Jaybird Company operates in a highly competitive market where the market price for its product is $145 unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Direct materials Direct labor $24 Overhead $45,000 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? O Fixed Costs (total) $51,000 $62,000 $70,500 $67,500 $60,500

Jaybird Company operates in a highly competitive market where the market price for its product is $145 unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows: Variable Costs per Unit Direct materials Direct labor $24 Overhead $45,000 25 General and administrative 18,000 Overhead 23 General and administrative 29 To achieve the target cost per unit, Jaybird must reduce total expenses by how much? O Fixed Costs (total) $51,000 $62,000 $70,500 $67,500 $60,500

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter12: Integer Linear Optimization_models

Section: Chapter Questions

Problem 6P: Hart Manufacturing makes three products. Each product requires manufacturing operations in three...

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Hart Manufacturing makes three products. Each product requires manufacturing operations in three departments: A, B, and C. The labor-hour requirements, by department, are as follows: During the next production period the labor-hours available are 450 in department A, 350 in department B, and 50 in department C. The profit contributions per unit are 25 for product 1, 28 for product 2, and 30 for product 3. a. Formulate a linear programming model for maximizing total profit contribution. b. Solve the linear program formulated in part (a). How much of each product should be produced, and what is the projected total profit contribution? c. After evaluating the solution obtained in part (b), one of the production supervisors noted that production setup costs had not been taken into account. She noted that setup costs are 400 for product 1, 550 for product 2, and 600 for product 3. If the solution developed in part (b) is to be used, what is the total profit contribution after taking into account the setup costs? d. Management realized that the optimal product mix, taking setup costs into account, might be different from the one recommended in part (b). Formulate a mixed-integer linear program that takes setup costs provided in part (c) into account. Management also stated that we should not consider making more than 175 units of product 1, 150 units of product 2, or 140 units of product 3. e. Solve the mixed-integer linear program formulated in part (d). How much of each product should be produced and what is the projected total profit contribution? Compare this profit contribution to that obtained in part (c).
Please assist in solving (not graded) Practive exercise Please provide details with formulas Business Decision Case. The following total cost data are for the Ralston manufacturing company which has a normal capacity per period of 400,000 units of product that sell for $18 each. For the foreseeable future, regular sales volume should continue at normal capacity of production. Direct Materials $1,720,00Direct Labor $ 1,120,000Variable Overhead 560,000Fixed Overheard (N1) 880,000Selling Expense (N2) 720,000Adminstrative Exp. Fixed 200,000------------------------------------ $5,200,000 ------------------------------------------------------------------ Notes1. Beyond nomral capacity, fixed overhead cost increase $30,,000 for each 20,000 units or fraction thereof until a maximum of 640,000 units is reached 2. Selling expense are at 10% sale commission. Ralston pays only one half o the regualr sales commission rates on any sale of 20,000 or more units.…
Please Solve this MCQs Pedregon Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.35 Direct labor $ 4.30 Variable manufacturing overhead $ 1.60 Fixed manufacturing overhead $ 26,000 Sales commissions $ 0.80 Variable administrative expense $ 0.90 Fixed selling and administrative expense $ 6000 If the selling price is $22.10 per unit, the contribution margin per unit sold is closest to: $4.85 $3.15 $10.45 $7.15
/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false McCallen Company expects to produce and sell 500 units in the next month. The data on costs are as follows: Per-unit costs: Selling price $8.00 Variable manufacturing costs 2.75 Variable selling costs 0.25 Total costs: Fixed manufacturing costs $1,000 Fixed selling costs 125 Required: A. What is the variable cost per unit? B. What is the contribution margin per unit? C. What is the variable cost ratio? Round your answer to one decimal place. % D. What is the contribution margin ratio? Round your answer to one decimal place.
Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000 selling price per unit 200 operating income 420000 the business is considering paying a commission to its sales team as part of the sales expansion effort, which should result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should result in a 15% increase in sales volume. Calculate the new break-even sales figure, 2) the newmargin of safety and 3) the new operating profit, to determine whether the new sales commission plan isindeed viable.
elearn.squ.edu.om/mod/qu ING SYSTEM (ACADEMIC) Time left 1:31:39 Mazoon Company has information on its revenue and costs is as follows: Selling price per unit $80; Variable costs per unit includes: Direct material $16, Direct manufacturing labor $8, Manufacturing overhead $8, and Selling costs $10; Annual fixed costs $96,000. What is the contribution margin percentage? O a. 70% O b. 52.5% O c. None of the given answers O d. 47.5% O e. 60% on Which of the following does not represent a cost-volume-profit analysis equation? O a. Profit = contribution margin - fixed expenses O b. Sales + fixed expenses - profit = contribution margin + sales Fir O c. Sales = total expenses + profit at of Od. Sales - fixed expenses - variable expenses = 0 O e. Contribution margin - fixed expenses - profit = 0 CLEAR MY CHOICE --T:TA TV-E/lo ENG O O 4) Ca ^ 144 144
question will save this response. uestion 1 Ron Williams Manufacturing began operations this year. The company can make up to 30,000 units operations: Sales price Units produced and sold S79 per uit 30,000 S21 per unit $24 per unit $135,000 Direct materials Direct labor Fixed manufacturing overhead costs Variable manufacturing overhead Fixed marketing and administrative costs Variable marketing and administrative S12 per unit S117,000 $5 per unit costs Required: Prepare an income statement for the company using absorption costing. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Paragraph 14px E E vA Arial 岛田区田E困

