Reference no: EM133079953

Questions -

Q1. Jana Company., which has only one product, provided the following data for June:

Sales @ $74 per unit - $636,400

Variable Costs Per Unit Fixed Costs

Direct Materials - $12 Factory Overhead - $176,000

Direct Labor - 32 Selling and Administrative - 8,600

Factory Overhead - 2

Selling and Administrative - 6

There are 200 Units of inventory remaining at the end of June.

a. What is the contribution margin for the month under the variable costing approach?

b. What is the gross margin for the month under the absorption costing approach?

Q2. Jamina Corporation sells a product for $6 per unit. Fixed expenses total $37,500 per month and variable expenses are $2 per unit. How many units must be sold each month for Jamina to realize a profit before income taxes of 15% of sales?

Q3. Smile Company invested $31,250,000 in a cabinet-making business. It expects to earn a 25% return on its investment in equipment used in the manufacturing the cabinets. Its consultants estimate that 10,000 units of cabinets next year. Estimated costs per unit of cabinet at this level follows: Variable manufacturing costs = $1,562.50; Fixed selling and administrative costs = $625.00; Fixed manufacturing costs = $312.50. To accomplish the company objective, how much must be the price of one cabinet?