subject
Business, 03.12.2019 21:31 sherlock19

Diego company manufactures one product that is sold for $80 per unit in two geographic regions"the east and west regions. the following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 units.

variable costs per unit:

manufacturing:

direct materials $24

direct labor $14

variable manufacturing overhead $2

variable selling and administrative $4

fixed costs per year:

fixed manufacturing overhead $800,000

fixed selling and administrative expenses $496,000

the company sold 25,000 units in the east region and 10,000 units in the west region. it determined that $250,000 of its fixed selling and administrative expenses is traceable to the west region, $150,000 is traceable to the east region, and the remaining $96,000 is a common fixed cost. the company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

1. what is the unit product cost under variable costing?

2. what is the unit product cost under absorption costing?

3. what is the company's total contribution margin under variable costing?

4. what is the company's net net operating income under variable costing?

5. what is the company's total gross margin under absorption costing?

6. what is the company's net operating income under absorption costing?

7. what is the amount of the difference between the variable costing and absorption costing net operating incomes? what is the cause of this difference?

8. what is the company's break-even point in unit sales? is it above or below the actual sales volume? compare the break-even sales volume to your answer for question 6 and comment.

9. if the sales volumes in the east and west regions had been reversed, what would be the company's overall break-even point in unit sales?

10. what would have been the company's variable costing net operating income if it had produced and sold 35,000 units? you do not need to perform any calculations to answer this question.

11. what would have been the company's absorption costing net operating income if it had produced and sold 35,000 units? you do not need to perform any calculations to answer this question.

12. if the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in year 2? why?

13. prepare a contribution format segmented income statement that includes a total column and columns for the east and west regions.

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 12:10
The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)
Answers: 1
question
Business, 22.06.2019 17:00
Oliver is the vice president of production at his company and has been managing the launch of new software systems. he worked with a team of individuals who were tasked to create awareness about a specific product and also to approach potential purchasers of the product. which department managers were part of oliver’s team?
Answers: 3
question
Business, 22.06.2019 19:30
Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. boats from as far away as california and japan braved the treacherous gulf of alaska crossing to reach the abundant king crab beds in cook inlet and bristol bay. suddenly, in the early 1980s, the fishery crashed due to over fishing. all crabbing in those areas ended. to this day, there is no crabbing in bristol bay or cook inlet. a. how would an economist explain the decline of the alaska king crab fishery
Answers: 3
question
Business, 22.06.2019 23:50
Mauro products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. the company’s monthly fixed expense is $4,200. required: 1. solve for the company’s break-even point in unit sales using the equation method. 2. solve for the company’s break-even point in dollar sales using the equation method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.) 3. solve for the company’s break-even point in unit sales using the formula method. 4. solve for the company’s break-even point in dollar sales using the formula method and the cm ratio. (do not round intermediate calculations. round "cm ratio percent" to nearest whole percent.)
Answers: 2
You know the right answer?
Diego company manufactures one product that is sold for $80 per unit in two geographic regions"the e...
Questions
question
Mathematics, 15.02.2021 16:10
question
English, 15.02.2021 16:10