Cost accounting homework

ACC 381 Chapter 3 – HO #1 1. Appliance Possible, Inc. (AP) is a manufacturer of toaster ovens. The following data are available for AP’s expected costs at production levels of 100,000 units. Ap’s tax rate is 40%. Variable Costs: Manufacturing Administrative Selling $6 per unit $4 per unit $3 per unit Fixed Costs Manufacturing Administrative $160,000 $ 80,000 If AP sells the toaster ovens for $16 each, how many units will it have to sell to make a profit of $60,000 after taxes? 2. In 2021, Jaguar Company had a breakeven point of $350,000 based on a selling price of $5 per unit and fixed costs of $112,000. In 2022, the selling price and the variable costs per unit did not change, but the breakeven point increased to $420,000. a) Compute the variable costs per unit and the contribution margin ratio for 2021. b) Compute the increase in fixed costs for 2022.

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