Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Cost accounting (https://www.askmehelpdesk.com/showthread.php?t=619617)

  • Dec 14, 2011, 12:07 PM
    alwaysaprofit
    Cost accounting
    Lance Curry Inc. Has three products X, why, and Z.  X sells for $20 with a variable cost of $8, why sells for $30 with a variable cost of $21, Z sells for $50 with a variable cost of $40.  Fixed costs amount to $214,000.  Furthermore, assume that for every 5 units of X that are sold, the company sells 3 units of why and 2 units of Z.

    1)      Determine break-even in units and dollars of each product.
    2)      Assuming a desired profit of $107,000 (assume no taxes), how much of each product should be sold?
    3)      Assuming a desired net profit of $149,800 and a tax rate of 30%, how much of each product should be sold?
    4)      At a targeted profit level of $53,500 (no taxes), by how much would profit increase if sales increase by 80%?  (Hint: use Operating Leverage).  Show the percentage and the amount.

  • All times are GMT -7. The time now is 03:08 PM.