Wright Lighting Fixtures forecasts its sales in units for the next four months as follows: 15,000 17,000 14,500 13,000 March April May June Wright maintains an ending inventory for each month in the amount of two and one-half times the expected sales in the following month. The ending inventory for February (March’s beginning inventory) reflects this policy. Materials cost $7 per unit and are paid for in the month after production. Labor cost is $11 per unit and is paid for in the month incurred. Fixed overhead is $16,500 per month. Dividends of $20,900 are to be paid in May. The firm produced 14,000 units in February. Complete a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory. Wright Lighting Fixtures Production Schedule March April May June Projected unit sales Desired ending inventory Total units required Beginning inventory Units to be produced Cash Payments February March April May Units produced Material cost Labor cost Fixed overhead Dividends .Total cash payments. The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells for $53 and has a variable cost of $28. There are $40,000 in fixed costs involved in the production process. a. Compute the break-even point in units. Break-even point units b. Find the sales (in units) needed to earn a profit of $19,000. Sales quantity needed units Eaton Tool Company has fixed costs of $421,400, sells its units for $92, and has variable costs of $49 per unit. a. Compute the break-even point. Break-even point units b. Ms. Eaton comes up with a new plan to cut fixed costs to $330,000. However, more labor will now be reguired, which will increase variable costs per unit to $52. The sales price will remain at $92. What is the new break-even point? (Round your answer to the nearest whole number.) New break-even point units c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)? O Profitability will be less O Profitability will be more
Attachments:
68_5550253045325078234.png
69_5237785377542659557.png
70_4824932961022378642.png
Talk to us support@bestqualitywriters.com