Reference no: EM133005205
QUESTION - Aussie Skateboards Ltd provides the data below relating to its single product for 2021:
Selling price per skateboard $180
Annual fixed manufacturing costs $620,400
Annual fixed non-manufacturing costs $260,000
Variable manufacturing costs per skateboard $100
Variable selling costs per skateboard $18
Annual sales volume expected in 2021: 18,000 skateboards
Required -
Calculate the breakeven point in units and sales dollars.
Prepare a contribution margin income statement for 2021, for 18,000 skateboards sold.
From the data provided by Aussie Skateboards Ltd for 2021, if the company decreases the price to $170 it is estimated the annual sales volume would increase to 20,000 skateboards per year. Should the company reduce the price? Why? (show all your calculations to justify your answer)
The production capacity of Aussie Skateboards Ltd is 24,000 skateboards per year. The company received an offer from Sport Supplies Ltd to purchase from Aussie Skateboards an additional 5,000 skateboards in 2021 at $110 per skateboard. Aussie Skateboards would not incur any selling costs for this order but it would have to hire a supervisor only for this special order at a cost of $30,000. Should Aussie Skateboards accept this order? Why? (show all your calculations to justify your answer)
What was the average price per set
: The law firm purchased sets of different printing paper last month: 8 sets of $4; 3 sets of $6; 7 sets of $9; and 15 sets of $6. What was the average price
|
How much is the balance of the share premium
: Pompadour Inc., purchased and retired 100,000 shares of its stock for P1,800,000.00; How much is the balance of the Share Premium and Retained Earnings
|
Determine net income
: Beginning of year: Total assets-$ 50,000 Total liabilities-$ 22,000. Determine net income (loss) for each of the following separate situations
|
What is the impact of specific dollar amount of dividend
: What is the impact of specific dollar amount of dividend on binomial tree? What is (are) disadvantage(s) of resulting tree. How do you get around this problem
|
Calculate the breakeven point in units and sales dollars
: Aussie Skateboards Ltd provides the data below relating to its single product for 2021: Calculate the breakeven point in units and sales dollars
|
What is the value of a two-year, risk-free bond
: What is the value of a 2-year, risk-free bond with a coupon rate of 5% (annual coupons) and a face amount of $100
|
What was your total rate of return on this investment
: You purchased a bond for $1,000. At the end of a year, the bond paid interest of $90. What was your total rate of return on this investment
|
At what amount is the building reported
: Percy Inc. acquired 80% of the outstanding stock of Sillson Company in a business combination. At what amount is the building reported
|
Compute the book value per share of the preferred shares
: Preferred Shares, $6.00, cumulative, 20000 shares authorized, 3000 shares issued 50000. Compute the book value per share of the preferred shares
|