Marketing homework help
QUESTION 1
Sunland Copy & Printing wants to predict copy machine repair expense at different levels of copying activity (number of copies made). The following data have been gathered:
Copy Machine | |||||||
Month | Repair Expense | Copies Made | |||||
May | $21,260 | 302,000 | |||||
June | 35,740 | 560,000 | |||||
July | 56,300 | 886,000 | |||||
August | 48,460 | 772,000 | |||||
September | 25,200 | 376,000 |
Determine the fixed and variable components of repair expense using the high-low method. Use copies made as the measure of activity. (Round variable component per copy to 2 decimal places, e.g. 0.15.)
Variable Component | $enter a dollar amount per copy rounded to 2 decimal places | per copy | ||
Fixed Component | $enter a dollar amount per month rounded to 0 decimal places | per month |
QUESTION 2
Current Attempt in Progress
Carla has estimated that fixed costs per month are $347,276 and variable cost per dollar of sales is $0.32.
What is the break-even point per month in sales dollars?
Break-even point | $enter break-even point per month in dollars |
What level of sales dollars is needed for a monthly profit of $33,388?
Sales | $enter sales in dollars |
For the month of July, the marina anticipates sales of $980,700. What is the expected level of profit?
Expected level of profit | $enter expected level of profit in dollars |
QUESTION 3
Headland, Inc. produces stereo speakers. The selling price per pair of speakers is $1,000. The variable cost of production is $370and the fixed cost per month is $43,344. For November, the company expects to sell 128 pairs of speakers.
Calculate expected profit.
Expected profit | $enter expected profit in dollars |
Calculate the contribution margin ratio, Break-even sales, Expected sales and margin of safety in dollars. (Round contribution margin ratio and intermediate calculations to 2 decimal places, e.g. 15.25 and all other answers to 0 decimal places, e.g. 5,275.)
Contribution margin ratio | enter contribution margin ratio rounded to 2 decimal places | ||
Break-even sales | $enter break-even sales in dollars rounded to 0 decimal places | ||
Expected sales | $enter expected sales in dollars rounded to 0 decimal places | ||
Margin of safety | $enter margin of safety in dollars rounded to 0 decimal places |
QUESTION 4
Uli Manufacturing produces snow shovels. The selling price per snow shovel is $30.00. There is no beginning inventory.
Costs involved in production are: | ||
Direct material | $5.00 | |
Direct labor | 4.00 | |
Variable manufacturing overhead | 4.00 | |
Total variable manufacturing costs per unit | $13.00 | |
Fixed manufacturing overhead per year | $177,840 |
In addition, the company has fixed selling and administrative costs of $172,200 per year.
During the year, Uli produces 49,400 snow shovels and sells 44,320 snow shovels.
- A) What is the value of ending inventory using full costing?
- B) What is the value of ending inventory using variable costing?
- C) Calculate the difference in full costing net income and variable costing net income without preparing either income statement.
- D) What is the cost of goods sold using full costing?
- E) What is the variable cost of goods sold?
- F) What is net income using full costing?
- G) What is net income using variable costing?
- H) How much fixed manufacturing overhead is in ending inventory under full costing? Compare this amount to the difference in the net incomes calculated in “C” above.