Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration. Each unit of Product A costs $18 to produce and has a contribution margin of $9, while each unit of Product B costs $30 and has a contribution margin of $10. What is the differential revenue for this decision? Multiple Choice O O $21 $1 $13 $12
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- Choose the correct letter of answer Jan Slaugther Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the profit function in this case? a. C = 50x + 70,000b. Answer not givenc. P = 120x – 50x – 70,000d. R = 120xFlyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Their current full cost for the product is $44 per unit.In order to meet the new target cost, how much will the company have to cut costs per unit, if any? a.$1 b.$2 c.$3 d.$0Choose the correct letter of answer Bautista Company produces and sells a particular home appliance. The variable cost (VC) per unit is P50. The unit selling price (SP) is P120 while fixed cost (FC) is P70,000. What is the revenue function in this case? a. C = 50x + 70,000b. P = 120x – 50x – 70,000c. R = 120x d. none of the above
- what is the Revenue, cost and profit functions for the problem below? Orange Company buys Product A for P15 per units and sells them for P25 per unit. There areno other variable costs. Fixed cost is P6,000. Use the breakeven formula to determine thefollowing:a. Revenue, cost and profit functions.Exercise 21.12 (Static) Pricing a Special Order (LO21-1, LO21-2, LO21-3) Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows: Direct materials Direct labor Overhead (2/3 of which is variable) Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor. a-1. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit? a-2. What is your interpretation of the changes to the contribution margin per unit and the operating income on account of the unit price charged to the distributor? b-1. Assume that Mazeppa is currently operating at full capacity.…Flyer Company sells a product in a competitive marketplace. Market analysis indicates that its product would probably sell at $48 per unit. Flyer management desires a 12.5% profit margin on sales. Flyer's current full cost for the product is $44 per unit. In order to meet the new target cost, how much will the company have to cut costs per unit, if any? Oa. $1 Ob. $3 Oc. $0 Od. $2
- Concord Corporation plans to introduce a new product and is using the target cost approach. Projected sales revenue is $1740000 ($6.00 per unit) and target costs are $1537000. What is the desired profit per unit? CCoC Cla O $0.70 O $3.00 O $5.30 O None of the aboveHarris Company produces a product whose cost is $25. Assuming the company uses a cost-plus pricing system, what selling price would the company set to earn a profit margin of 20% of cost? Multiple Choice O O O O $27.50 $30 $125 $5Fixed cost = 10,000 Material cost per unit = 0.15 Labor cost per unit = 0.10 Revenue per unit = 0.65 Suppose Toys R Us sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Give a mathematical model for calculating profit and implement your model from part in Excel. If Toys R Us makes 12,000 units of the new product, what is the resulting profit? [KINDLY SHOW SOLUTION SINCE I WILL TYPE IT IN EXCEL. THANK YOU SO MUCH.]
- 1 Lazy Days Inc. (LDI), sells hammocks. Revenue and cost information is given below: Sales Price 3. TL 30 Unit Variable Cost 20 Annual Fixed Operating Expenses 47,500 Required: a) Determine the sales volume in units and TL amount that would be required to attain a TL 12,500 profit. Verify your answer by preparing an income statement using the contribution margin format. b) LDI is considering the implementation of a quality improvement program. The program will require a TL 2.50 increase in the variable cost per unit. To inform its customers of the quality improvements, the company plans to spend an additional TL 5,000 for advertising. Assuming that the improvement program will increase sales to a level that is 1,500 units above the amount computed in requirement a, should LDI proceed with plans to improve product quality? Support your answer by preparing a budgeted income statement. c) Determine the new break-even point volume of units and sales in TL as well as the margin of safety…Fixed cost = 10,000 Material cost per unit = 0.15 Labor cost per unit = 0.10 Revenue per unit = 0.65 Suppose Toys R Us sells all that it produces, profit is calculated by subtracting the fixed cost and total variable cost from total revenue. Give a mathematical model for calculating profit and implement your model from part in Excel. If Toys R Us makes 12,000 units of the new product, what is the resulting profit?Pierson Pet Products produces two models of dog beds: Basic and Custom. Price, cost and expected sales volume data for the two models are as follows: Selling price per bed Variable cost per bed Expected sales (beds) The total fixed costs for the company are $401,940. Basic $ 23.00 $ 16.00 60,000 Required: a. What is the anticipated level of profits for the expected sales volumes? b. Assuming that the expected product mix applies regardless of total sales, compute the break-even volume. c. If the product sales mix were to change to three Basic beds for each Custom bed, what would be the new break-even volume? Required A Complete this question by entering your answers in the tabs below. Custom $ 58.00 $ 37.00 40,000 Required B Profit Required C What is the anticipated level of profits for the expected sales volumes? Required A Required B