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Artist 52 [7]
3 years ago
7

Easywriter manufactures an erasable ballpoint pen, which sells for $1.75 per unit. management recently finished analyzing the re

sults of the company's operations for the current month. at a break-even point of 40,000 units, the company's total variable costs are $50,000 and its total fixed costs amount to $20,000.
a. calculate the contribution margin per unit. (round your answer to 2 decimal places.)

b. calculate the company's margin of safety if monthly sales total 45,000 units.

c. estimate the company's monthly operating loss if it sells only 38,000 units. d-1. compute the total cost per unit at a production level of 40,000 pens per month. (round your answer to 2 decimal places.) d-2. compute the total cost per unit at a production level of 50,000 pens per month.
Business
1 answer:
maxonik [38]3 years ago
6 0

a. 50 cents

Contribution margin per unit is price per unit- variable cost per unit

1.75 - ($50,000/40,000 units)

1.75 - 1.25 = $ .50

b. $8750

Margin of safety is the expected sales - break even sales

(45,000 units * $1.75 per unit) - (40,000 *1.75)

78,750 - 70,000 = $8750

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Answer:

Direct material used= $88,600

Explanation:

Giving the following information:

Beginning raw materials inventory$12,000

Raw materials purchase 88,000

Ending raw materials inventory 11,400

<u>To calculate the direct material used in production, we need to use the following formula:</u>

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 12,000 + 88,000 - 11,400

Direct material used= $88,600

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Generally, a firm's asset deflation mostly reflects a decline in the productive capacity of assets and therefore reduces potential output.

<h3>What is an asset deflation?</h3>

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Therefore, the Option A is correct.

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Too much planning on the job can get in the way of enjoying things. true or false.
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Primare Corporation has provided the following data concerning last month’s manufacturing operations.
musickatia [10]

Explanation:

                                       Primare Corporation

                                 Cost of Goods Manufactured

Beginning work-in-process inventory                                  $56,000

Manufacturing costs:

Direct materials:                                                  

Beginning inventory                                   $12,000

Purchases                                                    $30,000

Materials available                                      $42,000

Less:  Ending inventory                              -$18,000

Direct materials used                                                             $24,000

Less:Indirect materials included in manufacturing overhead -$5,000

Other manufacturing costs                                                  

Direct labor                                                                     $58,0000

Manufacturing overhead applied to work in process $87,000

Less:  Ending work-in-process                                                  $65,000

Cost of goods manufactured                                                    $155,000

b.                                     Primare Corporation

                                 Cost of Goods Sold

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Add: Cost of goods manufactured                                           $155,000

Finished goods available for sale                                             $190,000

Less:  Ending finished goods inventory                                   -$42,000

Unadjusted cost of goods sold                                                  $148,000

Add: Under applied overhead                                                    $4,000

Cost of goods sold                                                                      $152,000

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Explanation:

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