Required: a) Using the equation method, calculate the number of uni b) How would your error affect breakeven sales, margin of s sales commission plan? (Present ALL relevant scenar c) After considering all factors, should you inform your man. quiet?
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- The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express the companys maintenance costs as an equation where x represents the gallons of paint produced. Then estimate the fixed and variable costs. Predict the maintenance costs i190,000 gallons of paint are produced. Predict the maintenance costs if 81,000 gallons of paint are produced. Using Excel, create a scatter graph of the cost data and explain the relationship between gallons of paint produced and equipment maintenance expenses.Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…
- Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…
- Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows:Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows: Variable expenses per unit: Direct Material $20Direct Labour $50Variable Manufacturing Overhead $10Fixed expenses: Fixed Manufacturing Overhead $125,000Fixed Selling Costs $75,000Fixed Administrative Costs $100,000 You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a commission to its sales team as part of the sales expansion effort, whichshould result in an increase in sales revenue. The head of the marketing department has indicated that theeffort of the sales team should…Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valenciais under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costswere as follows:Variable expenses per unit: Direct Material $40Direct Labour $32Variable Manufacturing Overhead $18Fixed expenses: Fixed Manufacturing Overhead $190,000Fixed Selling Costs $115,000Fixed Administrative Costs $135,000Required:(a) Using the equation method, calculate the number of units sold in 2018. (b) Given the sales units calculated in Part (a), prepare a contribution margin income statement for theyear ended December 31, 2018, detailing the composition of total fixed costs and clearly showingcontribution and net income. (c) Calculate Valencia’s break-even point in units and in sales dollars. (d) Calculate the margin of safety in units and in sales dollars.
- Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows: Variable expense per unit: Direct Material $20 Direct Labour $50 Variable maufacturing overhead $10 Fixed Expenses: Fixed manufacturing overhead $125000 Fixed selling cost $75000 Fixed administrative cost $100000 You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe business is considering paying a…Darius Manufacturing Company manufactures and sells parts for various musical gadgets. The businessearned Operating Income of $420,000 in 2018, when selling price per unit was $200 and the president ofDarius is under pressure to increase operating income in 2019 and is therefore considering the implementationof strategies geared at increasing revenues. Data for variable cost per unit and total fixed costs were asfollows: Variable expenses per unit: Direct Material $20 Direct Labour $50 Variable Manufacturing Overhead $10 Fixed expenses: Fixed Manufacturing Overhead $125,000 Fixed selling costs $75,000 Fixed administrative costs $100,000 You have just begun your internship at the company. The financial controller, Dave Miller, has indicated thatthe…Valencia Manufacturing Company manufactures and sells musical gadgets. The business earnedOperating Income of $220,000 in 2018, when selling price per unit was $200, and the president of Valenciais under pressure to increase operating income in 2019. Data for variable cost per unit and total fixed costswere as follows:Variable expenses per unit: Direct Material $40Direct Labour $32Variable Manufacturing Overhead $18Fixed expenses: Fixed Manufacturing Overhead $190,000Fixed Selling Costs $115,000Fixed Administrative Costs $135,000Required:(e) The management of Valencia Manufacturing Company is desirous of increasing operating income by 20% in 2019. They expect per unit data and total fixed costs to remain the same in 2018. Determine the number of units that must be sold to earn this target operating profit. Is this a realisticgoal?