Question 1 of 10 Why is it common for producers of services to sell through short distribution channels directly to the end user
1 answer:
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Answer:
BEP units: 42,017
BEP dollars: 2,100,850
unit cost at 100,000 units produced: 22.40 dollars
operating profit : 1,656,000
Explanation:
50 - 2.4 = 47.6 contirbution margin per unit
2,000,000/47.6 = 42.016,80 BEP units
BEP units x sales price = BEP dollars
42,017 x 50 = 2,100,850
(B)
fixed cosy/ units produced = fixed cost per unit
2,000,000/ 100,000 = 20 fixed cost per unit
fixed cost + variable cost = total cost
20 + 2.40 = 22.4
(C)
There are 40% units sold at the preferred customer at cost
So we sale at gain only 60% of the units:
100,000 units x 60% x 50 = 3,000,000
100,000 units x 40% x 22.40 = 896,000
Total revenue 3,896,000
Cost: 100,000 x 22.40 <u> (2,240,000) </u>
operating profit 1,656,000
Answer:
$409185
Explanation:
Given: Budgeted output units: 28,475 units
Budgeted machine-hours: 17,085 hours
Budgeted variable manufacturing overhead costs for 28,475 units: $358,785
Actual output units produced: 32,475 units
Actual machine-hours used: 15,000 hours
Actual variable manufacturing overhead costs: $384,060.
First, we will find Budgeted machine hour per unit produced.
Budgeted machine hour per unit produced=
⇒
∴Budgeted machine hour per unit produced= 0.6
Budgeted machine hours allowed for 32475 units=
Budgeted variable overhead rate per machine hour=
Budgeted variable overhead rate per machine hour=
Now, lets find out flexible budget amount.
Flexible budget amount=
Flexible budget amount=
∴Flexible budget amount for variable manufacturing overhead= $409185