Reference no: EM132326961
Question
A. Xion Company sells Widgets at $6 a unit. In FY 2016, fixed costs are expected to be $200,000 and variable costs are estimated to increase from $3 per unit to $4 a unit. Xion wants to have a FY 2016 operating income of $40,000. Use this information to determine the number of units of Widgets that Bravo must sell in FY 2016 to meet this goal.
(Round any total dollar value to the nearest whole dollar & enter as whole dollars only. Round any unit dollar value to the nearest penny & enter with both dollar(s) & cents. Round any unit non-dollar decimal numbers to the next higher whole number and enter as a whole number.)
B. During FY 2016, Xion Company plans to sell Widgets for $5.00 a unit. Current variable costs are $3.00 a unit and fixed costs are expected to increase to a total of $100,000. Use this information to determine for FY 2016:
1. the number of units of Widgets for Bravo to breakeven
2. the total dollar value of sales that Bravo must achieve to breakeven
(Round any total dollar value to the nearest whole dollar & enter as whole dollars only. Round any unit dollar value to the nearest penny & enter with both dollar(s) & cents. Round any unit non-dollar decimal numbers to the next higher whole number and enter as a whole number.)
C. Xion Company has two service departments (Cafeteria Services & Maintenance Services). Xion has two production departments (Printing Department & Binding Department.) Cafeteria Services has costs of $140,000 and are allocated to production departments based on their number of employees. Employees are:
Cafeteria Services 2
Maintenance Services 2
Printing Department 4
Binding Department 8
Xion uses the direct method for service cost allocation. Use this information to determine for Xion Company the dollar amount of its Cafeteria costs that are to be absorbed by: . (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)
1. the Maintenance Service Department
2. the Printing Department
3. the Binding Department