ANS Unit selling price of sales mix 148 40 Unit variable cost of

Ans unit selling price of sales mix 148 40 unit

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ANS:Unit selling price of sales mix = $148 = ($180 .60) + ($100 .40)Unit variable cost of sales mix = $68 = ($80 .60) + ($50 .40)Unit contribution margin of sales mix = $80 = ($100 .60) + ($50 .40)Break-even sales (units) = 2,000 = $160,000 / $80DIF:ModerateOBJ:19(4)-05NAT:AACSB Analytic | IMA-Performance MeasurementTOP:Example Exercise 19(4)-511.The Zucker Company reports the following data.Sales$800,000Variable costs$500,000Fixed costs$250,000Determine Zucker Company’s operating leverage.ANS:6.0 = ($800,000 - $500,000) / ($800,000 - $500,000 - $250,000)DIF:EasyOBJ:19(4)-05NAT:AACSB Analytic | IMA-Performance MeasurementTOP:Example Exercise 19(4)-612.The Zucker Company reports the following data.Sales$600,000Variable costs$400,000Fixed costs$100,000Determine Zucker Company’s operating leverage.ANS:2.0 = ($600,000 - $400,000) / ($600,000 - $400,000 - $100,000)DIF:EasyOBJ:19(4)-05NAT:AACSB Analytic | IMA-Performance MeasurementTOP:Example Exercise 19(4)-613.The Nachez Company has sales of $500,000, and the break-even point in sales dollars of $300,000. Determine the company’s margin of safety.ANS:40% = ($500,000 - $300,000)/$500,000DIF:EasyOBJ:19(4)-05NAT:AACSB Analytic | IMA-Performance MeasurementTOP:Example Exercise 19(4)-7
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153 Chapter 19(4) /Cost Behavior and Cost-Volume-Profit Analysis14.The Sanchez Company has sales of sales of $300,000, and the break-even point in sales dollars if $210,000. Determine the company’s margin of safety.ANS:30% = ($300,000 - $210,000)/$300,000DIF:EasyOBJ:19(4)-05(a)Lubricants used to oil machinery.(b)Warehouse rent of $6,000 per month plus $.50 per square foot of storage used.(c)Thread.(d)Electricity costs of $.025 per kilowatt-hour.(e)Janitorial costs of $2,000 per month.(f)Advertising costs of $10,000 per month.(g)Sales salaries.(h)Color dyes for producing different colors of sweatshirts.(i)Salary of the production supervisor.(j)Straight-line depreciation on sewing machines.(k)Patterns for different designs. Patterns typically last many years before being replaced.(l)Hourly wages of sewing machine operators.(m)Property taxes on factory, building, and equipment.(n)Cotton and polyester cloth.(o)Maintenance costs with sewing machine company. The cost is $2,000 per year plus $.001 for each machine hour of use.ANS:(a)variable(i)fixed(b)mixed(j)fixed(c)variable(k)fixed(d)variable(l)variable(e)fixed(m)fixed(f)fixed(n)variable(g)fixed(o)mixed(h)variableNAT:AACSB Analytic | IMA-Performance MeasurementTOP:Example Exercise 19(4)-7PROBLEM1.The following is a list of various costs of producing sweatshirts. Classify each cost as either a variable, fixed, or mixed cost for units produced and sold.DIF:ModerateOBJ:19(4)-01NAT:AACSB Analytic | IMA-Performance Measurement
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Chapter 19(4) /Cost Behavior and Cost-Volume-Profit Analysis 154
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