1 Gonyo Inc which produces and sells a single product has pr

1. Gonyo Inc., which produces and sells a single product, has provided the following contribution format income statement for December appears below:

Redo the company\'s contribution format income statement assuming that the company sells 5,200 units.

1b. The contribution margin ratio of Donath Corporation\'s only product is 65%. The company\'s monthly fixed expense is $455,300 and the company\'s monthly target profit is $41,300.

Determine the dollar sales to attain the company\'s target profit. (Round your answer to the nearest dollar amount.)

1c. Bartelt Inc., which produces a single product, has provided the following data for its most recent month of operations:

There were no beginning or ending inventories. The absorption costing unit product cost was:

1d. Rehmer Corporation is working on its direct labor budget for the next two months. Each unit of output requires 0.04 direct labor-hours. The direct labor rate is $7.50 per direct labor-hour. The production budget calls for producing 5,100 units in June and 5,600 units in July.

Construct the direct labor budget for the next two months, assuming that the direct labor work force is fully adjusted to the total direct labor-hours needed each month. (Round your answers to 2 decimal places.)

1e. A manufacturing company that has only one product has established the following standards for its variable manufacturing overhead. Variable manufacturing overhead standards are based on machine-hours.

Solution

1a.

Number of units sold = 5,000

Sales = $290,000

Hence, selling price per unit = 290,000/5,000

= $58

Total variable expenses of producing 5,000 units = $100,000

Hence, variable cost per unit = 100,000/5,000

= $20

Gonyo , Inc.

Income Statement

1b.

Contribution margin ratio = 65%

Monthly fixed expense = $455,300

Monthly target profit = $41,300

Sales to get desired profit = (Fixed expenses + Target profit)/Contribution margin ratio

= (455,300 + 41,300)/65%

= 496,600/65%

= $764,000

Hence, at $764,000 sales, target profit of $41,300 would be achieved.

1c.

Bartelt Inc.

Cost sheet

Cost per unit = Total cost/Number of units produced

= 2,746,200/6,900

= $398

1d.

Rehmar Corporation

Direct labor budget