Reference no: EM132543195

Question 1: DDP Company sells only one product at a regular price of $7.50 per unit. Variable expence are 60% of sales and fixed expenses are $30,000. Management has to decided to decrease the selling price of $6.00 in hopes of increasing its volume of sales. What is the sales level required to breakeven at the old price of $7.50?

Question 2: ABC bath products ltd makes a variety of ceramic sinks and tubs. ABC has just developed a line of sinks and tubs made from a mixture of glass and ceramic. The sink is $150 each and have variable cost of $80. The tubs sell for $600 have variable cost of $450. The glass and ceramic sinks and tubs requires specilised molding equipment. The specilised mould equipment has 4,,050 hours of capacity per year. A sink uses an average of 2 hours of specilised molding equipment time; a tub uses an average of 1,000 sinks and tubs per year. How many tubs should ABC produce?

Question 3: A company manufactures TV sets. last month direct material (electronic components) costing $500,000 were put into production. Direct labour of $800,000 was incurred, overhead was $450,000 and selling and administration cost totaled $360,000. the company manufactures 8,000 TV sets during the mnth. Assume thre were no beginning or ending work in process balances. what was the amount of cost of goods manufactured last month?

Question 4: CCP Company manufactured 5,000 units during the month of March. they incurred a direct material cost of $100,000 and overhead cost of $40,000. If the per unit prime cost was $26.00 per unit, how much direct labour cost did they incur during March?