Im having a hard time with the following two questions.

If you can answer the question for me and show work I will give a good tip

1. Bottle Plastics manufactures and sells 50 bottles per day fixed costs are 30,000 and the variable costs for manufacturing 50 bottles are 10,000. Each bottle is sold for 1,000. How would the daily profit be affect if the daily volume of sales drop by 10%

1. Akron Apparels is a clothing retailer. Unit costs associated with its product TST151 are as follows

Direct Mats 70
Direct Manufacturing Labor 20
Variable Manufact OH 15
Fixed Manufact OH 32
Sales commision (2% sales) 5
Admin Salaries 16
Total 158

What are variable manufacturing costs per unit associated with product TST151?

Also im looking for someone to double check my work on other questions. PM me if you are interested.

Been awhile since I took accounting.
Might not be correct, but I'll give it a try.
50 bottles per day @ 1k/bottle = 50k
FC = 30k
VC of 50 bottles = 10k
50k - 30k - 10k = 10k

If sales drop 10%, that's 45 bottles per day instead of 50.
I think variable cost will also drop 10% to 9k since the 10k is based off of 50 bottles.

45k - 30k - 9k = 6k

So profits are reduced from 10k to 6k. 40% reduction, 4k profit reduction.


For second one, think about what costs change and don't change no matter if you make 1 unit or 1000.
I think it's first three, but not sure if there's more to the problem.

dont know anything about accounting, but if it's basic high school math:
selling 50 bottles:
profit = revenue - cost
profit = (50 bottles *1000$/bottle) - 30000$ - 10000$
profit = 10000$

sales drop 10% means selling 45 bottles
profit = (45 bottles *1000$/bottle) - 30000$ - 10000$
profit = 5000$

/edit: not sure what to do with variable costs. noticed that Act1 beat me to it, though.

This post was edited by carteblanche on Feb 3 2015 07:08pm

thx, sent you something for your time.

Still need some help with my 2nd question

For second question i would assume its this

Direct manufacturing-changes depending on units sold
variable manufact-its variable
sales commission- obv changes based on amount sold

Add those up get ur answer.like said before just a guess but most likely what i would do