Advertising costs of $12,000 per month.
(g)
Accounting salaries.
(h)
Color dyes for producing different colors of sweatshirts.
(i)
Salary of the production supervisor.
(j)
Straight-line depreciation on sewing machines.
(k)
Patterns for different designs. Patterns typically last manyyears before being replaced.
(l)
Hourly wages of sewing machine operators.
(m)
Property taxes on factory, building, and equipment.
(n)
Cotton and polyester cloth.
(o)
Maintenance costs with sewing machine company. The cost is$2,000 per year plus $.001 for each machine hour of use.
2. Copper Hills manufactures laser printers within a relevantrange of production of 70,000 to 100,000 printers per year. Thefollowing partially completed manufacturing cost schedule has beenprepared:
Number of Printers Produced
70,000
90,000
100,000
Total costs:
Total variable costs
$350,000
(d)
(j)
Total fixed costs
630,000
(e)
(k)
Total costs
$980,000
(f)
(l)
Cost per unit:
Variable cost per unit
(a)
(g)
(m)
Fixed cost per unit
(b)
(h)
(n)
Total cost per unit
(c)
(i)
(o)
Complete the preceding cost schedule, identifying each cost bythe appropriate letter (a) through (o).
3. For the current year ending April 30, Haley Company expectsfixed costs of $60,000, a unit variable cost of $70, andanticipated break-even of 1,715 sales units.
(a)
Compute the unit sales price.
(b)
Compute the sales (units) required to realize an operatingprofit of $8,000.
Round your answer to the nearest whole number.
4. Currently, the unit selling price is$50, the variable cost, $34, and the total fixed costs, $108,000. Aproposal is being evaluated to increase the selling price to$54.
(a)
Compute the current break-even sales (units).
(b)
Compute the anticipated break-even sales (units), assuming thatthe unit selling price is increased and all costs remainconstant.
5. For the coming year, Reve Companyestimates fixed costs at $109,000, the unit variable cost at $21,and the unit selling price at $85. Determine (a) the break-evenpoint in units of sales, (b) the unit sales required to realizeoperating income of $150,000 and (c) the probable operating incomeif sales total $500,000.
Round units to the nearest whole number and percentage to onedecimal place.
1. The following is a list of various costs of producingT-shirts. Classify each cost as either a variable, fixed, or mixedcost for units produced and sold.
(a) | Leather used to make a handbag. |
(b) | Warehouse rent of $8,000 per month plus $.50 per square foot ofstorage used. |
(c) | Thread. |
(d) | Electricity costs of $.038 per kilowatt-hour. |
(e) | Janitorial costs of $4,000 per month. |
(f) | Advertising costs of $12,000 per month. |
(g) | Accounting salaries. |
(h) | Color dyes for producing different colors of sweatshirts. |
(i) | Salary of the production supervisor. |
(j) | Straight-line depreciation on sewing machines. |
(k) | Patterns for different designs. Patterns typically last manyyears before being replaced. |
(l) | Hourly wages of sewing machine operators. |
(m) | Property taxes on factory, building, and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewing machine company. The cost is$2,000 per year plus $.001 for each machine hour of use. |
2. Copper Hills manufactures laser printers within a relevantrange of production of 70,000 to 100,000 printers per year. Thefollowing partially completed manufacturing cost schedule has beenprepared:
Number of Printers Produced | |||
70,000 | 90,000 | 100,000 | |
Total costs: | |||
Total variable costs | $350,000 | (d) | (j) |
Total fixed costs | 630,000 | (e) | (k) |
Total costs | $980,000 | (f) | (l) |
Cost per unit: | |||
Variable cost per unit | (a) | (g) | (m) |
Fixed cost per unit | (b) | (h) | (n) |
Total cost per unit | (c) | (i) | (o) |
Complete the preceding cost schedule, identifying each cost bythe appropriate letter (a) through (o).
3. For the current year ending April 30, Haley Company expectsfixed costs of $60,000, a unit variable cost of $70, andanticipated break-even of 1,715 sales units.
(a) | Compute the unit sales price. |
(b) | Compute the sales (units) required to realize an operatingprofit of $8,000. |
Round your answer to the nearest whole number.
4. Currently, the unit selling price is$50, the variable cost, $34, and the total fixed costs, $108,000. Aproposal is being evaluated to increase the selling price to$54.
