#13 Right Air Supply sells a specialized air filter that has a variable cost of
ID: 2578522 • Letter: #
Question
#13 Right Air Supply sells a specialized air filter that has a variable cost of $10 each. Fixed costs are estimated to be $700,000 across all levels of sales shown below. Units Sold Unit Price CM per unit x Qty Fixed Costs Profit 90,000 $33 700,000 100,000 $31 700,000 110,000 $30 700,000 120,000 $28 700,000 Which price should Right Air Supply charge to maximize profits? #14 Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the company’s margin of safety? #15 Roger Excavating Company experienced the following costs in 2016: Direct materials $1.75 per unit Direct labor $2.00 per unit Variable manufacturing overhead $2.50 per unit Variable selling $0.75 per unit Fixed manufacturing overhead $50,000 Fixed selling $15,000 Fixed administrative $5,000 During 2016, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the company’s contribution margin per unit? #13 Right Air Supply sells a specialized air filter that has a variable cost of $10 each. Fixed costs are estimated to be $700,000 across all levels of sales shown below. Units Sold Unit Price CM per unit x Qty Fixed Costs Profit 90,000 $33 700,000 100,000 $31 700,000 110,000 $30 700,000 120,000 $28 700,000 Which price should Right Air Supply charge to maximize profits? #14 Randolph Corporation sells a single product at a price of $275 per unit. Variable cost per unit is $135 and fixed costs total $356,860. If sales are expected to be $825,000, what is the company’s margin of safety? #15 Roger Excavating Company experienced the following costs in 2016: Direct materials $1.75 per unit Direct labor $2.00 per unit Variable manufacturing overhead $2.50 per unit Variable selling $0.75 per unit Fixed manufacturing overhead $50,000 Fixed selling $15,000 Fixed administrative $5,000 During 2016, the company manufactured 100,000 units and sold 80,000 units. If the average selling price per unit was $22.65, what is the amount of the company’s contribution margin per unit?Explanation / Answer
Which price should Right Air Supply charge to maximize profits?
Price 30 is given maximize profit...
Unit Price Cm*Qty Fixed cost Profit 90000 33 2070000 700000 1370000 100000 31 2100000 700000 1400000 110000 30 2200000 700000 1500000 120000 28 2160000 700000 1460000Related Questions
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