![jorozco3209](/avatars/33786.jpg)
jorozco3209
03.03.2020 •
Business
Variable and absorption costing and breakeven points. Camino, a leading firm in the sports industry, produces basketballs for the consumer market. For the year ended December 31, 2017, Camino sold 400,000 basketballs at an average selling price of $12 per unit. The following information also relates to 2017 (assume constant unit costs and no variances of any kind):
Inventory, January 1, 2017: 0 basketballs
Inventory, December 31, 2017: 20,000 basketballs
Fixed manufacturing costs: $380,000
Fixed administrative costs: $660,000
Direct materials costs: $ 3 per basketball
Direct labor costs: $ 4 per basketball
1. Prepare income statements under (a) variable, (b) absorption, and (c) throughput costing for the year endedDecember 31,2017.
2. Calculate the breakeven point (in basketballs sold) in 2017 under:
a. Variable costing
b. Absorption costing
c. Throughput costing
3. Suppose direct materials costs were $4 per basketball instead. Assuming all other data are the same, calculate the minimum number of basketballs Camino must have sold in 2017 to attain a target operating income of $120,000 under:
a. Variable costing
b. Absorption costing
c. Throughput costing
Solved
Show answers
More tips
- C Computers and Internet How to Get Rid of 3pic Infector: Everything You Need to Know...
- A Auto and Moto Experience the World of the Most Expensive Cars on the Planet...
- S Style and Beauty How to Get Rid of a Double Chin?...
- F Food and Cooking How to Cook Julienne? Recipes and Tips...
- D Dating, Love, Relationships 10 Useful Tips on How to Survive a Breakup?...
- F Food and Cooking Apple Cider Vinegar: The Ultimate Health and Beauty Solution...
- C Computers and Internet Е-head: How it Simplifies Life for Users?...
- F Family and Home How to Choose the Best Diapers for Your Baby?...
- F Family and Home Parquet or laminate, which is better?...
- L Leisure and Entertainment How to Properly Wind Fishing Line onto a Reel?...
Answers on questions: Business
- B Business Accepting Business at a Special Price Forever Ready Company expects to operate at 88% of productive capacity during May. The total manufacturing costs for May for the production...
- M Mathematics Lily is considering taking out a 6-year loan with monthly payments of $225 at an APR of 1.7% , compounded monthly, and this equates to a loan of $15,390.84. Assuming that Lily s...
- B Biology Which reservior in the water cycle contains the most water? A. ice capsB. ground waterC. oceansD. surface water...
- P Physics How can you improve your overall diet?...
- M Mathematics Circle Q has a circumference of approzimately 50 centimeters. What is the approximate of, d?...
- B Biology How are lysosomes and vacuoles the same...
- B Biology A human baby is born with one X chromosome and one Y chromosome what must be true about this baby...
- M Mathematics I might need some help on this one......
- M Mathematics Which comparison of the time for each test is correct?...
- E English Write an original sentence (capitalization and punctuation are a must) with a predicatenominative and a relative pronoun.ty :)...
Ответ:
1 VARIABLE COSTINGABSORPTTIONTHROUGHPUT
sales 4800000 4800000 4800000
opening stock0 0 0
produced 2940000 3320000 1260000
closing 140000 158095.24 60000
cost of sales 2800000 3161904.762 1200000
contribution 2000000 1638095.238 3600000
direct labour 1680000
fixed cost
admin 660000 660000 660000
manufacturing 380000 380000
net income 960000 978095.2381 880000
2. variable absorption throughput
breakeven $218,487 $160,976 121353.5589
3. units to be sold145000 87640.44944 332000
Explanation:
UNIT COST 7 7.90 3
material 3 3 3
labor 4 4
fixed cost 0.90
produced units
opening 0 0 0
produced 420000 420000 420000
closing 20000 20000 20000
sold 400000 400000 400000
breakeven = fixed cost / contribution per unit
3. change in unit cost
variable absorptionthroughput
material 4 4 4
labour 4 4
fixed cost 0.9
unit cost 8 8.9 4
sales
opening stock
produced
closing
cost of sales
contribution 1160000 780000 1328000
direct labour 168000
fixed cost
admin 660000 660000 660000
manufacturing 380000 380000
net income 120000 120000 120000
to get the amounts for the closing stock, opening stock, produced and sold we multiply by unit cost
to get produced units we take sold stock plus closing stock less openning stock
to get the units that must be sold to make net income of 120 000
we do bottom up approach and can stop at contribution then divide it by contribution per unit.
Ответ:
im the ugly one
Explanation: