What is the break-even point in units when you have a total fixed cost of $500,000,...
What is the break-even point in units when you have a total fixed cost of $500,000, a unit-selling price of $16 and a unit variable cost of $8? Calculate the Breakeven Point in Total Units.
|
Answer: 62,500 |
||
|
66,500 |
||
|
31,500 |
Answer to the previous question is profit $62,500
In the above problem what would be the volume of sale units if the firm wanted to have a profit of $1,000,000? Calculate the Volume Point in Total Units.
|
A.162,500 |
||
|
B.187,500 |
||
|
C.150,000 |
Homework Answers
Add Answer to:
What is the break-even point in units when you have a total
fixed cost of $500,000,...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
1) At the break even point of 400 units, variable cost were $400 and fixed costs...
1) At the break even point of 400 units, variable cost were $400 and fixed costs were $200. how much will the 401st unit sold contribute to operating profit before income taxes? 2) Break even would not change if : a) sales price increases, b) fixed cost decrease, c) sales volume decrease, d) variable cost per unit increase 3) what is break even point in dollars? sales price: $100, variable cost per unit: $40, total fixed cost :$ 120,000 4)...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials Direct labor $0.37 0.63 Variable factory overhead Variable selling expense 0.53 0.12 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all foxed) totals $48,350. Unless otherwise instructed, round all total doilar figures (eg. sales, total contribution-margin) to the...
2 Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable Raw Material 300,000 Direct Labor 200,000...
2 Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable Raw Material 300,000 Direct Labor 200,000 Factory Costs 100,000 150,000 Selling and Admin 110,000 50,000 Total Costs 210,000 700,000 910,000 Operating Income 90,000 a. Based on the preceding data, calculate break-even in units b. If Bidwell desires an Operating Profit of $150,000, how many units must it sell? c. If fixed costs increase by $31,500, what is the new break-even point? Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach. Fixed Costs = $10,000 Variable Costs = $10 Using break-even analysis calculate: 1. How many units need to be sold to...
Break-Even Sales and Cost-Volume-Profit Chart Last year, Hever Inc. had sales of $500,000, based on a...
Break-Even Sales and Cost-Volume-Profit Chart Last year, Hever Inc. had sales of $500,000, based on a unit selling price of $250. The variable costper unit was $175, and fixed costs were $75,000. The maximum sales within Hever Inc.'s relevant range are 2,500 units. Hever Inc. is considering a proposal to spend an additional $33,750 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-profit chart on your own...
Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of...
Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of $345,400. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. s 2. Sooner Industries charges a price of $100 and has fixed cost of $498,000. Next year, Sooner expects to sell 19,700 units and make operating income of $169,000. What is the variable cost per unit? What is the contribution margin ratio? Note:...
BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit,...
BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break- even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its varia...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $10,000,000. The...
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a....
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials Direct labor $0.37 0.63 Variable factory overhead Variable selling expense 0.53 0.12 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all foxed) totals $48,350. Unless otherwise instructed, round all total doilar figures (eg. sales, total contribution-margin) to the...
2 Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable Raw Material 300,000 Direct Labor 200,000 Factory Costs 100,000 150,000 Selling and Admin 110,000 50,000 Total Costs 210,000 700,000 910,000 Operating Income 90,000 a. Based on the preceding data, calculate break-even in units b. If Bidwell desires an Operating Profit of $150,000, how many units must it sell? c. If fixed costs increase by $31,500, what is the new break-even point? Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable...
Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach. Fixed Costs = $10,000 Variable Costs = $10 Using break-even analysis calculate: 1. How many units need to be sold to...
Required: 1. At the break-even point, Jefferson Company sells 105,000 units and has fixed cost of $345,400. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. s 2. Sooner Industries charges a price of $100 and has fixed cost of $498,000. Next year, Sooner expects to sell 19,700 units and make operating income of $169,000. What is the variable cost per unit? What is the contribution margin ratio? Note:...
BREAK-EVEN ANALYSIS A company's fixed operating costs are $500,000, its variable costs are $2.30 per unit, and the product's sales price is $4.80. What is the company's break- even point; that is, at what unit sales volume will its income equal its costs? Round your answer to the nearest whole number. units
EXERCISES: Set A (continued) 30. Break-Even Point and Target Profit Measured in Units (Multiple Products a. Start by calculating the contribution margin for each product Sweater contribution margin- Jacket contribution margin- per unit per unit Then, calculate the weighted average contribution margin per unit: Weighted average contribution margin per unit = ) + ( b. The break-even point in units is calculated as: c. Break-even point in units for each product is: Sweater Jacket Total units (= units (= units...
Most questions answered within 3 hours.
-
If for a test the P-value is between 0.0025 and 0.005, what
conclusion can you draw?...
asked 10 minutes ago -
Using Python. Write a function clean2(aList) that takes a list
of integers aList as argument, and...
asked 16 minutes ago -
Intrapreneurship is defined as the
development of an enterprise culture with an existing (Nandan,
2009). An...
asked 30 minutes ago -
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 34 minutes ago -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 40 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 38 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 42 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 41 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 53 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 57 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 1 hour ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 1 hour ago