4) Wayne Manufacturing Company had the following information for the 2021. Selling price $30 Direct materials cost per u
Posted: Mon May 30, 2022 7:16 am
4) Wayne Manufacturing Company had the following information for
the 2021.
Selling price $30
Direct materials cost per unit 4
Indirect materials cost per unit 3.20
Direct manufacturing labor per unit 4.8
Indirect manufacturing labor cost per unit 2
Salespersons' company vehicle costs per unit 1.65
Annual property taxes on manufacturing plant building 28,000
Annual Depreciation of manufacturing equipment 264,000
Annual Depreciation of office equipment 118,000
Miscellaneous plant overhead per unit 1.35
Plant utilities per unit .92
General office expenses per unit 1.08
Annual Marketing costs 30,000
Tax
rate
30%
d- How many units does Wayne Company have to sell to make
operating income of $55,000?
e- How many units does Wayne Company have to sell to make
operating income of $46,200?
f- Calculate the operating leverage when expected sale is 60,000
units.
g- Calculate the margin of safety in units if expected sale is
70,000 units.
the 2021.
Selling price $30
Direct materials cost per unit 4
Indirect materials cost per unit 3.20
Direct manufacturing labor per unit 4.8
Indirect manufacturing labor cost per unit 2
Salespersons' company vehicle costs per unit 1.65
Annual property taxes on manufacturing plant building 28,000
Annual Depreciation of manufacturing equipment 264,000
Annual Depreciation of office equipment 118,000
Miscellaneous plant overhead per unit 1.35
Plant utilities per unit .92
General office expenses per unit 1.08
Annual Marketing costs 30,000
Tax
rate
30%
d- How many units does Wayne Company have to sell to make
operating income of $55,000?
e- How many units does Wayne Company have to sell to make
operating income of $46,200?
f- Calculate the operating leverage when expected sale is 60,000
units.
g- Calculate the margin of safety in units if expected sale is
70,000 units.