Description
This is an urgent task. Please complete all sections and questions on the Excel attached. Answers are to be on Excel sheet attached ONLY.
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Company A manufactures and sells one product for $14 per unit
Variable Costs per Unit
Manufacturing
Direct Materials
$
1.25
Direct Labor
0.50
Manufacturing Overhead
2.50 $
Selling and Administrative
Total
$
Fixed Costs per Month
Manufacturing Overhead
$ 2,000
Selling and Administrative
8,000
Total
$ 10,000
4.25
1.00
5.25
Required:
a) Determine the profit equation.
b) Use the equation to calculate profit if the volume is 6,200 units.
Company B sells its product for $40 per box. Each box contains 50 units. The company produced and sold 3,000 boxes this month.
Variable Costs per Box
Manufacturing
Direct Materials
$ 15.00
Direct Labor
3.00
Manufacturing Overhead
10.00 $
Selling and Administrative
Total
$
Fixed Costs per Month
Manufacturing Overhead
$ 15,000
Selling and Administrative
10,000
Total
$ 25,000
28.00
2.00
30.00
Required:
a) Prepare a contribution income statement for the month.
b) Determine the unit contribution margin and contribution margin ra
in and contribution margin ratio.
Company B sells its product for $40 per box. Each box contains 50 units. The company produced and sold 3,000 boxes this month.
Variable Costs per Box
Manufacturing
Direct Materials
$
15
Direct Labor
3
Manufacturing Overhead
10 $
Selling and Administrative
Total
$
Fixed Costs per Month
Manufacturing Overhead
$ 15,000
Selling and Administrative
10,000
Total
$ 25,000
28
2
30
Required:
a) Compute monthly break-even point in units
b) Compute monthly dollar sales required for a monthly profit of $5,000.
00 boxes this month.
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