Communication Corp. produces and sells 4 models of mobile phones with different features which are coded...

 

Transcribed Image Text:

Communication Corp. produces and sells 4 models of mobile phones with different features which are coded as TEL1, TEL2, TEL3 and TEL4. Sale prices of the phones are respectively $180, $500, $320 and $175. Production capacity of the business is respectively 60.000 pcs/year, 30.000 pcs/year, 15.000 pcs/year and 45.000 pcs/year. Fixed costs total for the current year are $9.222.400 and are allocated to the goods by their revenues. Cost assumption for the goods is as follows: TELI TEL2 TEL3 TEL4 Direct Material $28 $140 $28 $38 Direct Labor $16 $110 $16 $24 Variable Man.Ov.. $10 $75 $4 $8 Compute: 1. Average contribution margin of the sale mix. 2. Breakeven Point of sale mix. 3. Sale quantities and total amounts of each model of phone at the BEP. 4. The amount of the profit if the budgeted sales are realized. 5. The sale price of each phone model in order to get a profit of $16.715.600. 6. Draw the profit chart based on 5. question results. Communication Corp. produces and sells 4 models of mobile phones with different features which are coded as TEL1, TEL2, TEL3 and TEL4. Sale prices of the phones are respectively $180, $500, $320 and $175. Production capacity of the business is respectively 60.000 pcs/year, 30.000 pcs/year, 15.000 pcs/year and 45.000 pcs/year. Fixed costs total for the current year are $9.222.400 and are allocated to the goods by their revenues. Cost assumption for the goods is as follows: TELI TEL2 TEL3 TEL4 Direct Material $28 $140 $28 $38 Direct Labor $16 $110 $16 $24 Variable Man.Ov.. $10 $75 $4 $8 Compute: 1. Average contribution margin of the sale mix. 2. Breakeven Point of sale mix. 3. Sale quantities and total amounts of each model of phone at the BEP. 4. The amount of the profit if the budgeted sales are realized. 5. The sale price of each phone model in order to get a profit of $16.715.600. 6. Draw the profit chart based on 5. question results.

Answer rating: 100% (QA)

Answer a To prepare the journal entry to record bad debt expense at yearend December 31 2015 using t... View the full answer