Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 06 May 2018 My Price 7.00

Iron Decor

3. Comprehensive Problem: Iron Decor manufactures decorative iron railings. In preparing for next years operations, management has developed the following estimates: Total Per Unit Sales (20,000 unit $1,000,000 $50.00 Direct materials $200,000 $10.00 Direct labor (variable).......... $50,000 $2.50 Manufacturing overhead: Variable................................. $70,000 $3.50 Fixed...................................... $80,000 $4.00 Selling & administrative: Variable $100,000 $5.00 Fixed..................................... $30,000 $1.50 Required: Compute the following items: a. Unit contribution margin. b. Contribution margin ratio c. Break-even in units. d. Break-even in dollar sales. e. What would be the sales in units that will assure the company to gain its $325,000 profit? f. What would be the sales in dollars that will assure the company to gain its $165,500 profit? g. Margin of safety in dollars and percentage h. What is the degree of operating leverage if the company i. If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income?

Iron Decor manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Compute the following items: Unit contribution margin. Contribution margin ratio. Break-even in units. Break-even in dollar sales. What would be the sales in units that will assure the company to gain its $325,000 profit? What would be the sales in dollars that will assure the company to gain its $165, 500 profit? Margin of safety in dollars and percentage. What is the degree of operating leverage if the company? If the sales volume increases by 20% with no change in total fixed expenses, what will be the change in net operating income?

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Maurice Tutor
(5)
Status NEW Posted 06 May 2018 07:05 PM My Price 7.00

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