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XYZ Company is considering the manufacture of a new toy. Each toy would sell for $5 and would require $2.00 in variable costs. In addition, annual fixed costs associated with the project would total $84,000. Calculate: (a) the breakeven point in units, (b) the breakeven point in dollars, (c) the profit or loss if 34,000 toys were sold, (d) the margin of safety if 34,000 toys were budgeted to be sold (e) the number of toys that must be sold to earn a profit of $90,000, and (f) the profit if total revenue is $200,000.(g) What is the contribution margin ratio? (h) What is the breakeven point in dollars?
What financial factors should management suppose when deciding whether to sell a product at split off point or process it further
Assume that the quantity demanded at the price calculated in part a is only 600 units. Illustrate what are the full costs of the globe, and what is the price with a 25 percent markup?
We constantly seem to be pricing ourselves out of some markets and not charging enough in others. Our pricing policy is pretty simple: we mark up our full manufacturing cost by 50%. That means a computer that costs us $2,000 to manufacture will sell ..
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Since the revenue rate cannot be increased and costs will not be decreased if the repairs are made, can the cost of the repairs be capitalized? Why or why not?
The Claire Corporation sells only one product. The following is budgeted information for that product: How many units does Samantha need to sell to breakeven? How much revenue does Samantha need to generate to breakeven? How many units does Samantha ..
finding the changesnbsp of annual profits be increased or decreased..delta company produces a single product. the cost
phillips company bought 40 ownership in jones bag company on 1st january 2001 at underlying book value. in 2001 2002
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Evaluate what MACRS convention applies to machine and find weston's cost recovery for 2012 is $ and for 2013 is $ .
On August 1, 2016 Pereira Corporation has sold 1,600 Wiglows to Mendez Companyat $450 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $12 per unit. In 2016, Pereira incurred warranty costs of $9,200. Costs for 2017 w..
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