Problem 1: During FY 2018, Adelphi Company reported sales of $400,000, a contribution margin of $7.00 per unit, fixed costs of $55,000, and net income of $35,000. Use this information to determine the number of units Adelphi sold during FY 2018.
Problem 2: Towson Company manufactures book cases, and each requires 34 board feet of lumber. Towson expects that 1,900 and 1,850 book cases will be built in June and July, respectively. Towson keeps lumber on hand at 30% of the next month's production needs. Use this information to determine number board feet of lumber that Towson Company should buy in June.
Problem 3: Annapolis Company has two service departments (Computer Operations & Maintenance Services). Annapolis has two production departments (Mixing Department & Packaging Department.) Annapolis uses a direct allocation method where service departments are allocated only to production departments. All allocations are based on total employees. Computer Operations has costs of $165,000 and Maintenance Services has costs of $165,000 before any allocations. What amount of Maintenance Services total cost is allocated to the Packaging Department? Employees are:
Computer Operations 2
Maintenance Services 4
Mixing Department 7
Packaging Department 4