(a) | Compute the current break-even sales (units). |
(b) | Compute the anticipated break-even sales (units), assuming thatthe unit selling price is increased and all costs remainconstant. |
5. For the coming year, Reve Companyestimates fixed costs at $109,000, the unit variable cost at $21,and the unit selling price at $85. Determine (a) the break-evenpoint in units of sales, (b) the unit sales required to realizeoperating income of $150,000 and (c) the probable operating incomeif sales total $500,000.
Round units to the nearest whole number and percentage to onedecimal place.
Related questions
1. The following is a listof various costs of producing T-shirts. Classify each cost aseither a variable, fixed, or mixed cost for units produced andsold.
(a) | Leather used to make a handbag. |
(b) | Warehouse rent of $8,000 per month plus $.50 per square foot ofstorage used. |
(c) | Thread. |
(d) | Electricity costs of $.038 per kilowatt-hour. |
(e) | Janitorial costs of $4,000 per month. |
(f) | Advertising costs of $12,000 per month. |
(g) | Accounting salaries. |
(h) | Color dyes for producing different colors of sweatshirts. |
(i) | Salary of the production supervisor. |
(j) | Straight-line depreciation on sewing machines. |
(k) | Patterns for different designs. Patterns typically last manyyears before being replaced. |
(l) | Hourly wages of sewing machine operators. |
(m) | Property taxes on factory, building, and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewing machine company. The cost is$2,000 per year plus $.001 for each machine hour of use. |
2. Copper Hillsmanufactures laser printers within a relevant range of productionof 70,000 to 100,000 printers per year. The following partiallycompleted manufacturing cost schedule has been prepared:
Number of Printers Produced | |||
70,000 | 90,000 | 100,000 | |
Total costs: | |||
Total variable costs | $350,000 | (d) | (j) |
Total fixed costs | 630,000 | (e) | (k) |
Total costs | $980,000 | (f) | (l) |
Cost per unit: | |||
Variable cost per unit | (a) | (g) | (m) |
Fixed cost per unit | (b) | (h) | (n) |
Total cost per unit | (c) | (i) | (o) |
Complete the preceding cost schedule, identifying each cost bythe appropriate letter (a) through (o).
3. For the current year ending April 30, HaleyCompany expects fixed costs of $60,000, a unit variable cost of$70, and anticipated break-even of 1,715 sales units.
(a) | Compute the unit sales price. |
(b) | Compute the sales (units) required to realize an operatingprofit of $8,000. |
Round your answer to the nearest whole number.
4. Currently, the unitselling price is $50, the variable cost, $34, and the total fixedcosts, $108,000. A proposal is being evaluated to increase theselling price to $54.
(a) | Compute the current break-even sales (units). |
(b) | Compute the anticipated break-even sales (units), assuming thatthe unit selling price is increased and all costs remainconstant. |
5. For the coming year,Reve Company estimates fixed costs at $109,000, the unit variablecost at $21, and the unit selling price at $85. Determine (a) thebreak-even point in units of sales, (b) the unit sales required torealize operating income of $150,000 and (c) the probable operatingincome if sales total $500,000.
Round units to the nearest whole number and percentage to onedecimal place.
Havingproblemswith this, if you could please do the problem so I cancompare withmy answers that would be great.
The followingis alist of various costs of producingsweatshirts. Classifyeach cost as either a variable,fixed, or mixed cost for unitsproduced and sold.
(a) | Lubricants used to oilmachinery. |
(b) | Warehouse rent of $6,000 permonthplus $.50 per square foot of storage used. |
(c) | Thread. |
(d) | Electricity costs of $.025perkilowatt-hour. |
(e) | Janitorial costs of $2,000permonth. |
(f) | Advertising costs of $10,000permonth. |
(g) | Sales salaries. |
(h) | Color dyes for producingdifferentcolors of sweatshirts. |
(i) | Salary of theproductionsupervisor. |
(j) | Straight-line depreciation onsewingmachines. |
(k) | Patterns fordifferentdesigns. Patterns typically last many yearsbefore beingreplaced. |
(l) | Hourly wages of sewingmachineoperators. |
(m) | Property taxes on factory,building,and equipment. |
(n) | Cotton and polyester cloth. |
(o) | Maintenance costs with sewingmachinecompany. The cost is $2,000 per year plus $.001for eachmachine hour of use. |
