HW

Author:

October 20th, 2022

	Snail Extraction	Serving
	Tools	Pieces	Total
Sales	$1,200,000	$800,000	$2,000,000
Less cost of goods sold	700,000	500,000	1,200,000
Contribution margin	500,000	300,000	800,000
Less direct fixed costs:
Salaries	175,000	175,000	350,000
Other	60,000	60,000	120,000
Less allocated fixed costs:
Rent	14,118	9,882	24,000
Insurance	3,529	2,471	6,000
Cleaning	4,117	2,883	7,000
Executive salary	76,470	53,530	130,000
Other	7,058	4,942	12,000
Total costs	340,292	308,708	649,000
Net income	($159,708)	($8,708)	$151,000

Question 2.

Question 3.

Question 4.

Revenue	$450,000
Less:
Material Cost	$60,000
Labor	100,000
Depreciation	110,000
Other	10,000	280,000
Income before taxes		170,000
Taxes at 40%		68,000
Net Income	$102,000

Question 5.

Units produced	20,000
Units sold	17,000
Selling price per unit	$30
Direct material per unit	$5
Direct labor per unit	$5
Variable manufacturing overhead per unit	$2
Variable selling cost per unit	$3
Annual fixed manufacturing overhead	$160,000
Annual fixed selling and administrative expense	$80,000

Question 6.

	Per Unit	Total
Direct Materials	$2.00
Direct Labor	$1.50
Variable Manufacturing Overhead	$1.00
Fixed Manufacturing Overhead		$100,000
Variable Selling and Administrative Expense	$0.10
Fixed Selling and Administrative Expense		$100,000

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