I want steps Solution all questions 9,10,11,13,14 with when you can find the Num

Question

I want steps Solution all questions 9,10,11,13,14 with when you can find the Number The following information applies to the questions displayed below Diego Company manufactures one product that is sold for $80 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations In which t produced 40,000 unilts and sold 35,000 units Varlable costs per unit: Manufacturing $ 24 $14 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Flxed costs per year Flxed manufacturing overhead s 800,000 496,000 Fixed selling and administrative expenses $ The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its fixed selling and administrative expenses is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96.000 is a common fixed cost. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product

Explanation / Answer

9) Even the sales volumes are reversed , the fixed costs remains same

Contribution per unit = 80-24-12-2-4

= 36

Break even point = total fixed cost / contribution per unit

= ( 800000+496000) / 36

= 36000 units

10) variable costing net operating income( loss)

production units 35000 units

sales units 35000 units

selling price $80

less: variable costs

material 24

labour 12

manufacturing overhead 2

selling overhead 4

contribution per unit 36

total consribution 35000*36 $1260000

less: fixed costs

manufacturing overheads $ 800000

selling & admin overheads $ 496000

net operating loss ( 36000)

Absorption costing net operating income/loss

sales (35000* 80) 2800000

less: cost of goods sold

material (35000*24) 840000

labour (35000*14) 490000

variable manufacturing overhead (35000*2) 70000

fixed manufacturting overhead 800000

Gross profit 600000

less : selling & admin expenses

variable ( 35000*4) 140000

fixed 496000

net operating loss (36000)

note: it is assumed that normal production is35000 units , if it is 40000 units there will be proft of 64000, as the manufacturing overhead will be absorbed only to the extent of 700000 (800000/40000 *35000units)

13)

14) existing sales in east region = 25000units

increased sales in year 2 = 25000*1.02

= 25500 units

contribution (25500*36) = $918000

less: fixed costs (800000+150000+96000) = $ 1046000

  

net operating loss = (128000)

particulars total east west units sold 35000 25000 10000 total conributation @ 36 per unit 1260000 900000 360000 less tracable fixed costs 400000 150000 250000 segment margin 860000 750000 110000 common fixed costs(800000+96000) 896000 - - operating loss 36000

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