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Questions -
a. What should the company establish as the sales price per unit if it sets a target of earning an operating income of $700,000 by producing and selling 60,000 units during the first year of operations? (Hint: First compute the required contribution margin per unit.)
b. At the unit sales price computed in part a, how many units must the company produce and sell to break even? (Assume all units produced are sold.)
c. What will be the margin of safety (in dollars) if the company produces and sells 60,000 units at the sales price computed in part a?
d. Assume that the marketing manager thinks that the price of this product must be no higher than $60 to ensure market penetration. Will setting the sales price at $60 enable Ionic Charge to break even, given the plans to manufacture and sell 60,000 units?
Dedra Company uses the weighted-average method, What would be the cost per equivalent unit for conversion costs for the month?
Wheat Manufacturing, Calculate the full cost for the job if Wheat Manufacturing uses the direct labor hours as the basis to absorb overheads.
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BACT105 - Business Accounting - kent institute australia - topic or work on a topic provided by the lecturer, collect information (Primary and/or secondary)
Calculate Fixed overhead Efficiency Variance,Fixed overhead Expenditure Variance, Variable overhead Efficiency Variance, Variable overhead Expenditure Variance
Calculate Cost of goods sold under absorption costing. XYZ Co. sells its product for $60 per unit. During 2019, it produced 70,000 units and sold 60,000 units
Asaka Co. manufactures metal cans, What is statement of profit or loss for Asaka Co. for Year 1 using absorption costing and variable costing.
Calculate the contribution margin per unit using absorption costing. Calculate the contribution margin per unit using variable costing
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What The labor price variance is? Firm K produced 45,000 radios using 9,000 hours of labor in 2003; total labor costs were $54,000
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