Shiloh Enterprises manufactures and sells gadgets. The business earned net income of $250,000 in 2016, when...
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Shiloh Enterprises manufactures and sells gadgets. The business earned net income of $250,000 in 2016, when sales was 6,000 units and data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Fixed expenses: Required: a) b) c) d) Direct Material Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs $38 $27 $15 $160,000 $85,000 $105,000 Compute the expected selling price per unit, using the equation method. (4 marks) Calculate Shiloh's break-even point in units and in sales dollars. (2 marks) Calculate the margin of safety in units and in sales dollars. (2 marks) Given the sales of 6,000 units, prepare a contribution margin income statement for the year ended December 31, 2016, detailing the components of total fixed costs and clearly showing contribution and net income. Shiloh Enterprises manufactures and sells gadgets. The business earned net income of $250,000 in 2016, when sales was 6,000 units and data for variable cost per unit and total fixed costs were as follows: Variable expenses per unit: Fixed expenses: Required: a) b) c) d) Direct Material Direct Labour Variable Manufacturing Overhead Fixed Manufacturing Overhead Fixed Selling Costs Fixed Administrative Costs $38 $27 $15 $160,000 $85,000 $105,000 Compute the expected selling price per unit, using the equation method. (4 marks) Calculate Shiloh's break-even point in units and in sales dollars. (2 marks) Calculate the margin of safety in units and in sales dollars. (2 marks) Given the sales of 6,000 units, prepare a contribution margin income statement for the year ended December 31, 2016, detailing the components of total fixed costs and clearly showing contribution and net income.
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Related Book For
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 978-0134475585
16th edition
Authors: Srikant M. Datar, Madhav V. Rajan
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