A.

Contribution Margin per Unit:$____________

Sale0 Price per unit
Less: Variable cost per unit
Contribution Margin Per Unit

B.

212.00
128.00
84.00

Number of units that must be sold to break even

Total Fixed Cost
Divide: Contribution Margin Per Unit
Break even in Unit

C.

468,000.00
84.00
5,571

Dollar sales volume to produce income of $864,000 before taxes

Targeted Profit
Total Fixed cost
Contribution Margin
Contribution Margin Ratio
Total Targeted Sales

864,000.00
468,000.00
1,332,000.00
0.66
$ 2,018,181.82

a) Value Added Activities are:

Assembly
Painting
Packaging
b) Total Cycle Time = 12 + 14 + 8 + 6 + 8 + 4
Total Cycle Time

52.00

c) Manufacturing Efficiency Ratio = Value Added time / Manufacturing Cycle Time

Manufacturing Efficiency Ratio = (8 + 8 + 4) / 52
Manufacturing Efficiency Ratio

38.46%

a) Direct Materials Cost per equivalent unit = Direct Materials / Equivalent Units
Direct Materials Cost per equivalent unit = $66,600 / 15000
Direct Materials Cost per equivale $
4.44
b) Calculation of Equivalent Units:
Particulars

Materials

Completed & Transferred

Ending Inventory

10,000.00
5000.00
15000.00

Equivalent Units

10,000.00
5000.00

15000.00

c) Direct Labor Cost per equivalent unit = Direct Labor cost/ Equivalent Units
Direct Labor Cost per equivalent unit = $99120 / 14000
Direct Labor Cost per equivalent $

7.08

d) ManufacturingOverhead per equivalent unit = Manufacturing Overhead/ Equivalent Units

Manufacturing Overhead per equivalent unit = $142,800 / 14000
Manufacturing Overhead per equi $
10.20
e) Total Cost of 10,000 units completed
Direct Materials Per EU
Direct Labor Per EU
Manufacturing Overhead Per EU
Sub Total
Completed and Transferred
Total Cost

$
$
$
$
$

4.44
7.08
10.20
21.72
10000
217,200.00

f) Total Cost of 5,000 units

Direct Materials
Direct Labor Cost
Manufacturing Overhead
Total Cost

22,200.00
28,320.00
40,800.00
91,320.00

Labor & OH
10,000.00
4000.00

14000.00