MGAB03H3 Study Guide - Midterm Guide: Fixed Cost

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5 Jan 2011

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#14	Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the companyâs margin of safety?


#15	Roger Excavating Company experienced the following costs in 2016:
	Direct materials	$1.75 per unit
	Direct labor	$2.00 per unit
	Variable manufacturing overhead	$2.50 per unit
	Variable selling	$0.75 per unit
	Fixed manufacturing overhead	$50,000
	Fixed selling	$15,000
	Fixed administrative	$5,000
	During 2016, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the companyâs contribution margin per unit?

violetbuffalo160

Bath suppliers LTD is a manufacturer of standard fiberglassbathtubs with the following costs and selling price.
Selling Price $140 per unit
Variable Manufacturing costs $64 per unit
Fixed Manufacturing Costs $660,000 per year
Variable Selling Expenses $12 per unit
Fixed Selling Expenses $148,000

A) Determine the breakeven point in units and sales dollars.
B) Determine the number of units that must be sold to earn $109,120after tax of 38 percent.
C) If budgeted pre-tax operating income is $192,000 what is themargin of safety in units?
D) If pre-tax operating income is $192,000--1) What is the degreeof operating leverage? 2) What would be the dollar increase inprofit if sales icnreased by 10 percent?

tanweasel398

Kubin Companyâs relevant range of production is 21,000 to 25,000 units. When it produces and sells 23,000 units, its average costs per unit are as follows:

	Average Cost per Unit
Direct materials	$	8.10
Direct labor	$	5.10
Variable manufacturing overhead	$	2.60
Fixed manufacturing overhead	$	6.10
Fixed selling expense	$	4.60
Fixed administrative expense	$	3.60
Sales commissions	$	2.10
Variable administrative expense	$	1.60

Required:

1. Assume the cost object is units of production:

a. What is the total direct manufacturing cost incurred to make 23,000 units?

b. What is the total indirect manufacturing cost incurred to make 23,000 units?


1a.	Direct materials per unit
	Direct labor per unit
	Direct manufacturing cost per unit	$0.00
	Number of units sold
	Total direct manufacturing cost	$0

1b.	Variable manufacturing overhead per unit
	Fixed manufacturing overhead per unit
	Indirect manufacturing cost per unit	$0.00
	Number of units sold
	Total indirect manufacturing cost	$0

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MGAB03H3 Study Guide - Midterm Guide: Fixed Cost

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