GHI Company produces a single product. During the year just ended, the company's net operating income under absorptions costing was Php3,000 lower than under variable costing. The company sold 9,000 units during the year, and its variable costs were Php9 per unit, of which Php3 was variable selling expense. If production cost is Php11 per unit under absorption costing every year, then how many units did the company produce during the year?

GHI Company produces a single product. During the year just ended, the company's net operating income under absorptions costing was Php3,000 lower than under variable costing. The company sold 9,000 units during the year, and its variable costs were Php9 per unit, of which Php3 was variable selling expense. If production cost is Php11 per unit under absorption costing every year, then how many units did the company produce during the year?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter3: Cost Behavior

Section: Chapter Questions

Problem 26E: Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings...

See similar textbooks

Similar questions

Faldo Company produces a single product. The projected income statement for the coming year, based on sales of 200,000 units, is as follows: Required: 1. Compute the unit contribution margin and the units that must be sold to break even. Suppose that 30,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the break-even point in dollars. Suppose that revenues are 200,000 greater than expected. What would the total profit be? 3. Compute the margin of safety in sales revenue. 4. Compute the operating leverage. Compute the new profit level if sales are 20 percent higher than expected. 5. How many units must be sold to earn a profit equal to 10 percent of sales? 6. Assume the income tax rate is 40 percent. How many units must be sold to earn an after-tax profit of 180,000?
Starling Co. manufactures one product with a selling price of 18 and variable cost of 12. Starlings total annual fixed costs are 38,400. If operating income last year was 28,800, what was the number of units Starling sold? a. 4,800 b. 6,400 c. 5,600 d. 11,200
Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of $30. The companys monthly fixed expenses are $22,500. What is the companys break-even point in units? What is the companys break-even point in dollars? Construct a contribution margin income statement for the month of September when they will sell 900 units. How many units will Maple need to sell in order to reach a target profit of $45,000? What dollar sales will Maple need in order to reach a target profit of $45,000? Construct a contribution margin income statement for Maple that reflects $150,000 in sales volume.
White Lake Inc. produces and sells a single product. Data concerning that product appear below: Selling price per unit $ 230.00 Variable expense per unit $ 103.50 Fixed expense per month $ 518,650 Required: a. What is the minimum amount of sales revenues in dollars to break even? b. Assume the company's monthly target profit is $12,650. Determine the number of units that White Lake needs to sell to attain this target profit?
The company produced 500 boxes during the year. Variable selling and administrative expenses are P0.90 per box unit. Variable manufacturing costs are P5.25 per box and fixed manufacturing overhead costs total P1,375 for the year. What is the company’s direct costing profit? P2,540 P2,265 P1,000 P725
A company produces and sells a product. The unit variable cost is $42.44 and the unit selling price is $88.20. The fixed cost associated with the product is $149,856 per year. The company has an income tax rate of 25.19 percent. The company must produce and sell units per year in order to reach breakeven.
Last month the Blank Inc. had sales of 5,000 units sold for P40 each. The total variable expenses were P120,000, and fixed costs were P65,000. Required: a. What is the company’s contribution margin (CM) ratio? b. Estimate the change in the company’s net operating income if it were to increase its total sales by P8,000.
Sunshine Company’s single product has a selling price of P25 per unit. Last year the company reported a profit of P20,000 and variable expenses totaling P180,000. The product has a 40% contribution ratio. Because of competition, Sunshine Company will be forced in the current year to reduce its selling price by P2 per unit. How many units must be sold in the current year to earn the same profit as was earned last year? (Hint: Prepare last year’s income statement, then, prepare the current year using the new price) 15,000 units 12,000 units 16,500 units 12,960 units Group of answer choices 1 2 3 4
Yambs Company manufactures and sells a single product. Following data were given: Sales (15,000 units) 600,000.00 Less: Variable Cost 420,000.00 Contribution Margin 180,000.00 Less: Fixed Cost 150,000.00 Profit 30,000.00 Required: Determine the following: Selling Price per Unit Variable Cost per Unit c. CM Ratio What is the monthly break-even point in units sold and in sales pesos? Without doing computations, what is the total contribution margin at BEP? Prove that CMRxMSR=NPR Barack Co. BEP in sales are P528,000. The variable cost to sales is 60%, while the profit ratio is 8% Determine the following: Fixed cost 2. Actual Sales 3. Profit 4. Margin of Safety 5. Margin of Safety Ratio Mahjong Co. produces and sells two products, tables and chairs. Following is next month’s income budget Sales in units Chairs Tables Total 600 150 750 Sales P 1,200.00 P…
Alder Inc. produced and sold 2,000 units of one product during the year. The company's net income was $40,000, its fixed cost per unit was $60, and the variable cost ratio was .25. What must the company's sales revenue be if it wants to earn $50,000 next year? $192,000 O $208,000 $226,667 $211,111 None of the above
Kerr Manufacturing sells a single product with a selling price of S600 with variable costs per unit of $360. The company's monthly fixed expenses are S72,000. A. What is the company's break-even point in units? B. What is the company's break-even point in dollars?
During the Year the total marbles sold by AMP Ltd. are 6,000 and Profit at this level of Sales is $ 20,000. The Margin of Safety Sales is $ 60,000. The total Fixed Expenses for the year is one-third of the year's Break Even Sales. Find out the Total Variable Cost and Variable Cost per unit if the Selling Price is $ 30.00 per marble. Variable Cost = $ 120,000 ; Variable Cost per unit = $ 20.00 Variable Cost = $ 114,000 ; Variable Cost per unit = $ 19.00 Variable Cost = $ 111,000 ; Variable Cost per unit = $ 18.50 O Variable Cost = $ 117,000 ; Variable Cost per unit = $ 19.50