1. Meriden Company has a unit selling price of $570, variable costs per unit of $284, and fixed costs of $233,130.
Compute the break-even point in units using the mathematical equation.
2. For Turgo Company, variable costs are 63% of sales, and fixed costs are $184,500. Management's net income goal is $51,338.
Compute the required sales in dollars needed to achieve management's target net income of $51.338.
3. For KozyCompany, actual sales are $1,104,000 and break-even sales are $761,760.
Compute the margin of safety in dollars and the margin of safety ratio
4. Montana Company produces basketballs. It incurred the following costs during the year.
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Direct materials
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$14,330
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Direct labor
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$25,447
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Fixed manufacturing overhead
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$9,961
|
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Variable manufacturing overhead
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$31,715
|
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Selling costs
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$20,543
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What are the total product costs for the company under variable costing?
5. Polk Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2012, the company incurred the following costs.
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Variable Cost per Unit
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|
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Direct materials
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$8.18
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Direct labor
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$2.67
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Variable manufacturing overhead
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$6.27
|
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Variable selling and administrative expenses
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$4.25
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|
|
|
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Fixed Costs per Year
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|
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Fixed manufacturing overhead
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$255,819
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Fixed selling and administrative expenses
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$261,709
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Polk Company sells the fishing lures for $27.25. During 2012, the company sold 80,200 lures and produced 95,100 lures
a.) Assuming the company uses variable costing, calculate Polk's manufacturing cost per unit for 2012.