二. Power Up provided the following total product cost data for sales of energy drinks during the past 8 months: Required Use the high-low method to: A.Compute the variable cost of energy drinks. B.Compute the total fixed cost of energy drinks. C.Represent the cost function in equation form. D.What is the expected product cost when 51 energy drinks are sold?

二. Power Up provided the following total product cost data for sales of energy drinks during the past 8 months: Required Use the high-low method to: A.Compute the variable cost of energy drinks. B.Compute the total fixed cost of energy drinks. C.Represent the cost function in equation form. D.What is the expected product cost when 51 energy drinks are sold?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 22E: Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart...

See similar textbooks

Similar questions

Java Joe coffees wants to find an equation to estimate monthly utility costs. Java Joe's has been in business for one year and has collected the following cost data for utilities 1.which of the preceding costs is variable? Fixed? Mixed? Explain 2. using the high-low method, determine the cost function for each cost 3. combine the preceding information to get a monthly utility cost function for Java 4. next month, Java's expects to use 2200 kilowatt hours of electricity, make 1500 minutes of telephone calls and use 32000 gallons of water. Estimate total cost of utilities for the month Month Electricity bill Kilowatt hours used telefone telefone min used Water bill Gallonsof water used January $360 1200 $92.00 1100 $60 30560 February $420 1400 $91.80 1060 $60 26800 March $549 1830 $94.80 1240 $60 31450 April $405 1350 $89.60 980 $60 29965 May $588 1960 $98.00 1400 $60 30568 June $624 2080…
Chapter 25 eBook 4 Show Me How Product Cost Method of Product Costing Voice Com, Inc. uses the product cost method of applying the cost-plus approach to product pricing. The costs of producing and selling 5,270 cell phones are as follows: Variable costs per unit: Fixed costs: Direct materials $71 Factory overhead $199,500 Direct labor 37 Selling and administrative expenses 70,800 Factory overhead 22 Selling and administrative expenses 22 Total variable cost per unit $152 Voice Com desires a profit egual to a 15% rate of return on invested assets of $601,600. a. Determine the amount of desired profit from the production and sale of 5,270 cell phones. $ 90,240 v b. Determine the product cost per unit for the production of 5,270 of cell phones. Round your answer to the nearest whole dollar. 168 V per unit c. Determine the product cost markup percentage for cell phones. Round your answer to two decimal places. 31 х%
1) Using high-low method calculate and express the cost behavior in equation form 2) Predict the energy cost for a month with production of 26,000 pints of apple sauce
Total cost method of product pricing Based on the data presented in Exercise 17, assume that Smart Stream Inc. uses the total cost method of applying the cost-plus approach to product pricing. A. Determine the total costs and the total cost amount per unit for the production and sale of 10,000 cellular phones. B. Determine the total cost markup percentage (rounded to two decimal places) for cellular phones. C. Determine the selling price of cellular phones. (Round markup to the nearest dollar.)
Refer to Cornerstone Exercise 3.4 for data on Dohini Manufacturing Companys purchasing cost and number of purchase orders. The controller for Dohini Manufacturing ran regression on the data, and the coefficients shown by the regression program are: Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 2. If Dohini Manufacturing Company estimates that next month will have 430 purchase orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if Dohini Manufacturing wants to estimate purchasing cost for the coming year and expects 5,340 purchase orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) What is the total fixed purchasing cost? Why doesnt it equal the fixed cost calculated in Requirement 1?
JPL, Incorporated has provided its sales and expense data for the most recent period. The Controller has asked you prepare a spreadsheet that shows the related CVP Analysis computations. Given the following information complete a CVP analysis for JPL, Incorporated: Unit sales Selling price per unit Variable expenses per unit Fixed expenses 11,200 units $ 75 per unit $45 per unit $ 210,000 Required: Use the data to answer the following. 1. Compute the CM ratio and variable expense ratio. 2. Compute the break-even sales. 3. Compute the margin of safety. 4. Compute the degree of operating leverage.
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 25% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Required sales price per unit Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print $ $ Product C 600.00 $ 300.00 270.00 1,170.00 S Done - X Product D 2,400.00 200.00 604.00 3,204.00
The activity driver for the shipping activity of Withstand Inc. is the number of orders shipped. Product A uses 30 orders, and Product B uses 70 orders. Calculate the consumption ratios for each product. (Note: Round your answers to two decimal places.) a.0.30; 0.70 b.0.25; 0.75 c.0.20; 0.80 d.0.65; 0.35
Spectrum Corp. makes two products: C and D. The following data have been summarized: (Click the icon to view the data.) Spectrum Corp. desires a 27% target gross profit after covering all product costs. Considering the total product costs assigned to the Products C and D, what would Spectrum have to charge the customer to achieve that gross profit? Round to two decimal places. Begin by selecting the formula to compute the amount that the company should charge for each product. Total product cost per unit Spectrum should charge 2091.10 for Product C. Data table Direct materials cost per unit Direct labor cost per unit Indirect manufacturing cost per unit Total costs assigned Print Product cost as a percentage of sales price Product C $ 900.00 $ 400.00 226.50 $ 1,526.50 $ Done Product D 2,400.00 100.00 531.00 3,031.00 X = Required sales price per unit G
1. How would a product life-cycle income statement differ from the above income statements? 2. Prepare a three-year life-cycle income statement for both products. Which product appears to be more profitable and why? 3. Prepare a schedule showing each cost category as a percentage of total annual costs. What do you think this indicates about the profitability of each product over the three-year life cycle?
Mountain Air Coffee purchases green coffee beans from various suppliers and then roasts the coffee beans in its roasting facility. (Click the icon to view the manufacturing information.) Read the r Requireme First, selec 15-pound d Direct mat More info The roasted beans are sold in 15-pound cases to grocery stores and restaurants for $85 per case. Each case of roasted coffee beans requires 25 pounds of unroasted green coffee beans. The company can purchase the green coffee beans, including freight-ih and purchase discounts, for $2.50 per pound. Each case of roasted coffee beans requires 0.10 hours of direct labor in the production process. Direct laborers are paid $19 per hour, which includes payroll taxes and employee benefits. The company uses machine hours to allocate its manufacturing overhead. Each case of roasted coffee beans requires 0.20 machine hours to produce. The company expects to produce 750,000 cases of roasted coffee beans in the upcoming year. At this production…
Johnson Company manufactures and sells a single product. The company's sales and expenses for last year follow: E(Click the icon to view the information.) X Data Table Read the requirements Requirement 1. Fill in the missing numbers in the table. Use the following questions to help fill in the missing numbers in the table: Total Per Unit % a. What is the total contribution margin? $ 81,250 $ Sales 25 ? The total contribution margin is $ ? Variable expenses Contribution.margin. 13,000 Fixed expenses $ 19,500 Operating income Done Print