R company can produce 1,000 of finished goods units through following costs: Direct material Direct labor Variable overhead Fixed overhead The company can buy these 1,000 units from outside for $170,000. Fixed cost of $19,250 is avoidable if units are purchased from outside. If the company will produce the goods, then what will be the cost savings? Answer * O O A B с $82,000 $33,500 $27,000 $19,250 D
Spartans Inc. has the following Standard Cost Card: per unit per year Price $21.00 Direct Materials $6.00 Direct Labor $1.80 Var. MOH $0.80 Fixed MOH $36,000 Selling $2.00 Administrative $60,000 1. What is the contribution margin per unit? $8.60, $2.99, $7.59, $10.60, or $4.99 2. What is the contribution margin ratio? 0.3672, 0.6328, 0.7800, 0.2200, or 0.4415 3. Based on your answer from (b), how much of every $1.00 of sales represents variable costs? 4. If direct labor costs increase by $1.00, how will that affect the contribution margin?
Make-or-Buy Decision, Alternatives, Relevant Costs Each year, Giada Company produces 14,000 units of a component part used in tablet computers. An outside supplier has offered to supply the part for $1.16. The unit cost is: Direct materials $0.73 Direct labor 0.28 Variable overhead 0.07 Fixed overhead 2.00 Total unit cost $3.08 Required: 1. What are the alternatives for Giada Company? 2. Assume that none of the fixed cost is avoidable. List the relevant cost(s) of internal production. List the relevant cost(s) of external purchase. 3. Which alternative is more cost effective and by how much? by $fill in the blank 5 4. What if $21,960 of fixed overhead is rental of equipment used only in production of the component that can be avoided if the component is purchased? Which alternative is more cost effective and by how much? by $fill in the blank 7
Please solve this MCQs Dake Corporation's relevant range of activity is 4900 units to 5500 units. When it produces and sells 5200 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 6.50 Direct labor $ 3.70 Variable manufacturing overhead $ 2.10 Fixed manufacturing overhead $ 3.00 Fixed selling expense $ 1.00 Fixed administrative expense $ 0.70 Sales commissions $ 0.80 Variable administrative expense $ 0.70 If 4200 units are produced, the total amount of indirect manufacturing cost incurred is closest to: $15,600 $8820 $21,420 $24,420
2TASK ONE: COST-VOLUME-PROFIT ANALYSISRantauBags Company plans to sell 10,000 handbags at $400 each in the comingyear. Data on cost per handbag are as follows:Direct materials $80Direct labour $125Variable overhead $15Variable selling expense is a commission of 5 per cent of the sales price. Total fixedfactory overhead amounts to $800,000. Fixed selling and administrative expensetotalled $400,000.Required:1) Prepare a contribution margin income statement for RantauBags for the comingyear.2) What is the effect on RantauBags operating income if 13,000 units aremanufactured and sold next year? Show computation.3) Calculate the number of units RantauBags must sell to breakeven.4) Calculate the number of units RantauBags must sell to achieve a targetoperating income of $240,000.5) Calculate the margin of safety in sales ($) for the coming year.6) Discuss TWO benefits of manager's possessing the knowledge/understanding oncost-volume-profit analysis.