On Time Products produced and sold digital date books during the year just ended at an average price of $20 per unit.Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold.Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing.There was no year-end work-in-process inventory.(Ignore taxes.) Required: 1.Compute On Time's breakeven point in sales dollars for the year. 2.Compute the number of sales units required to earn a net income of $180,000 during the year. 3.On Time's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the ﬁrm's breakeven point in sales dollars for the coming year. 4.If On Time's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.

Question

Quizplus · Accepted Answer

The Answer of On Time Products produced and sold digital date books during the year just ended at an average price of $20 per unit.Variable manufacturing costs were $8 per unit, and variable marketing costs were $4 per unit sold.Fixed costs amounted to $180,000 for manufacturing and $72,000 for marketing.There was no year-end work-in-process inventory.(Ignore taxes.) Required: 1.Compute On Time's breakeven point in sales dollars for the year. 2.Compute the number of sales units required to earn a net income of $180,000 during the year. 3.On Time's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the ﬁrm's breakeven point in sales dollars for the coming year. 4.If On Time's variable manufacturing costs do increase by 10 percent, compute the selling price that would yield the same contribution-margin ratio in the coming year.

On Time Products Produced and Sold Digital Date Books During