If we sell our product for $20 per unit. Next year, fixed expenses are expected to...
If we sell our product for $20 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $12 per unit. Compute the break even point in units. How many units must we sell to generate a target profit of $100,000?
Homework Answers
Contribution margin per unit = Selling price per unit - Variable
cost per unit
Contribution margin per unit = $20 - $12
Contribution margin per unit = $8
Breakeven point in units = Fixed expenses / Contribution margin
per unit
Breakeven point in units = $400,000 / $8
Breakeven point in units = 50,000
Required sales in units = (Fixed expenses + Target profit) /
Contribution margin per unit
Required sales in units = ($400,000 + $100,000) / $8
Required sales in units = $500,000 / $8
Required sales in units = 62,500
Add Answer to:
If we sell our product for $20 per unit. Next year, fixed
expenses are expected to...
Question ABC Corporation sells its product for $12 per unit. Next year, fixed expenses are expected...
Question ABC Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sen to generate a target profit (net operating income) of $80,000?
Hollis Company sells a single product for $20 per unit. The company's fixed expenses total $240,000...
Hollis Company sells a single product for $20 per unit. The company's fixed expenses total $240,000 per year, and variable expenses are $12 per unit of product. The company's break-even point is: A) $400,000 B) $600,000 C) 20,000 units D) 12,000 units
We sell our product for $20 per unit, variable costs of $10 and fixed costs of...
We sell our product for $20 per unit, variable costs of $10 and fixed costs of $200,000. If we sell 25,000 units, how much is our margin of safety in dollars?
If we sell our product for $20 per unit, variable costs of $10 and fixed costs...
If we sell our product for $20 per unit, variable costs of $10 and fixed costs of $200,000. What sales revenue (in dollars) is needed to attain a $60,000 profit?
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling...
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling price would shift the break even sales point to the left An increase in unit variable costs would decrease the slope of the total costs line An increase in the unit selling price would shift the break-even sales point to the right All of the answers are correct QUESTION 4 Watson Company sells its product for $10 a unit. Next year, fixed expenses are...
Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10...
Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $400,000 units
We make and sell a single product that sell for $42 per unit. The variable cost...
We make and sell a single product that sell for $42 per unit. The variable cost to manufacture is unit is $10; the variable cost to sell each unit is $5. Last year, we sold 5,000 units and made a profit of $60,000. How many units must we sell to make a profit of $100,000 this year? A. 100,000 B. 75,000 C. 6,000 OD. None of the above.
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and...
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...
Target Profit Trailblazer Company sells a product for $265 per unit. The variable cost is $120 per unit, and fixed costs...
Target Profit Trailblazer Company sells a product for $265 per unit. The variable cost is $120 per unit, and fixed costs are $1,000,500. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $350,175. a. Break-even point in sales units units b. Break-even point in sales units if the company desires a target profit of $350,175 units
Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60...
Target Profit Ramirez Inc. sells a product for $80 per unit. The variable cost is $60 per unit, and fixed costs are $2,000,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $250,000. a. Break-even point in sales units 100,000 units b. Break-even point in sales units if the company desires a target profit of $250,000 22,500 units Feedback a. Unit sales price minus unit...
Question ABC Corporation sells its product for $12 per unit. Next year, fixed expenses are expected to be $400,000 and variable expenses are expected to be $8 per unit. How many units must the company sen to generate a target profit (net operating income) of $80,000?
Which of the following are true in a cost-volume-profit graph: An increase in the unit selling price would shift the break even sales point to the left An increase in unit variable costs would decrease the slope of the total costs line An increase in the unit selling price would shift the break-even sales point to the right All of the answers are correct QUESTION 4 Watson Company sells its product for $10 a unit. Next year, fixed expenses are...
Target Profit Beard Company sells a product for $15 per unit. The variable cost is 10 per unit, and fixed costs are 1,750,000. Determine (a) the break-even point in sales units and (b) the sales units required for the company to achieve a target profit of $400,000. a. Break-even point in sales units units b. Break-even point in sales units required for the company to achieve a target profit of $400,000 units
We make and sell a single product that sell for $42 per unit. The variable cost to manufacture is unit is $10; the variable cost to sell each unit is $5. Last year, we sold 5,000 units and made a profit of $60,000. How many units must we sell to make a profit of $100,000 this year? A. 100,000 B. 75,000 C. 6,000 OD. None of the above.
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...
Most questions answered within 3 hours.
-
Question Three
Suppose you as project manager are using the Waterfall
development methodology on a large...
asked 53 minutes ago -
Which statement is not true about welfare in Canada?
A.Benefits typically vary based on one's ability...
asked 1 hour ago -
Please help me with FLOWCHART and UML diagram for class,
thank you!
#include <iostream>
#include <fstream>...
asked 2 hours ago -
3. Describe the “logic circuit” of the Lac operon. Which
proteins are bound or not to...
asked 2 hours ago -
Ayesha’s adjusted gross income is $60,000 in 2019. She donated a
piece of artwork with a...
asked 2 hours ago -
For Dijkstra’s shortest path algorithm:
a. Give the Big-O time for Dijkstra’s shortest path algorithm
and...
asked 2 hours ago -
Phosphorus violates the 'octet rule' in biological molecules,
forming more covalent bonds than expected based on...
asked 2 hours ago -
A 1.3 eV electron has a 10-4 probability of tunneling
through a 2.4 eV potential barrier....
asked 2 hours ago -
What is the one ingredient that is common to being successful
with all stakeholders?
profit
trust...
asked 2 hours ago -
Write an assembly language 32 bit program that reads in lines of
text by a .txt...
asked 2 hours ago -
what is the density ( in g/L) of hydrogen gas at 29 degrees C and a...
asked 3 hours ago -
5-6. You are considering three investment alternatives for some
spare cash: Old Reliable Corporation stock (A1),...
asked 2 hours ago