I need detailed help with steps on how to solve: Smoothlt Inc is facing a problem with their 4th quarter absorption costing net operating income on December 23rd. The net operating income target is $2,000,000 and the data so far is as follows: Sales Revenue: $25,000,000 ($500 per unit) Variable Cost of Goods Sold: $10,000,000 ($200 per unit) Fixed Overhead : $12,000,000 Fixed Selling and Adminstrative : $2,000,000 Variable Selling and Admin : 4% commission on sales Smoothlt has a policy of having 0 inventories at the end of each quarter. No further sales are possible during the year and all the units that have been produced so far have been sold. The CEO is planning to produce items for inventory to meet net operating income target . Question: How many units need to be produced for inventory to meet net operating income target if sales commission is left unchanged at 4% ? A) 4,054 B) 30,000 C) 10,000 D) 15,000 E) None Thanks! Training

I need detailed help with steps on how to solve: Smoothlt Inc is facing a problem with their 4th quarter absorption costing net operating income on December 23rd. The net operating income target is $2,000,000 and the data so far is as follows: Sales Revenue: $25,000,000 ($500 per unit) Variable Cost of Goods Sold: $10,000,000 ($200 per unit) Fixed Overhead : $12,000,000 Fixed Selling and Adminstrative : $2,000,000 Variable Selling and Admin : 4% commission on sales Smoothlt has a policy of having 0 inventories at the end of each quarter. No further sales are possible during the year and all the units that have been produced so far have been sold. The CEO is planning to produce items for inventory to meet net operating income target . Question: How many units need to be produced for inventory to meet net operating income target if sales commission is left unchanged at 4% ? A) 4,054 B) 30,000 C) 10,000 D) 15,000 E) None Thanks! Training

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter3: Cost Behavior And Cost Forecasting

Section: Chapter Questions

Problem 54E: Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects...

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Pattison Products, Inc., began operations in October and manufactured 40,000 units during the month with the following unit costs: Fixed overhead per unit = 280,000/40,000 units produced = 7. Total fixed factory overhead is 280,000 per month. During October, 38,400 units were sold at a price of 24, and fixed marketing and administrative expenses were 130,500. Required: 1. Calculate the cost of each unit using absorption costing. 2. How many units remain in ending inventory? What is the cost of ending inventory using absorption costing? 3. Prepare an absorption-costing income statement for Pattison Products, Inc., for the month of October. 4. What if November production was 40,000 units, costs were stable, and sales were 41,000 units? What is the cost of ending inventory? What is operating income for November?
Income Statements under Absorption and Variable Costing In the coming year, Kalling Company expects to sell 28,700 units at 32 each. Kallings controller provided the following information for the coming year: Required: 1. Calculate the cost of one unit of product under absorption costing. 2. Calculate the cost of one unit of product under variable costing. 3. Calculate operating income under absorption costing for next year. 4. Calculate operating income under variable costing for next year.
The expected costs for the Maintenance Department of Stazler, Inc., for the coming year include: Fixed costs (salaries, tools): 64,900 per year Variable costs (supplies): 1.35 per maintenance hour Estimated usage by: Actual usage by: Required: 1. Calculate a single charging rate for the Maintenance Department. 2. Use this rate to assign the costs of the Maintenance Department to the user departments based on actual usage. Calculate the total amount charged for maintenance for the year. 3. What if the Assembly Department used 4,000 maintenance hours in the year? How much would have been charged out to the three departments?
Western Trucking operates a fleet of delivery trucks. The fixed expenses to operate the fleet are $79,900 in March and rose to $93,120 in April. It costs Western Trucking $0.15 per mile in variable costs. In March, the delivery trucks were driven a total of 85,000 miles, and in April,. they were driven a total of 96,000 miles. Using this information, answer the following: A. What were the total costs to operate the fleet in March and April, respectively? B. What were the cost per mile to operate the fleet in March and April, respectively?
Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90. The companys monthly fixed expenses are $180,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of October when they will sell 10,000 units. How many units will Cadre need to sell in order to realize a target profit of $300,000? What dollar sales will Cadre need to generate in order to realize a target profit of $300,000? Construct a contribution margin income statement for the month of August that reflects $2,400,000 in sales revenue for Cadre, Inc.
Using the information in the previous exercises about Marleys Manufacturing, determine the operating income for department B, assuming department A sold department B 1,000 units during the month and department A reduces the selling price to the market price.
The following information pertains to Vladamir, Inc., for last year: There are no work-in-process inventories. Normal activity is 100,000 units. Expected and actual overhead costs are the same. Costs have not changed from one year to the next. Required: 1. How many units are in ending inventory? 2. Without preparing an income statement, indicate what the difference will be between variable-costing income and absorption-costing income. 3. Assume the selling price per unit is 29. Prepare an income statement using (a) variable costing and (b) absorption costing.
Kerr Manufacturing sells a single product with a selling price of $600 with variable costs per unit of $360. The companys monthly fixed expenses are $72,000. What is the companys break-even point in units? What is the companys break-even point in dollars? Prepare a contribution margin income statement for the month of January when they will sell 500 units. How many units will Kerr need to sell in order to realize a target profit of $120,000? What dollar sales will Kerr need to generate in order to realize a target profit of $120,000? Construct a contribution margin income statement for the month of June that reflects $600,000 in sales revenue for Kerr Manufacturing.
A week before the end of Its fiscal year, a company forecasts that It will not meet its target net operating income of $1,000,000 for the year (based on absorption costing). Forecast data is as follows: Sales Revenue Variable COGS Fixed manufacturing overhead Variable S&A: Commission on Sales Fixed S&A $200/unit $80/unit $10,000,000 $4,000,000 $5,000,000 3% $100,000 1:44 In the past, the company has had a policy of having zero inventories at the end of each period. For the current year, no further sales are possible and all of the units produced so far have been sold. The CEO has decided to produce additional units for Inventory in the last week of the year in order to meet the Income target. How many additional units (nearest whole number) need to be produced for inventory in the last week of the year in order to meet the net operating Income target if the sales commission is left unchanged at 3%? O 50,000 O 3,191 O 54,348 O 4,348
Given the following cost and activity observations for Smithson Company's utilities, use the high-low method to determine Smithson's fixed costs per month. Round your final answer to the nearest dollar. Do not round interim calculations. Cost January $26,800 February 38,500 March 28,200 April 30,800 a. $23,329 Ob. $10,978 Oc. $43,914 Od. $13,723 Machine Hours 9,500 18,000 11,700 15,400 ?
Current Atter Crane Company sells its product for $5600 per unit. Variable costs per unit are: manufacturing, $2600, and selling and administrative, $25. Fixed costs are: $18000 manufacturing overhead, and $24000 selling and administrative. There was no beginning inventory at 1/1/18. Production was 20 units per year in 2018-2020. Sales were 20 units in 2018, 16 units in 2019, and 24 units in 2020. Income under variable costing for 2020 is O $21000. O $29400. O $25650. O $25800.
Data below relate to the Tori Company for May and August of the current year: May 35,000 Maintenance hours Maintenance cost $ 1,247,000 August 40,000 $ 1,337,000 May and August were the lowest and highest activity levels, and Tori uses the high-low method to analyze cost behavior. Which of the following statements is true? Multiple Choice The variable maintenance cost is $18 per hour The variable maintenance cost is $20 per hour The variable maintenance cost is $22 per hour