Pannel Company has a current production level of 20,000 unit…

Pannel Company has a current production level of 20,000 units per month. Unit costs at this level are: Direct materials $0.25 Direct labor 0.40 Variable overhead 0.15 Fixed overhead 0.20 Marketing – fixed 0.20 Marketing/distribution – variable 0.40 Current monthly sales are 18,000 units. Bully Company has contacted Pannel Company about purchasing 1,500 units at $2.00 each. Current sales would NOT be affected by the one-time-only special order, and variable marketing/distribution costs would NOT be incurred on the special order. What is Pannel Company’s change in operating profits if the special order is accepted?

Bull Dog Manufacturing produces a single product that sells…

Bull Dog Manufacturing produces a single product that sells for $80. Variable costs per unit equal $30. The company expects total fixed costs to be $78,000 for the next month at the projected sales level of 2,500 units. In an attempt to improve performance, management is considering a number of alternative actions. Suppose management believes that a $75,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by ________ to justify this additional expenditure?

I Scream for Ice Cream sells specialty ice cream in three fl…

I Scream for Ice Cream sells specialty ice cream in three flavors: Rocky Road, Peanut Butter, and Fruity Tooty.  It sold 15,000 gallons last year. For every five gallons of ice cream sold, one gallon is Fruity Tooty and the remainder is split evenly between Peanut Butter and Rocky Road.  Fixed costs for I Scream for Ice Cream are $27,000 and additional information follows:  Rocky Road Peanut Butter Fruity Tooty  Sale Price per gallon $5.50 $4.00 $3.50 Variable cost per gallon $3.00 $2.00 $2.50 The breakeven sales volume in gallons of Rocky Road for I Scream for Ice Cream is: