Wyandot County Analysis
You are doing a cost-volume-profit analysis for the Wyandot County Company. Presented below is cost data for the cost data for the company and represents the monthly average of the previous 12 months of data.
Assume that all units produced in any one month are sold in the same month. Some knowledge required to solve this problem was learned in chapter 2.
Wyandot County monthly average
Rent on plant building $ 100,450.00 Per Month
Plant Supervisor Salary $ 15,058.00 Per Month
Fixed plant Utility and General Maintenance Cost $ 74,872.00 Per Month
Variable plant Utility and General Maintenance Cost 5% Of Sales
Fixed Sales Staff Cost $ 40,206.00 Per Month
Variable Commisioned Sales 2% Of Sales
Fixed delivery Truck Cost $ 4,900.00 Per Month
Variable delivery Truck Cost 1% Of Sales
Direct Material Cost are
The plant employees 106 people. $ 21.65 Per Unit
The plant average wage is: $ 21.93 Per Hour
The average number of hours worked per employee is: 155 Hours per Month
Sales Price of 1 Unit $ 45.18 Per Unit
Unit Sales per Month 48,185 Units
Assume that this month is average (All numbers in current month match 12 month averages)
Classify each of the cost as either fixed or variable cost.
Classify each of the cost as either product or period cost.
Classify each product cost as either direct material, direct labor or manufacturing overhead.
Produce a Contribution Margin Income Statement for the month.
What is the Prime Cost?
What is the Conversion Cost?
Calculate Break-Even sales in units sold.
What is the Margin of Safety Percentage?
What is the Degree of Operating Leverage?
Your company would like to increase Net Operating Income by 10%. How many more units must they sale to achieve this goal.
