Solution-Find how many units is the company expected to sell

Find how many units is the company expected to sell

Reference no: EM132628973

Question 1: Consider zagol manufacturing which is engaged in the manufacturing of product ABC. To produce one unit of the product the company incurs the following costs:

Direct material ______$5/kg

Direct labor_________$10/hour

Total Manufacturing overhead __________________$30000

The company produces a total of 10000 units per month. And the actual price the product is sold is around $24. Company XYZ offers to buy a total of 5000 units this month at the price of $ 17/unit. Would you accept the order if you are the manager? (assume 20% of the manufacturing overhead is variable cost).

Question 2: from question one above considering all the manufacturing costs are fixed calculate the Break even point both in unit and quantity using the contribution and equation approach. How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?

Reference no: EM132628973

Questions Cloud

How much income before income taxes would have reported : If Enigma Corporation had used variable costing in its first year of operations, how much income (loss) before income taxes would it have reported?

Explain the role of waivers with cms : Explain the role of waivers with CMS. How do these contribute to the development of State Medicaid Plans (SPA''s)?

What is cost of goods sold for enigma corporation : What is Cost of Goods Sold for Enigma Corporation's first year? Total variable period costs incurred 30,000. Total variable costs incurred 50,000

Composers from the Romantic Era : Choose three composers from the Romantic Era. Pretend they all had an opportunity to meet, perhaps at a party.

Find how many units is the company expected to sell : Find How many units is the company expected to sell to make a before tax target profit $400,000. Will the result be different if we consider 30% tax?

Public policy topics-Social Security : Your Final Paper is to be a comprehensive research study-Social Security. The scope and nature of the public policy problem.

Compute how many unit will to be sold to earn target profit : Compute How many unit will have to be sold to earn target profit? The management wants the company to earn a profit of at least $90000.

Would accept the order if are the manager and explain : Consider zagol manufacturing which is engaged in the manufacturing of product ABC. Would you accept the order if you are the manager?

Explain the risks and benefits to using hrt : In your original post, describe a patient who may benefit from HRT. Explain the risks and benefits to using HRT in the scenario you chose. Be sure to include.

User Account

All Pages

Find how many units is the company expected to sell

Reference no: EM132628973

Reference no: EM132628973

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT