Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed...

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Accounting

Ferkil Corporation manufacturers a single product that has aselling price of $20.00 per unit. Fixed expenses total $63,000 peryear, and the company must sell 9,000 units to break even. If thecompany has a target profit of $17,500, sales in units mustbe:
Multiple Choice
•   10,682 units
•   9,875 units
•   11,500 units
•   12,150 units


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Data concerning Bedwell Enterprises Corporation's single productappear below:

         
Selling price per unit   $   180.00
Variable expenses per unit   $   93.50
Fixed expense per month   $   435,690


The unit sales to attain the company's monthly target profit of$23,000 is closest to: (Do not round intermediatecalculations.)

Garrison 16e Rechecks 2018-06-19
Multiple Choice
•   5,037
•   2,548
•   4,906
•   5,303


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Aaron Corporation, which has only one product, has provided thefollowing data concerning its most recent month ofoperations:

         
Selling price   $   95
         
Units in beginning inventory      0
Units produced      3,400
Units sold      3,030
Units in ending inventory      370


         
Variable costs per unit:       
Direct materials   $   20
Direct labor   $   34
Variable manufacturing overhead   $   6
Variable selling and administrative expense  $   4
Fixed costs:        
Fixed manufacturing overhead   $   64,700
Fixed selling and administrative expense   $  2,800


The total contribution margin for the month under variable costingis:
Multiple Choice
•   $26,430
•   $93,930
•   $29,230
•   $106,050
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Gabuat Corporation, which has only one product, has provided thefollowing data concerning its most recent month ofoperations:

         
Selling price   $   135
         
Units in beginning inventory      0
Units produced      3,200
Units sold      2,660
Units in ending inventory      540


         
Variable costs per unit:       
Direct materials   $   53
Direct labor   $   23
Variable manufacturing overhead   $   7
Variable selling and administrative expense  $   8
Fixed costs:        
Fixed manufacturing overhead   $   41,600
Fixed selling and administrative expense   $  26,600


The total gross margin for the month under the absorption costingapproach is:
Multiple Choice
•   $77,140
•   $103,740
•   $82,460
•   $159,600

Answer & Explanation Solved by verified expert
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Solution 1 Contribution margin per unit Fixed cost breakeven sales 63000 9000 7 per unit Nos of sales units to earn target profit Fixed cost Target profit contribution margin per unit 63000 17500 7 11500    See Answer
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