Question: Answer all these questions with the right answer letter next to each question number 47-Jasmine Inc. sells a product for $66 per unit. Variable costs
Answer all these questions with the right answer letter next to each question number
47-Jasmine Inc. sells a product for $66 per unit. Variable costs per unit are $34, and monthly fixed costs are $275,200. a. What is the break-even point in units?
b. What unit sales would be required to earn a target profit of $153,600?
c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars?
48-Marcy has received a special order for 2,000 units of its product at a special price of $60. The product normally sells for $80 and has the following manufacturing costs:
| Per unit | |||
| Direct materials | $ | 24 | |
| Direct labor | 16 | ||
| Variable manufacturing overhead | 12 | ||
| Fixed manufacturing overhead | 20 | ||
| Unit cost | $ | 72 | |
Assume that Marcy has sufficient capacity to fill the order without harming normal production and sales and all fixed overhead is unavoidable. a. If Marcy accepts the order, what effect will the order have on the companys short-term profit?
b. What minimum price should Marcy charge to achieve a $20,000 incremental profit?
c. Now assume Marcy is currently operating at full capacity and cannot fill the order without harming normal production and sales. If Marcy accepts the order, what effect will the order have on the companys short-term profit?
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