The Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The average selling price for the various units is $550. The associated variable cost is $300 per unit. Fixed costs for the firm average $ 180000 annually.
a. What is the break-even point in units for the company?
b. What is the dollar sales volume the firm must achieve to reach the break-even point?
c. What is the degree of operating leverage for a production and sales level of 3,000 units for the firm? (Calculate to three decimal places.)
d. What will be the projected effect on earnings before interest and taxes if the firm's sales level should increase by 35 percent from the volume noted in part (c)?
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The Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The...
(Operating leverage) The C. M. Quarles Distributing Company manufactures an assortment of cold air intake systems for high-performance engines. The average selling price for the various units is $650. The associated variable cost is $250 per unit. Fixed costs for the firm average $ 170,000 annually. a. What is the break-even point in units for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What is the degree of operating...
(Break-even point and operating leverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $45. Footwear Inc. incurs fixed costs of $180,000 per year. a. What is the break-even point in pairs of shoes sold for the company? b. What is the dollar sales volume the firm must achieve to reach the...
Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $60 Footwear Inc. incurs fixed costs of 170,000 per year. a. What is the break-even point in pairs of shoes sold for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What would...
Cost-Volume-Profit (CVP) Relationships Bilco Fabrication manufactures one product, a low-cost car battery. Cost analysis by the accounting department has determined that the variable cost per unit is $12. Bilco’s fixed costs amount to $792,480 annually. The company is projecting data based on a sales price of $20. Use the above data to answer the following: 1. What is the contribution margin of Bilco’s battery, stated both as (a) a per-unit dollar amount, and (b) a percentage. a. ______________ b. _______________...
Blank space answer:
1) 122,137 / 337,913 / 522,648 / 308,434
2) low / high
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