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guajiro [1.7K]
3 years ago
13

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pound

s; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound, and receiving and handling costs are $0.10 per pound. The standard direct materials price per pound is ___ .
Business
1 answer:
Rasek [7]3 years ago
4 0

Answer:

Total= $4.33

Explanation:

Giving the following information:

Breakmorning Corporation produces a product that requires 2.6 pounds of materials per unit. The allowance for waste is 0.3 pounds; the allowance for spoilage is 0.1 pounds. The purchase price is $4 per pound, but a 2% discount is always taken. Freight costs are $0.15 per pound and receiving and handling costs are $0.10 per pound.

Purchase price= 4*0.98= 3.92

Allowance for waste= (0.03*3.92)= 0.1176

Allowance for spoilage= (0.01*3.92)= 0.0392

Freight= 0.15

Receiving and handling= 0.10

Total= $4.33

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Answer:

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Explanation:

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3 years ago
Whoosh Calendars imprints calendars with college names. The company has fixed expenses of $1,095,000 each month plus variable ex
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The number of cartons of calendars that Fast Spirit Calendars must sell each month to breakeven is 109500.

<h3>Breakeven</h3>

1. Number of cartons

Number of cartons=fixed expenses/contribution margin per carton

Number of cartons=1095000/(16.5-6.5)

Number of cartons=109500

2.  Target sales in dollars

Contribution margin ratio=contribution margin per carton/sales price per carton =

Contribution margin ratio=(16.5-6.5)/16.5

Contribution margin ratio=.61

Target sales in dollars=(fixed expenses + target operating income)/ contribution margin ratio

Target sales in dollars=(1095000+312000)/.61

Target sales in dollars=2,306,557

3. Contribution margin income statement

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(16.50x455,000)

Cost of goods sold 5,105,100

(6.50x455,000x68%)

Operating expenses 2,402,400

(6.50x455,000x32%)

Contribution margin  4,550,000

[(16.5-6.5)×455,000]

Fixed expenses 1095000

Operating income 3,455,000

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4. Margin of safety​ (in dollars)

Sales revenue - sales revenue at breakeven = margin of safety ( in dollars) - ( sales price per carton x breakeven cartons) = margin safety in dollars

Margin safety in dollars=7,507,500-(16.5x109500)

Margin safety in dollars=7,507,500-1,806,750

Margin safety in dollars=5,700,750

Operating leverage factor =Contribution margin/operating income

Operating leverage factor =4,550,000/3,455,000

Operating leverage factor =1.316

Operating leverage factor =1.32 (Approximately)

5.  Operating income

Operating income increase=Sales volume x operating leverage factor

Operating income increase=11%x1.32

Operating income increase=.1452

New volume=Original volume + increase in volume

{[455,000+45,500 x(16.5-6.5)]-1095000}-3,455,000

=[500,500x10)-1095000]-3,455,000

=(5,005,000-1095000)-3,455,000

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455,000/3,455,000

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Inconclusion the number of cartons of calendars that Fast Spirit Calendars must sell each month to breakeven is 109500.

Learn more about breakeven here:brainly.com/question/21137380

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Answer:

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