(Solution Document) Question 1 (1 point) A firm has the capacity to produce 809,443 units of a produ


Question 1 (1 point)


A firm has the capacity to produce 809,443 units of a product each year. At present, it is operating at 38 percent of capacity. The firm's annual revenue is $851,761. Annual fixed costs are $441,363 and the variable costs are $.54 cents per unit.   The following equations will be useful.

Profit = Revenue - Costs
Revenue = Price each * quantity
Costs = Fixed Cost + Variable Costs
Variable Costs = Fixed Cost + (cost each * quantity)
At the break even point, Profit = 0

What is the firm's annual profit or loss?

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Question 2 (1 point)


A firm has the capacity to produce 604,401 units of a product each year. At present, it is operating at 30 percent of capacity. The firm's annual revenue is $1,322,700. Annual fixed costs are $469,133 and the variable costs are $.73 cents per unit.   The following equations will be useful.

Profit = Revenue - Costs
Revenue = Price each * quantity
Costs = Fixed Cost + Variable Costs
Variable Costs = Fixed Cost + (cost each * quantity)
At the break even point, Profit = 0

What is the price for each unit?

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Question 3 (1 point)


A firm has the capacity to produce 675,294 units of a product each year. At present, it is operating at 59 percent of capacity. The firm's annual revenue is $523,236. Annual fixed costs are $418,463 and the variable costs are $.60 cents per unit.   The following equations will be useful.

Profit = Revenue - Costs
Revenue = Price each * quantity
Costs = Fixed Cost + Variable Costs
Variable Costs = Fixed Cost + (cost each * quantity)
At the break even point, Profit = 0

At what volume of sales does the firm break even?

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Question 4 (1 point)


 The Janesky Company has collected data on the manufacture of 9,079 robot grippers last month.  The breakdown of total costs is shown below.  They now need to plan for future months.

Units sold last month 9,079
Direct materials $103,633
Direct labor $482,289
Manufacturing variable overhead $455,393
Selling and administrative costs $358,510

What was the total  cost per unit?

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Question 5 (1 point)


 The Janesky Company has collected data on the manufacture of 7,688 robot grippers last month.  The breakdown of total costs is shown below.  They now need to plan for future months.

Units sold last month 7,688
Direct materials $430,316
Direct labor $185,420
Manufacturing variable overhead $105,738
Selling and administrative costs $350,154

What was the variable cost per unit?

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Question 6 (1 point)


 The Janesky Company has collected data on the manufacture of 2,637 robot grippers last month.  The breakdown of total costs is shown below.  They now need to plan for future months.

Units sold last month 2,637
Direct materials $323,643
Direct labor $238,047
Manufacturing variable overhead $402,671
Selling and administrative costs $466,147

 Janesky is forecasting that 5,558 units will be produced and sold without any increase in fixed costs in the coming month.  What would be the total cost based on last months cost data?

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Question 7 (1 point)


 The Janesky Company has collected data on the manufacture of 8,388 robot grippers last month.  The breakdown of total costs is shown below.  They now need to plan for future months.

Units sold last month 8,388
Direct materials $272,615
Direct labor $117,500
Manufacturing variable overhead $447,354
Selling and administrative costs $461,116

What would be the break even price to produce and sell 7,710 units in the coming month?

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Question 8 (1 point)


 The Janesky Company has collected data on the manufacture of 1,944 robot grippers last month.  The breakdown of total costs is shown below.  They now need to plan for future months.

Units sold last month 1,944
Direct materials $343,836
Direct labor $242,293
Manufacturing variable overhead $483,202
Selling and administrative costs $103,688

What is the break even quantity for a price of $405?

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Question 9 (1 point)


 Janesky Compamy has been asked by a customer to ship an additional 250 units of their product as a special emergency order.   You could do this on overtime during the weekend when labor costs would be time and a half.  Sufficient materials are available in-house.

Units sold last month 4,350
Direct materials $201,636
Direct labor $403,636
Manufacturing variable overhead $411,296
Selling and administrative costs $409,995

It the policy on such special orders is a markup (over cost) of 16%, what should you charge for the 250 units?

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Question 10 (1 point)


 Janesky Compamy has been asked by a customer to ship an additional 200 units of their product as a special emergency order.   You could do this on overtime during the weekend when labor costs would be time and a half.  Sufficient materials are available in-house.

When quoting this new price, SG&A should be ignored?

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