Bugatti, Inc. decided to institute an advertising campaign that would cost $75,000. Variable costs will remain at $15 per unit. Bugatti is currently selling 100,000 units of its product at $25 per unit. The marketing department is estimating that there will be a 10 percent increase in sales volume. With all else remaining the same, what will be the result of this decision?

Assume the following information: ​ Selling price per unit $       180 Contribution margin ratio 48% Total fixed costs $270,000 ​ How many units must be sold to generate a before-tax profit of $54,000?

Golden Ring Company produces two types of product: Large and Larger. Two work orders for two batches of the products are shown below, along with some additional cost information:   ​ Large Larger ​ Work Order 10 Work Order 11 Direct materials (actual costs) $45,000 $75,000 ​ ​ ​ Applied conversion costs: ​ ​ Mixing ? ? Cooking $12,000 $12,000 Bottling $10,000 $15,000 ​ ​ ​ Batch size (bottles) 5,000 5,000 ​ In the Mixing Department, conversion costs are applied on the basis of direct labor hours. Budgeted conversion costs for the department for the year were $50,000 for labor and $125,000 for overhead. Budgeted direct labor hours were 2,500. It takes three minutes to mix the ingredients needed for each bottle. Large (Work Order 10) and Larger (Work Order 11) flow through the Mixing Department first, then through the Cooking and Bottling departments. What are Golden Ring Company’s conversion costs applied to Large (Work Order 10) from the Mixing Department for each batch?

In a CVP graph, the intersection of the total costs line and the total sales revenue line is the break-even point in units.

Breadline Corporation has the following information for the current year:   Selling price per unit $     10 Variable costs per unit $       6 Fixed costs $1,000 Required: Prepare a cost-volume-profit graph identifying the following items:   a. Total costs line b. Total fixed costs line c. Total variable costs line d. Total revenues line e. Break-even point in sales dollars f. Break-even point in units g. Profit area h. Loss area

Information about the Harmonious Company’s two products includes: ​   Product X Product Y Unit selling price $     11.25 $11.25 Unit variable costs:       Manufacturing $       5.25 $  6.75   Selling    .75    .75 Total $       6.00 $  7.50       Monthly fixed costs are as follows:       Manufacturing $   82,500     Selling and administrative    45,000   Total $ 127,500   ​ If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is

Amber Company had the following information: ​ Activity Driver Unit Variable Cost Level of Activity Driver Units sold $         30    — Setups  1,500    50 Engineering hours     50 1,200       Other data:         Total fixed costs (traditional) $500,000       Total fixed costs (Activity-based costing) 200,000       Unit selling price               50   ​ How many units need to be sold to produce a before-tax profit of $100,000 using activity-based costing (ABC)? 

Assume the following information: Variable cost ratio 80% Total fixed costs $60,000 ​ What volume of sales dollars is needed to break even?

Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows:   ​ Copy Center 1 Copy Center 2 Normal activity (copies) 600,000 400,000 Actual activity (copies) 500,000 440,000 ​ For purposes of performance evaluation, fixed costs allocated to Copy Center 2 are:

An actual overhead rate can be calculated