1. During its first year of operations, Farmer Company paid $55,000 for direct m
ID: 2419341 • Letter: 1
Question
1. During its first year of operations, Farmer Company paid $55,000 for direct materials and $51,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $14,000. General, selling, and administrative expenses were $21,000. The average cost to produce one unit was $6.00. How many units were produced during the period?
21,167
20,000
23,500
None of these
2. During its first year of operations, Silver Company paid $12,385 for direct materials and $10,600 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,600 while general, selling, and administrative expenses totaled $3,900. The company produced 6,650 units and sold 4,100 units at a price of $7.40 a unit.
What is the amount of gross margin for the first year?
$12,495
$7,355
$ 30,340
$10,250
3.
For 2013, Bayside Corporation sold 180,000 units of its product for $30 each. The variable cost per unit was $25, and Bayside's margin of safety was 50,000 units. What was the amount of Bayside's total fixed costs?
$1,250,000
$650,000
$4,500,000
$900,000
4.
A market research specialist told Peachtree Company that it could expect to sell 590,000 units of its new high-capacity computer disk at a price of $25. Assuming the company desires a profit margin equal to 15% of sales, what target cost per unit is necessary?
$25.00
$21.25
$3.75
None of these
Explanation / Answer
During its first year of operations, Farmer Company paid $55,000 for direct materials and $51,000 in wages for production workers. Lease payments, utility costs, and depreciation on factory equipment totaled $14,000. General, selling, and administrative expenses were $21,000. The average cost to produce one unit was $6.00. How many units were produced during the period?
During its first year of operations, Silver Company paid $12,385 for direct materials and $10,600 for production workers' wages. Lease payments and utilities on the production facilities amounted to $9,600 while general, selling, and administrative expenses totaled $3,900. The company produced 6,650 units and sold 4,100 units at a price of $7.40 a unit.
What is the amount of gross margin for the first year?
For 2013, Bayside Corporation sold 180,000 units of its product for $30 each. The variable cost per unit was $25, and Bayside's margin of safety was 50,000 units. What was the amount of Bayside's total fixed costs?
A market research specialist told Peachtree Company that it could expect to sell 590,000 units of its new high-capacity computer disk at a price of $25. Assuming the company desires a profit margin equal to 15% of sales, what target cost per unit is necessary?
=25*(100%-15)=25*.85 =21.25
direct materials 55000 wages for production workers 51000 Lease payments, utility costs, and depreciation on factory equipment totaled 14000 Cost of Goods produced 120000 average cost to produce 6 No unit Produced 120000/6 20000Related Questions
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