spring 15 Problem 1 JK Corporation JK Corporation plans to manufacture industria
ID: 2382445 • Letter: S
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spring 15 Problem 1 JK Corporation JK Corporation plans to manufacture industrial fan motors. The company is considering two alternative production lines depending on the number of units they decide to manufacture per month. Financial data for these manufacturing options are as follows: Units Produced per month 750 650 Selling Price per unit $3,211 $2,356 Direct Labor cost per unit $411.11 $363.36 Direct Materials cost per unit $294.76 $323.23 Other Manufacturing Costs Variable Overhead per unit $210.05 $291.67 Monthly Mfg Overhead Costs $199,987 $192,340 Selling, General & Admin Expenses Variable SG&A per unit $69.95 $80.61 Monthly SG&A Costs $102,102 $95,432 For both proposed manufacturing options, compute the following: (Input Answers Below) a. Total cost b. Average unit cost c. Total cost of goods sold d. Cost of goods sold per unit e. Total Revenue f. Breakeven volume g. Net Margin (%) h. Unit gross profit i. Gross margin (%) j. Total Net Profit You must show work and intermediate steps for credit, using excel functions or formulas is the simplest way. formula example: 487500 function example: $291,187 spring 15 Problem 1 JK Corporation JK Corporation plans to manufacture industrial fan motors. The company is considering two alternative production lines depending on the number of units they decide to manufacture per month. Financial data for these manufacturing options are as follows: Units Produced per month 750 650 Selling Price per unit $3,211 $2,356 Direct Labor cost per unit $411.11 $363.36 Direct Materials cost per unit $294.76 $323.23 Other Manufacturing Costs Variable Overhead per unit $210.05 $291.67 Monthly Mfg Overhead Costs $199,987 $192,340 Selling, General & Admin Expenses Variable SG&A per unit $69.95 $80.61 Monthly SG&A Costs $102,102 $95,432 For both proposed manufacturing options, compute the following: (Input Answers Below) a. Total cost b. Average unit cost c. Total cost of goods sold d. Cost of goods sold per unit e. Total Revenue f. Breakeven volume g. Net Margin (%) h. Unit gross profit i. Gross margin (%) j. Total Net Profit You must show work and intermediate steps for credit, using excel functions or formulas is the simplest way. formula example: 487500 function example: $291,187Explanation / Answer
Units Produced per month [a] 750.00 650.00 Selling Price per unit [b] 3,211.00 2,356.00 Direct Labor cost per unit [c] 411.11 363.36 Direct Materials cost per unit [d] 294.76 323.23 Other Manufacturing Costs Variable Overhead per unit [e] 210.05 291.67 Monthly Mfg Overhead Costs [f] 199,987.00 192,340.00 Selling, General & Admin Expenses Variable SG&A per unit [g] 69.95 80.61 Monthly SG&A Costs [h] 102,102.00 95,432.00 For both proposed manufacturing options, computing the following: a. Total cost [i= (c+d+e+g)*a + f+ h ] 1,041,491.50 976,037.50 b. Average unit cost [ j = i/a] 1,388.66 1,501.60 c. Total cost of goods sold [k = (c+d+e)*a + f ] 886,927.00 828,209.00 d. Cost of goods sold per unit [ L = j/a] 1,182.57 1,274.17 e. Total Revenue [ M = a*b] 2,408,250.00 1,531,400.00 f. Breakeven volume [ N = (f+h)/(b-c-d-e-f) 135.76 221.85 g. Net Margin (%) [ O = (M-i)/M] 56.75% 36.27% h. Unit gross profit [ P = M - k] 1,521,323.00 703,191.00 i. Gross margin (%) [ Q = P/M] 63.17% 45.92% j. Total Net Profit [ R = M-i] 1,366,758.50 555,362.50
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