Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 4.00

Prachi Company

Prachi Company produces and sells disposable foil baking pans to retailers for $2.45 per pan. The variable costs per pan are as follows:
Direct materials ………………..$0.27
Direct labor ……………………..0.58
Variable overhead ………………0.63
Variable selling …………………0.17
Fixed manufacturing costs total $131,650 per year. Administrative costs (all fixed) total $18,350.

Required:
1. Compute the number of pans that must be sold for Prachi to break even.
2. What is the unit variable cost? What is the unit variable manufacturing cost? Which is used in cost-volume-profit analysis and why?
3. How many pans must be sold for Prachi to earn operating income of $12,600?
4. How much sales revenue must Prachi have to earn operating income of $12,600?

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Jul 2017 12:07 PM My Price 4.00

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