Van Horn Inc. sells a single product for $10. At a volume of…
Van Horn Inc. sells a single product for $10. At a volume of 8,200 units, variable costs are $4 per unit and fixed costs total $110,000. What dollar sales level would Van Horn have to achieve to earn a target profit of $160,000?
Read DetailsLangdon Inc. is studying whether to outsource its Human Reso…
Langdon Inc. is studying whether to outsource its Human Resources (H/R) activities. Salaried professionals who earn $390,000 would be terminated; in contrast, administrative assistants who earn $120,000 would be transferred elsewhere in the organization. Miscellaneous departmental overhead (e.g., supplies, copy charges, overnight delivery) is expected to decrease by $30,000, and $25,000 of corporate overhead, previously allocated to Human Resources, would be picked up by other departments. If Langdon can secure needed H/R services locally for $410,000, how much would the company benefit by outsourcing?
Read DetailsCost of goods manufactured for the year were $860,000. Begin…
Cost of goods manufactured for the year were $860,000. Beginning work-in-process inventory was $40,000. Ending work-in-process was $60,000. If the beginning finished goods inventory was $400,000 and the ending finished goods inventory was $990,000 what was the cost of goods sold for the year?
Read DetailsKing Enterprises, which uses the high-low method to analyze…
King Enterprises, which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company’s utilities cost. The company’s relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year: Month Utilities Machine Hours January $ 8,700 800 February 8,360 720 March 8,950 810 April 9,360 920 May 9,625 950 June 9,150 900 The fixed utilities cost per month for King is:
Read DetailsCassie’s Cookies produces gourmet cookies, which sell for $1…
Cassie’s Cookies produces gourmet cookies, which sell for $16 a basket. Variable costs per basket are $6 and fixed costs are $5,000 per month. If the company expects to sell 1,500 baskets of cookies, what is the margin of safety in dollars?
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