Answer:
Equivalent unit(material) = 17,700
Equivalent unit(conversion costs) = 13,301
Explanation:
A. Computation for equivalent unit(material)
<u>Particular Unit</u>
Units transferred 9,400
<u>Ending work in process 8,300(100%) 8,300</u>
<u>Equivalent unit(material) 17,700</u>
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B. Computation for equivalent unit(conversion costs)
<u>Particular Unit</u>
Units transferred 9,400
<u>Ending work in process 8,300(47%) 3,901</u>
<u>Equivalent unit(conversion costs) 13,301</u>
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Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The company's annual fixed costs are $879,200. Management targets an annual pretax income of $1,400,000. Assume that fixed costs remain at $879,200.
A) Break-even point= (fixed costs + profit)/ contribution margin
Break-even point= (879,200 + 1,400,000)/(280 - 224)= 40,700 units
B) Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
Break-even point (dollars)= 2,279,200/ (56/280)= $11,396,000
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