1. Business
  2. Accounting
  3. nt designs and diane buswell controller at curr composite models...

Question: nt designs and diane buswell controller at curr composite models...

Question details

NT DESIGNS and Diane Buswell, controller at Curr composite models of the kayak division. Th Ball Johnson, sales manager, rent for one of the on sicerational costs necessary to produce one composite kayav proviaeg ming to analyze the cos $250 per kayak $100 per kayak S170 per kayak $420 per kayak $400 per kayąk. $119,000 per year $240,000 per year Resin and supplies Finishing kit (seat, rudder, ropes, etc.) Labor Seling and administrative expenses - variable Selling and administrative expenses-fixed fixed Bill and Diane have asked you to provide a cost-vol the upcoming year t analysis, to help them finalize the budget projections for Bill has informed you that the selling price of the composite kayak will be $2.000. Instructions (a) Calculate variable cost per unit. b) Determine the unit contri c) Using the unit contribution margin, determine etermine n margin ly the break-even point in units for this product ine d) Assume that Current Designs plans to earn $270,000 on this product line. Using the unicbutinn ow act in, calculate the number of units that need to be sold to achieve this goal. marg e) Based on the most recent sales forecast, Current Design plans to sell 1,000 units of this model. NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a Using your results from part (c), calculate the margin of safety and the margin of safety ratio. (a) Calculate variable cost per unit. Valueo Kevlar®
that com. Resin and alue h0 e0 Unit variable cost (c) Using the unit contribution Total fixed costs (a) nt Insight Break-even points (units) (a + b) d) Assume that Current Designs plans to earn $270,000 on this product line. Using the unit margin, calculate the number of units that need to be sold to achieve this goal Total fixed costs Target net income Total fixed costs + target net income (a) Value n margin (b) Units need to be sold (a + b) mpanies, such Value ed less on lar n machines of this apy (e) Based on the most recent sales forecast, Current Design plans to sell 1,000 units of this model.
Actual (expected) sales Break-even sales Margin of safety (dollars) Margin of safety (dollars) (a) Actual (expected) sales (b) Margin of safety ratio (a +b) Value After you have completed CD-5, consider the following additional 1. Assume that the unit selling price per kayak changed to $2,200 each, and fixed manufacturing overhead increased to $360 ,000. Show impact of these changes on calculations nsight ction that in s, such on lar is apy
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution