[danambjones]

Spencer Company expects to sell 60,000 units next year. Variable production costs are $4 per unit, and variable selling costs are 10% of the selling price. Fixed expenses are $115,000 per year, and the company has set a target profit of $50,000. Based on this information, the unit selling price should be:

The answer is $7.50

Can you show me the work to get this answer?
thanks!

[KongTheKonqueror]

Let X=the selling price

(60,000 units sold)*(X $ per unit) - ($115,000 fixed costs) - (60,000 units sold)*(.1X selling costs) - (60,000 units sold)*($4 unit variable cost)= $50,000 target profit.

Solve for X.

60,000X - 115,000 - 6,000X - 240,000 = 55,000
54,000X = 405,000
X= $7.5

[ibrahim-89]

From book managerial accounting 12 th Problem 5-14 page 221

[bwalker]

Do you have the textbook Principles of Managerial Accounting 7th ed. By Ronald W. Hilton

[tmels]

I need help with Managerial accounting problem.

the company is currently bidding on a potential order from Dacon for 7,000 Model 350 motors. The estimated cost of each motor is $55 as follows:
Direct material $25
Direct Labor $ 10
Overhead $ 20
Total $ 55
the predetermined overhead rate is $2 per direct labor dollar. This was estimated by dividing estimated annual overhead $1,000,000 by estimated annual direct labor $5,000,000. The 10,000,000 of overhead is composed of $4,000,000 of variable and 6,000,000 of fixed costs. The largest fixed costs relates to depreciation of the plant and equipment.

With respect to overhead, what is the opportunity cost of producing model 350 motor?

[tmels]

No, I don't have the book. I have managerial accounting ed 3 by james jiambalvo

[tmels]

But I don't have the book
Can any one help me?

[atalatmar]

What is prime costs

[pready]

Prime cost is Direct Materials + Direct Labor only.

[herbison]

How much would you have to invest today in the bank at an interest rate 10% to have an annuity of $5000 per year for 7 years, with nothing left at the end of 7 years

[kimau]

Decker Products manufactures standard and deluxe wooden swing sets. Selected data related to each product is as follows:

Standard Deluxe
Sales price per unit $900 $2,000
Direct materials per unit 100 500
Direct labor per unit 300 700
Variable overhead per unit 50 100
Machine hours per unit 4 8


Most of the manufacturing process for the sets is done on machines. There is a maximum of 10,000 machine hours available each year.

Refer to the Decker Products information above. If demand were strong for both sets and the company could sell an unlimited number of either style, what is the maximum total contribution margin the company could have?