(TCO 6) T-Tunes, Inc. is considering the introduction of a new music player with the following price and cost characteristics
1. (TCO 6) T-Tunes, Inc. is considering the introduction of a new music player with the following priceand cost characteristics:
Sales price per unit: $125
Variable cost per unit: $75
Annual fixed costs: $180,000
(a) How many units must T-Tunes sell to break even?
(b) How many units must T-Tunes sell to make an operating profit of $120,000 for the year?
(c) What will the operating profit be, assuming that the projected sales for the year are 7,500 units?
Consider requirements (b) and (c) independent of each other. (Points : 30)
Question 2. 2. (TCO 4) Kramer Company has decided to use a predetermined rate to assign factory overhead toproduction. The following predictions have been made for 2010:
Compute the predetermined factory overhead rate under three different bases: (1) direct labor hours, (2) directlabor costs, and (3) machine hours.
(Points : 30)
Question 3. 3. (TCO 1) The Boyceville Machining Company provided you with the following information forthe fiscal year ending on December 31:
(a) Compute the total manufacturing costs incurred during the year.
(Points : 30)
Question 4. 4. (TCO 5) The following information relates to a product produced by Bayfield Company:
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(TCO 3) Managers are often required to make decisions about the future based