Cost Ch 3 Project.

Cost Ch 3 Project. - Among (192,000-76,800) =1,15,200...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 3 Collaborative Problem 3-49 SAIKAT MITRA 1/ T.F.C= 96,000*49=4,704,000 76,800*29.50=2,265,600 Calculations Breakeven Point Peoria: Per Unit cost Peoria Moline Total Variable Cost= 72+14=$86 Total Fixed Cost= 30+19=$49 Contribution Margin= 150-86=$64 2/ Operating Income Total Units= 400*240=96,000units Peoria Moline 18.50*76,800 $1,420,800 Add: (18.50-8.00)*19,200 = 201,600 Moline: Per Unit Cost $1,622,400 Total Variable Cost= 88+14=$102 Total Fixed Cost/unit = 15+14.50=$29.50 Contribution Margin = 150-102=$48 192,000 units, First 76,800 Units should be allocated to Moline. Total Units= 320*240=76,800 Units
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Among (192,000-76,800) =1,15,200 remaining units should be allocated to Peoria because Peoria's cost for both first 96,000 units and any additional upto 120,000 units is more profitable than Moline *Peoria's Operating Income after regular capacity is (15-3)=$12per unit *Moline's O.I. after regular capacity is (18.50-8.00)=$10.00per unit 4,704,000/64= 73,500 Units 2,265,600/48= 47,200 Units 15*96,000 = $1,440,000 3/ Moilne's first 76,800 Units are most profitable so among the So Moline gets 76,800 Units & Peoria gets 115,200 Units to produce...
View Full Document

This note was uploaded on 12/12/2011 for the course ACCT 123 taught by Professor Mahajibril during the Fall '11 term at Newman.

Ask a homework question - tutors are online