Watson Company has monthly fixed costs of 77000 and a 50 con

Watson Company has monthly fixed costs of $77,000 and a 50% contribution margin ratio. If the company has set a target monthly income of $14,400, what dollar amount of sales must be made to produce the target income?

Multiple Choice

$182,800

$154,000

$28,800

$125,200

$91,400

A manufacturer reports the following costs to produce 12,000 units in its first year of operations: Direct materials, $12 per unit, Direct labor, $8 per unit, Variable overhead, $84,000, and Fixed overhead, $120,000. The total product cost per unit under absorption costing is:

Multiple Choice

$30 per unit.

$27 per unit.

$20 per unit.

$37 per unit.

$19 per unit.

Barclay Enterprises manufactures and sells three distinct styles of bicycles: the Youth model sells for $480 and has a unit contribution margin of $288; the Adult model sells for $940 and has a unit contribution margin of $564; and the Recreational model sells for $1,160 and has a unit contribution margin of $696. The company\'s sales mix includes: 5 Youth models; 9 Adult models; and 6 Recreational models. If the firm\'s annual fixed costs total $8,340,000, calculate the firm\'s break-even point in total sales dollars.

Multiple Choice

$13,674,071.

$13,900,000.

$13,415,584.

$14,384,416.

$13,417,163.

Solution

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Fixed costs         77,000.00 Desired net income         14,400.00 Desired contribution         91,400.00 Contribution margin ratio 50% Desired sales       182,800.00 Q2 Direct materials per unit                 12.00 Direct labour per unit                    8.00 Variable overhead per unit = 84000/12000                    7.00 Fixed overhead per unit = 120,000/12000                 10.00 total product cost per unit                 37.00