1 scott company s variable expenses are 72 of sales the company s break even poi 402944 | Homework Solutions

1. Scott Company’s variable expenses are 72% of sales. The company’s break even point in dollar sales is $2,450,000. If sales are $60,000 below the break even point, the company would report a a)$43,200 loss b) $60,000 loss c) $16,800 loss d) cannot be determined from the data given. 2. Vandinter Corporation produces and sells a single product. Data concerning that product appear below: selling price: $160.00 variable expense per unit:$32 fixed expense per month:$536,320 The break even in monthly unit sales is closest to a) 8,101 b) 3,352 c) 4,190 d) 16,760 3. Shun Corporation manufactures and sells a hand held calculator. The following information relates to Shun’s operations for last year: unit product cost under variable costing: $5.20 per unit fixed manufacturing overhead cost for the year: $260,000 fixed selling and administrative cost for the year: $180,000 units (calculators) produced and sold: $400,000 What is Shun’s unit product cost under absorption costing for last year? a) $4.10 b) $4.55 c) $5.85 d) $6.30 4. Beamish Inc., which produces a single product, has provided the following data for its most recent month of operations: number of units produced : 8,000 variable cost per unit: direct materials:$37 direct labor: $56 variable manufacturing overhead: $4 variable selling and administrative expense: $2 fixed costs: fixed manufacturing overhead: $312,000 fixed selling and administrative cost: $448,000 There were no beginning or ending inventories. The unit product cost under absorption costing was a) $93 b) $97 c) $136 d) $194 5. Lina Co. produced 100,000 units of its single product during the month of June. Costs incurred during June were as follows: direct materials:$100,000 direct labor:$80,000 variable manufacturing overhead: $ 40,000 fixed manufacturing overhead:$50,000 variable selling and administrative expense: $12,000 fixed selling and administrative cost: $45,000 Assume that direct labor is a variable cost. The unit product cost under absorption costing a) $3.27 b) $2.70 c) $2.20 d) $1.80 6. Higgins Company sells three products, Product A, Product B, and Product C. Sales during June totaled $1,500,000 in the company. The company’s overall contribution margin ratio was 38%, and its fixed expenses totaled $525,000 for the year. Sales by product were: Product A, $750,000; Product B, $450,000; and Product C, $300,000. Traceable fixed expenses were: Product A, $180,000; Product B, $150,000; and Product C, $90,000. The variable expenses were: Product A, $450,000; Product B, $270,000; and Product C, $___?___. The net operating income for the company as a whole for June was: a) $45,000 b) $105,000 c) $150,000 d) $570,000 7. Swifton Company produces a single product. Last year, the company had net operating income of $40,000 using variable costing. Beginning and ending inventories were 22,000 and 27,000 units, respectively. If the fixed manufacturing overhead cost was $3.00 per unit, what was the income using absorption costing? a) $15,000 b) $25,000 c) $40,000 d) $55,000