Assignment Cost Accounting

Published on January 2017 | Categories: Documents | Downloads: 15 | Comments: 0 | Views: 155
of 3
Download PDF   Embed   Report

Comments

Content

3.20

Doral Company 5,000,000 $0.50 $2,500,000 A B C

Units sold per year Price per unit Annual Revenue

Fixed Cost Variable Cost (per unit) Total Variable cost 1a 1 b. Operating Income Break even revenue

$900,000 $0.30 $1,500,000 $100,000 $2,250,000

D E F C-D-F D /(1- (E/B))

2

A $0.04 per unit increase in variable costs New Variable cost per unit Total Variable cost Operating Income $0.34 $1,700,000 ($100,000) G H C -D - H

3

10% increase in fixed cost 10% increase in units sold New Fixed Cost Units sold per year New Revenue Operating revenue $990,000 5,500,000.0 $2,750,000 $260,000 I J K K-I-F

4

A 20% decrease in fixed costs, a 20% decrease in selling price, a 10% decrease in variable cost per unit, and a 40% increase in units sold Units sold per year Price per unit Annual Revenue 7,000,000 $0.40 $2,800,000 L

Fixed Cost Variable Cost (per unit) Total Variable cost Operating Income

$720,000 $0.27 $1,890,000 $190,000

M N L-M-N

5 A 10% increase in fixed costs Units sold per year Price per unit Annual Revenue Fixed Cost Variable Cost (per unit) Total Variable cost Breakeven units 5,000,000 $0.50 $2,500,000 $990,000 $0.30 $1,500,000 4,950,000 P Q

O

P/(O-Q)

6 A 10% increase in selling price and a $20,000 increase in fixed costs Units sold per year Price per unit Annual Revenue Fixed Cost Variable Cost (per unit) Total Variable cost Breakeven units 5,000,000 $0.55 $2,750,000 $920,000 $0.30 $1,500,000 3,680,000 P Q

O

P/(O-Q)

ble cost per unit, and

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close