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Montano1993 [528]
3 years ago
5

Assume that you are part of the accounting team for Logan Digital. The company currently expects to sell 362 units for total rev

enue of $16,300 each month. Logan Digital estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $4,800 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below.
Logan Digital is examining cost behavior patterns. Your recommendation is to first determine the break-even point in units. First, calculate the contribution margin (CM) per unit (rounded to the nearest dollar).
Next, complete the formula below to determine the break-even units.
Total Fixed Costs / Contribution Margin per Unit = Units
A profit-volume graph helps managers to visualize the relationship between profits and units sold. The data for Logan Digital has been used to construct the profit-volume graph below. The purple points (diamond symbols) plot the profit line. The operating loss is the shaded area bordered by the red points (cross symbols). The operating profit is the area bounded by the green points (triangle symbols). Graph the correct profit-value graph.
APPLY THE CONCEPTS: Effect of Changes to Sales Price, Variable Costs and Fixed Costs
Now consider each of the following scenarios for Logan Digital. Calculate the contribution margin (CM) per unit, rounded to nearest dollar, and the new break-even point in units, rounded to the nearest whole unit, for each scenario separately.
Scenario 1 Scenario 2 Scenario 3
Logan will dispose of a machine in the factory. The depreciation on that equipment is $500 per month. After some extensive market research, Logan has determined that a sales price increase of $2 per unit will not affect the sales volume and will be effective immediately. Logan has been experiencing quality problems with a materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit.

Business
1 answer:
IceJOKER [234]3 years ago
8 0

Full question attached

Answer and Explanation:

Please find attached

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Implementation lag

Explanation:

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Administrative lag is the time it takes to enact the needed policies. Operational lag is the time it takes for the policy to be enacted to the time the effects are felt in the economy

Recognition lag is the amount of time it takes for authorities to recognise a problem in the economy that needs fiscal policy intervention.

Implementation lag is the amount of time it takes for fiscal policy decisions to be implemented.

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What types of services would you expect to find at a neighborhood wellness center?
elixir [45]
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Lois is selling her needlework shop to Simon. Simon is also purchasing the name of the business from Lois, all of the fixtures,
Ira Lisetskai [31]

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D. Both A and B

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When selling the business to Simon, Lois will provide him the financial statements and bill of sale.

3 0
3 years ago
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Job 412 was one of the many jobs started and completed during the year. the job required $10,000 in direct materials and 36 hour
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Explanation:

Creating a friendly culture will motivate the employees to attend work everyday, setting goals and targets with their input which makes the targets and goals look achievable, this will also motivate the employees and result in better performance. Sense of responsibility is also important if they are given a task they should be liable for it and they should be accountable for the work done by themselves this initiative will minimize mistakes and encourage perfection.

7 0
3 years ago
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