Module+5000+VI.++Homework

VI. Module 5000 Homework MJH



Materials || Direct Labor || Variable Overhead || Fixed Factory Overhead || Variable Selling || Fixed Selling & Admin exp || Units ||  ||
 * **16-1** |||||| **Variable Cost, Contribution Margin, Contribution Margin Ratio** ||  ||   ||   ||   ||   ||   ||   ||   ||
 * ||  ||   || Price || Direct
 * ||  ||   || 15.00 || 6.00 || 1.25 || 0.75 || 32,000.00 || 1.00 || 10,000.00 || 8,000.00 ||   ||
 * ||  ||   ||   ||   ||   ||   ||   || 1.75 ||   ||   ||   ||
 * 1a || Variable Product Cost Per Unit ||  || 2 |||||| Income Statement || 3 || 1a |||||| Variable Product Cost Per Unit ||
 * || DM+DL+Variable Overhead ||  ||   || Sales || 120,000.00 ||   ||   ||   |||||| DM+DL+Variable Overhead ||
 * || 8.00 ||  ||   || Minus Variable Expenses || 72,000.00 ||   ||   ||   || 8.00 ||   ||   ||
 * ||  ||   ||   || Contribution || 48,000.00 ||   ||   ||   ||   ||   ||   ||
 * 1b || Total Variable Cost per Unit ||  ||   || Minus Fixed Expenses || 42,000.00 ||   ||   || 1b |||||| Total Variable Cost per Unit ||
 * || DM+DL+Variable Overhead+Vsell ||  ||   || Operating Income || 6,000.00 ||   ||   ||   |||||| DM+DL+Variable Overhead+Vsell ||
 * || 9.00 ||  ||   ||   ||   ||   ||   ||   || 9.75 ||   ||   ||
 * 1c || Contribution Margin Per Unit ||  ||   ||   ||   ||   ||   || 1c |||||| Contribution Margin Per Unit ||
 * || Price-Variable Cost per Unit ||  ||   ||   ||   ||   ||   ||   |||||| Price-Variable Cost per Unit ||
 * || 6.00 ||  ||   ||   ||   ||   ||   ||   || 5.25 ||   ||   ||
 * 1d || Contribution Margin Ratio ||  ||   ||   ||   ||   ||   || 1d |||| Contribution Margin Ratio ||   ||
 * || Price-Variable Cost per Unit/Price ||  ||   ||   ||   ||   ||   ||   |||||| Price-Variable Cost per Unit/Price ||
 * || 40% ||  ||   ||   ||   ||   ||   ||   || 35% ||   ||   ||
 * 1e || Total Fixed Expense ||  ||   ||   ||   ||   ||   || 1e |||| Total Fixed Expense ||   ||
 * || 42,000.00 ||  ||   ||   ||   ||   ||   ||   || 42,000.00 ||   ||   ||
 * 1e || Total Fixed Expense ||  ||   ||   ||   ||   ||   || 1e |||| Total Fixed Expense ||   ||
 * || 42,000.00 ||  ||   ||   ||   ||   ||   ||   || 42,000.00 ||   ||   ||
 * || 42,000.00 ||  ||   ||   ||   ||   ||   ||   || 42,000.00 ||   ||   ||

Materials || Direct Labor || Variable Overhead || Sales Commission || cost/ Price - Unit Variable Cost) || Total Fixed Overhead || Fixed Selling & Admin exp ||  ||   || achieve profit of $333,500? || Total Fixed Cost || Target Profit || Contribution Margin ||   || achieve profit of $314,650? ||   ||   ||   ||   ||
 * **16-2 Break-Even Units/Units For Target Profit** ||  ||   ||   ||
 * 1A || Sales Commission Per Units Sold || Sales Commission || Price ||  ||   ||
 * || Equals Sales Commision * Price || 0.06 || 300 ||  ||   ||
 * || 18 ||  ||   ||   ||   ||
 * 1B || Contribution Margin Per Unit |||||||| Unit Variable Cost ||
 * || Equals Price - Unit Variable Cost || Direct
 * || 145.00 || 75.00 || 50.00 || 12.00 || 18.00 ||
 * 2 || Break-Even Units = total fixed
 * 2 || Break-Even Units = total fixed
 * || 4200 || 500,000.00 || 109,000.00 ||  ||   ||
 * |||||| Income Statement ||  ||   ||
 * || Sales || 1,260,000.00 ||  ||   ||   ||
 * || Minus Variable Expenses || 651,000.00 ||  ||   ||   ||
 * || Contribution || 609,000.00 ||  ||   ||   ||
 * || Minus Fixed Expenses || 609,000.00 ||  ||   ||   ||
 * || Operating Income || 0.00 ||  ||   ||   ||
 * 3 || How Many Units must be sold to
 * 3 || How Many Units must be sold to
 * || Units for 333,500 = (Total Fixed || 609,000.00 || 333,500.00 || 145.00 ||  ||
 * |||| Cost + Tareget Profit)/Contribution ||  ||   ||   ||
 * || Margin ||  ||   ||   ||   ||
 * || 6500 ||  ||   ||   ||   ||
 * 4 |||||||| Decrease because the requirement is for less income than in #3 ||  ||
 * || How Many Units must be sold to
 * || How Many Units must be sold to
 * || Units for 314,650 = ||  || 314,650.00 ||   ||   ||
 * |||| Cost + Tareget Profit)/Contribution ||  ||   ||   ||
 * || Margin ||  ||   ||   ||   ||
 * || 6370 ||  ||   ||   ||   ||

