Werner company produces and sells banking pans to retailers for 2.75 per pan. th

Question

Werner company produces and sells banking pans to retailers for 2.75 per pan. the variable cost per pan is: direct materials 0.37 direct labor 0.63 variable factory overhead 0.53 variable selling expense 0.12 fixed manufacturing costs total 111425 per year. Administrative cost (all fixed) total 48350 Please show work Part 1 Fixed manufacturing costs Fixed administrative costs Total fixed costs Selling price per unit Variable costs per unit Contribution margin per unit Break-even units Part 2 Variable costs per unit Variable manufacturing costs per unit Part 3 Total fixed costs Target operating income Contribution margin per unit Units needed to earn target operating income Part 4 Units needed to earn target profit Selling price per unit Sales revenue needed to earn target operating income

Explanation / Answer

Part 1 Fixed Man. Costs 111425 fix. Admin costs 48350 Total 159775 Part 2 Sp 2.75 Material 0.37 labour 0.63 var. fac. Oh 0.53 var. sell.oh 0.12 1.65 Cont 1.1

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