Determining units needed to earn target operating income


Response to the following problem:

Werner company produces and sells banking pans to retailers for 2.75 per pan. the variable cost per pan is:

direct materials 0.37

direct labor 0.63

variable factory overhead 0.53

variable selling expense 0.12

fixed manufacturing costs total 111425 per year.

Administrative cost (all fixed) total 48350

Please show work

Part 1 Fixed manufacturing costs ,Fixed administrative costs, Total fixed costs Selling price per unit ,Variable costs per unit, Contribution margin per unit, Break-even units

Part 2 Variable costs per unit ,Variable manufacturing costs per unit

Part 3 Total fixed costs, Target operating income ,Contribution margin per unit, Units needed to earn target operating income

Part 4 Units needed to earn target profit Selling price per unit, Sales revenue needed to earn target operating income.

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Cost Accounting: Determining units needed to earn target operating income
Reference No:- TGS02081230

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