Cost || Total Fixed Cost Given || even ||  ||   ||   ||   || Margin Ratio ||  ||   ||   ||   || Target Profit of $100,000 ||  || Target Profit ||   ||   ||
 * **16-3** |||| **Break Even Sales, Sales For a Target Profit** ||  ||   ||   ||
 * 1A || Contribution Margin Per Unit ||  || Price || Unit Variable
 * || Equals Price - Unit Variable Cost ||  || 75.00 || 60.00 || 321,000.00 ||
 * || 15.00 ||  ||   ||   ||   ||
 * 1B || Contribution Margin Ratio ||  ||   ||   ||   ||
 * || Contribution Margin/Price ||  ||   ||   ||   ||
 * || 20% ||  ||   ||   ||   ||
 * 2 || Sales Revenue needed to break-
 * 2 || Sales Revenue needed to break-
 * || total fixed cost/Contribution
 * || 1,605,000.00 ||  ||   ||   ||   ||
 * 3 || Sales Revenue Needed to achieve
 * 3 || Sales Revenue Needed to achieve
 * || (Total Fixed Cost + Target Profit)/ ||  || 100,000.00 ||   ||   ||
 * || Contribution Margin Ratio ||  ||   ||   ||   ||
 * || 2,105,000.00 ||  ||   ||   ||   ||
 * 4a || Target of $90,000 ||  ||   ||   ||   ||
 * || (Total Fixed Cost + Target Profit)/ ||  || 90,000.00 ||   ||   ||
 * || Contribution Margin Ratio ||  ||   ||   ||   ||
 * || 2,055,000.00 ||  ||   ||   ||   ||
 * 4b || The Amount would be less. ||  ||   ||   ||   ||
 * 4c |||||| Because the amount of sales revenue needed is less ||  ||   ||
 * 4d || 50,000.00 ||  ||   ||   ||   ||
 * 4d || 50,000.00 ||  ||   ||   ||   ||

Materials || Direct Labor || Variable Overhead || Fix Factory Overhead || Variable Selling Expense || Fixed Selling & Admin exp || Tax Rate || Price || After-Tax Income ||
 * **16-4** || **After-Tax Profit Targets** || Direct
 * 1 || Before Tax Profit Needed || 150.00 || 100.00 || 25.00 || 352,000.00 || 45.00 || 340,000.00 || 30% || 480.00 || 420,000.00 ||
 * || After-tax income/(1-Tax Rate) ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 600,000.00 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * 2 || # of Units to Yield Operating Inc. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || total fixed cost + target profit/ ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || Price - Unit Variable Cost) ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 1,292,000.00 |||||| total fixed cost + target profit ||  ||   ||   ||   ||   ||   ||
 * || 160.00 |||| Price - Unit Variable Cost ||  ||   ||   ||   ||   ||   ||   ||
 * || 8075 || Units ||  ||   ||   ||   ||   ||   ||   ||   ||
 * 4 || Before Tax Profit Needed ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || After-tax income/(1-Tax Rate) ||  ||   ||   ||   ||   ||   || 35% ||   ||   ||
 * || 646,153.85 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || # of Units to Yield Operating Inc. ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || total fixed cost + target profit/ ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || Price - Unit Variable Cost) ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 1,338,153.85 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 160.00 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * || 8363.461538 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||||| Units sold would have to be higher at the 35% tax rate/ ||  ||   ||   ||   ||   ||   ||   ||
 * || 8363.461538 ||  ||   ||   ||   ||   ||   ||   ||   ||   ||
 * |||||| Units sold would have to be higher at the 35% tax rate/ ||  ||   ||   ||   ||   ||   ||   ||