What is the margin of safety in units for each year

Assignment Help Accounting Basics

Reference no: EM131916935

Question: Instructions: You must be following the all instructions about the article and case study

Solutions to Problems: All questions within the problem section have been answered correctly.

Calculations for Solutions: All questions have calculation clearly showing how answers were calculated.

Article Section: An approved article is submitted by the due date.

Or a reply is made within given, timeframe given, if the original article is not approved.

Presentation: A 3 to 5-minute presentation is given regarding the approved article. And

The presentation includes a clear connection to curse content and the article selected.

The case study is for the company I choose which is 7 Eleven

Attached is the financial information needed from Midwest Manufacturing to answer the questions below. For full credit please attach your work showing the calculations asked below. The questions below must be turned in during class on April 12, 2018. Please see the attached rubric for scoring guidelines.

What is the (1) breakeven in units and (2) margin of safety in units for each year?

Breakeven Margin of Safety

1) 2014:

2) 2015:

3) 2016:

The company has calculated that 40% of the variable cost of goods sold are attributable to direct materials, and that 60% of the variable cost of goods sold are associated with direct labor.

4) What is the direct materials cost per item for 2016?

It is projected that the number of units sold for 2017 will increase by 5% from 2016. No change in inventory is scheduled for 2017:

5) What is the production budget for 2017?

It is expected that the cost of direct materials will increase by 3% from 2016 to 2017.

6) What is the direct materials budget for 2017?

7) What was the direct labor hours per unit for (rounded to the nearest .01):

a. 2015:

b. 2016:

It is budgeted that the direct labor hours per unit from 2016 will be the same for 2017. It is also budgeted that the direct labor rate for 2017 will increase by 2% from 2016.

8) What is the direct labor budget for 2017?

When drafting the budget for 2016 the standard hourly rate was set at $12.56 for direct labor.

9) What is the direct labor rate variance for 2016?

A new piece of manufacturing equipment is being considered for purchase. This machine is projected to reduce total cost of goods sold by 18% (based on 2016 actual results) and have a useful life of 5 years.

10) If the machine costs $2,500,000 should it be purchased? Explain.

The Article: I choose article that I want to present about it. the presentation should be no PPT and no more than 3 minutes to talk about.

The article is talk about the break even Point.

Article: Application of Break-Even Point Analysis Primjena Break-Even Point analize (By Rudolf Kampf, Peter Majercák , and Pavel Švagr)

Information related to above question is enclosed below:

Attachment:- ArticleReview2.rar

Reference no: EM131916935

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