9. The Bikini company decided to adopt a different approach to manage the production and selling plans for the upcoming years. It decided therefore to calculate the Break-Even Point. Before starting the calculations, some estimations were revised and they are now as follows: Unitary selling price: 45/u Direct material per swimsuit: 7 €/u Direct labour per swimsuit: 4 €/u Variable overhead per swimsuit: 2 €/u Total fixed factory overhead: 15.000 € Variable selling commission per swimsuit: 2 €/u Fixed selling and administrative expenses: 30.000€ Given this information: ? BEP: 2000u OBEP: 1407u OBEP: 1500u ? ???: 1000?
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Contribution margin per unit = Unitary selling price - Direct material per swimsuit - Direct labour per swimsuit - Variable overhead per swimsuit - Variable selling commission per swimsuit Contribution margin per unit = 45 - 7 - 4 - 2 - 2 = 30€ Show more…
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Sri K.
Candice Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs for each of the two methods are shown next. Capital Intensive Labor Intensive Raw materials $5.00 $5.60 Direct labor 0.5 DLH @ $12 0.8 DLH @ $9 Variable overhead 0.5 DLH @ $6 0.8 DLH @ $6 Directly traceable incremental fixed manufacturing costs $2,440,000 $1,320,000 *DLH = direct labor hour Candice's market research department has recommended an introductory unit sales price of $30. The incremental selling expenses are estimated to be $500,000 annually plus $2 for each unit sold regardless of the manufacturing method used. Required: Calculate the estimated break-even point in annual unit sales of the new product if Candice Company uses the capital-intensive manufacturing method and labor-intensive manufacturing method. Determine the annual unit sales volume at which Candice Company would be indifferent between the two manufacturing methods.
Akash M.
Department J had no work in process at the beginning of the period. 18,000 units were completed during the period. 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period (Assuming the company uses FIFO): Direct materials (20,000 at P4) P80,000. Direct labor P102,300. Factory overhead P37,200. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the departmental work in process inventory at the end of the period? a. P4,500 b. P23,000 c. P6,900 d. P12,500. Assuming that all direct materials are placed in process at the beginning of production, what is the total cost of the 18,000 units completed during the period? a. P139,500 b. P219,500 c. P80,000 d. P207,000.
Adi S.
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