Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Total Annual Costs (10,000 units) $ 118,000 55.000 122,000 95,000 $ 390,000 Required: a. Compute CPT's unit selling price that will yield a profit of $160,000. given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $173.100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)? Chandler Packaged Treats (CPT) sells a specialty pet food to pet stores. CPT management prides itself on its scientific management methods. Applying those methods, the controller estimates the following monthly costs based on 10,000 units (produced and sold): Direct material Direct labor Manufacturing overhead Selling, general, and administrative Total Total Annual Costs (10,000 units) $ 118,000 55.000 122,000 95,000 $ 390,000 Required: a. Compute CPT's unit selling price that will yield a profit of $160,000. given sales of 10,000 units. b. What dollar sales does CPT need to achieve to generate a 15 percent profit on sales, assuming variable costs per unit are 55 percent of the selling price per unit and fixed costs are $173.100. c. Management believes that a selling price of $100.00 per unit is reasonable given current market conditions. How many units must CPT sell to generate the revenues (dollar sales) determined in requirement (b)?
Expert Answer:
Answer rating: 100% (QA)
Lets address each requirement step by step a Compute CPTs unit selling price to yield a profit of 16... View the full answer
Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
Posted Date:
Students also viewed these accounting questions
-
1. Touch the pith ball with your hand. Bring an uncharged rod near it. What happens? Now charge the rubber rod and bring it near the pith ball. Explain what happens. Let it touch the ball and bring...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Breed Products has performed extensive studies on its costs and production and estimates the following annual costs based on 150,000 units (produced and sold): Total Annual Costs (150,000 units)...
-
Tabulate the function f(x) = sin x for x = 0.0(0.2)1.6. From this table estimate, by linear interpolation, the value of sin 1.23. Construct a table equivalent to Figure 2.102, and so estimate the...
-
A pipe flow 0.15 lb mol a second mixture with mole fractions of 40% CO2 and 60% N2 at 60 lbf/in 2, 540 R. Heating tape is wrapped around a section of pipe with insulation added and 2 Btu/s electrical...
-
Raymond and Kevin want to purchase a house. They offer $574,000 with 30% down payment. They are pre-qualified for a 30-year loan at 5.7%. Property taxes are estimated to be $4000/year, homeowner's...
-
Describe how partial and circular reasoning can be helpful or harmful in resolving ethical dilemmas.
-
The original STRIPS program was designed to control Shakey the robot Figure shows a version of Shakeys world consisting of four rooms lined up along a corridor, where each room has a door and a light...
-
Mountain Air Limited manufactures a line of room air purifiers. Management is currently evaluating the possible production of an air purifier for automobiles. Based on an annual volume of 1 0 , 0 0 0...
-
On December 1, 2020, Papadopoulos Seasonings had the following account balances. During December, the company completed the following transactions. Dec. 7 Received 3,600 cash from customers in...
-
To provide for his 10-year-old daughter's future education, Dr. Porter transferred a stone sculpture which had a fair market value of $50,000 to her. The lawyer who arranged to transfer title to the...
-
True or False. The term economic investment includes purchases of stocks, bonds, and real estate.
-
Why are price ceilings during a hyperinflation problematic? What generalizations do you draw from Venezuelas economic collapse? Would a Venezuelan-style economic collapse be less likely in the United...
-
True or False. Because price stickiness matters only in the short run, economists are comfortable using just one macroeconomic model for all situations.
-
In 2019, Cabell Mapp passed away in Belle Haven, Virginia. Pursuant to his will, a testamentary trust was established. The trust instrument requires that $10,000 a year be paid to the University of...
-
If the demand for a firms output unexpectedly decreases, you would expect its inventory to: a. increase. b. decrease. c. remain the same. d. increase or remain the same, depending on whether or not...
-
The representation of octal number (532.2)8 in decimal is 346.25 O 532.864 531.334 234.665
-
The following T-accounts show postings of selected transactions. Indicate the journal used in recording each of these postings a through e. Cash Accounts Receivable Inventory (d) 500 (e) 300 (b)...
-
The thing you have to understand is how these stage plays work. You start out with just an idea, but generally no cash. Thats where promoters like me come in. We find ways of raising the money...
-
Northern Switching Ltd. (NSL) is a manufacturer of digital switching equipment and systems. The company has total assets of approximately $784 million. Each of the following events occurred after the...
-
On 1 January 20X2, Lucky Company purchased $5,000,000 of Fire Corp. 3% bonds, classified as a FVTPL. The bonds pay semi-annual interest each 30 June and 31 December. The market interest rate was 4%...
-
Problem Decide whether the sampling method is independent or dependent. Then determine whether the response variable is qualitative or quantitative. (a) Joliet Junior College decided to implement a...
-
Using the data from Table 2, construct a \(95 \%\) confidence interval estimate of the mean difference, \(\mu_{d}\). By Hand Approach Step 1 Compute the differenced data. Because the sample size is...
-
In the Spacelab Life Sciences 2 payload, 14 male rats were sent to space. Upon their return, the red blood cell mass (in milliliters) of the rats was determined. A control group of 14 male rats was...
Study smarter with the SolutionInn App