Reference no: EM131574196
Part 1: For each of the six different costs (A, B, ..., F) given below, indicate whether it is a variable, fixed, or mixed cost with regard to machine hours. Use the high-low technique to estimate the variable cost per machine hour and the total fixed costs for each.
Cost
|
100 hours
|
125 hours
|
A
|
$1,000
|
$1,000
|
B
|
$4,000
|
$5,000
|
C
|
$14,000
|
$14,000
|
D
|
$9,000
|
$11,250
|
E
|
$10,000
|
$12,000
|
F
|
$5,000
|
$6,250
|
PART 2: If machine hours are constant per unit of finished product, which of the above costs (A, B, ..., F) would decrease on a cost per unit basis if the number of units made increased?
GIVEN: CVP Company manufactures and sells Product V. As part of the budgeting process, management made the following estimates for 2016 related to the production and sale of 10,000 units of Product V. CVP Company maintains near zero inventory levels at year-end so the total of all production costs approximates cost of goods sold. Product V sells for $100 per unit.
|
Estimated Fixed Costs
|
Estimated Variable Costs
|
Production Costs:
|
|
|
Direct Materials
|
|
$120,000
|
Direct Labor
|
|
$180,000
|
Factory Overhead
|
$95,000
|
$30,000
|
Selling & Administrative Costs:
|
|
|
Salaries & Commissions
|
$90,000
|
$40,800
|
Advertising
|
$60,000
|
|
Miscellaneous selling & administrative
|
$35,000
|
$19,200
|
|
$280,000
|
$390,000
|
REQUIRED: (Show supporting calculations.)
Part 1: Prepare an estimated product income statement for 2016 using the contribution margin format.
Part 2: Determine the expected contribution margin per unit and the contribution margin ratio.
Part 3: Determine the breakeven point in units and dollars.
Part 4: Determine the expected margin of safety in dollars, units, and as a percentage of sales.
Part 5: Determine the degree of operating leverage.
Part 6: Construct a cost-volume-profit graph for the range of 0 units to 10,000 units. Label the axes, line and breakeven point.
Define criminal justice practitioners generally do not adopt
: Why is it that criminal justice practitioners generally do not adopt and employ social science research in their organizations. Explain your answer in detail
|
How colorism affects membership within the hispanic
: Describe the variability within the larger "Latin American" group, as defined by the U.S. Census, including the racial differences.
|
Optimal temperature for enzyme function
: Design an experiment to determine the optimal temperature for enzyme function, complete with controls.
|
Research to determine what this enzyme is called
: Research to determine what this enzyme is called. What substrate does it act on? Where in the body does it become activated, and why?
|
Prepare an estimated product income statement
: Prepare an estimated product income statement for 2016 using the contribution margin format. Determine the breakeven point in units and dollars
|
Describe the types of abuse and neglect occurring
: Describe the types of abuse and neglect occurring in this case study
|
Identify the specific problem and suggest an single solution
: You should identify the specific problem and suggest an single, feasible solution to the problem. You should clearly state your thesis in the form of a claim.
|
List the steps of dna replication
: List the steps of DNA replication. using the following terms: nucleotides, helicase, DNA polymerase, semi-conservative, and proofreading.
|
Cultural value of asians toward education
: On many indicators of success, such as income and education, Asian-Americans, while a distinct minority, surpass Whites in America. Why is this?
|