Basics of cost-volume-profit

Assignment Help Managerial Accounting
Reference no: EM1347403

Feather Friends, Inc., distributes the high-quality wooden birdhouse which sells for $20 for each unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.

Required:

Answer the following independent questions:

1. What is the product's CM ratio?

2. Use the CM ratio to determine the break-even point in sales dollars.

3. Due to an increase in demand, the company estimates that sales will increase by $75,000 during the next year. By how much should net operating income increase (or net loss decrease) assuming that fixed costs do not change?

Reference no: EM1347403

Questions Cloud

What is the energy necessary to remove the electron : A circular hole in an aluminum plate is 3.263 cm in diameter at 0.000°C. What is its diameter (in cm) as the temperature of the plate is raised to 129.8°C? Give the answer to four significant figures. The linear expansion coefficient of aluminum i..
Technical means to guarantee data confidentiality : Assess illustrate why technical means to guarantee data confidentiality depend upon trust.
Cost volume profit of procter and gamble company : Procter & Gamble Company is a Cincinnati-based company that produces household products under brand names such as Gillette, Bounty, Crest, Folgers, and Tide. The company's 2006 income statement showed the following (in millions):
Explain what has been happenning in this market : explain how lower coffee bean output in brazil, vietnam, columbia and central america are affecting this market. explain what has been happenning in this market.
Basics of cost-volume-profit : Feather Friends, Inc., distributes the high-quality wooden birdhouse which sells for $20 for each unit. Variable costs are $8 per unit, and fixed costs total $180,000 per year.
What is the utmost value of the electric field : A 100 kg cannon at rest contains a 10-kg cannon ball. When fired, cannon ball leaved the cannon with a speed of 450 m/s. What is the recoil speed of the cannon.
College special policies : Childrens in college are sometimes sold college special policies created for seniors. So, determine is it wise for college Childrens to buy life insurance while they are still in college?
Cvp analysis of detroit disk : Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Calculate Detroit Disk's break-even point for the current year in number of video di..
Illustrate what is the fed funds rate in the banking system : Illustrate what is the fed funds rate in the banking system. Explain how the Fed manipulates this rate in order to achieve macroeconomic objectives.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Cost volume profit analyses

After reviewing its cost structure (variable costs of £7.50 per unit and monthly fixed costs of £60,000) and its potential market, the Forecast Company established what it considered to be a reasonable selling price.

  Job costing-process costing differentiated

What are the major differences between job-order costing and process costing systems?

  About the merger and acquisition activity of the coca cola

Select one acquisition the company has undertaken during recent history and explain details of the deal. About the merger and acquisition activity of the Coca Cola

  Academic response to cvp analysis

Galaxy Disk's projected operating income for 2008 is $200,000, based on a sales volume of 200,000 units. Galaxy sells disks for $16 each. Variable costs consist of the $10 purchase price and a $2 shipping and handling cost. Galaxy's annual fixed c..

  Activity-based costing and management

Mattresses-A-Million produces Pillow-Top mattresses. They have been using a volume-based costing system to allocate overhead based on direct labor-hours. The Pillow-Top requires two hours of direct labor.

  Summarize the cost management from article

What are the major cost drivers involved in the school's educational process? How do you think the school might attempt to control costs? Describe how the Business School adds value and who receives this value.

  Create a memo on the state of the companys industry

Create a memo on the ‘state of the company's industry' and associated risk factors.

  Socially efficient level of public good

Explain verbally and graphically how the socially efficient amount of this good can be provided for them. Explain each term used in your answer.

  Relevant cost-job costing and process costing

What is the definition of the relevant cost and how would it execute to both job costing and process costing.

  Recognize types of responsibility centers

Recognize types of responsibility centers as a cost center, a profit center, a revenue center or an investment center.

  Prepare journal entries needed to reflect the activity

Do the pension worksheet and create the journal entries needed to reflect the above activity.

  Activity based costing-academic approach

What kind of organization or company would employ Activity-based costing? What are the limitations of Activity-based costing?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd