Reference no: EM132799981
Questions -
Q1. Edelbert's Bake Shop is divided into three departments, Mixing, Baking and Icing. The Baking Division sells 80% of its output to Icing Division and the balance to outside customers who want to decorate the cake on their own. The selling price to outside customers is 80 per unit. Some data pertaining to the Baking Department's production are presented below.
Output 1,000
Materials 30,000
Labor 20,000
Overhead 10,000
Selling Expenses 5,000
Administrative expenses 5,000
Required: Compute the price that must be charged by the Baking Division to the Icing Division assuming: The Baking Division desires to generate profit of 20% on sales.
Q2. The "Dog Hut" hot dog stand expects the following operating results for next year:
Sales 280,000
Net operating income 21,000
CM ratio 70%
What is Dog Hut's break-even point next year in sales dollars?
Q3. A company produces a single product. Variable production costs are P12 per unit and variable selling and administrative expenses are P3 per unit. Fixed manufacturing overhead totals P36,000 and fixed selling and administration expenses total P40,000. Assuming a beginning inventory of zero, production of 4,000 units and sales of 3,600 units, the dollar value of the ending inventory under variable costing would be?