16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...

Question

Question

16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs of $650,000 a

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Break Even Quantity = Fixed Cost / ( Selling price per unit - variable cost per unit)

= $ 650,000 / ( $ 70 - $ 45)

= 26,000 units

Hence the correct answer is 26,000 units

Add a comment

Answer 2

Similar Homework Help Questions

Break-even Quantity Shapland Inc. has fixed operating costs of $350,000 and variable costs of $50 per...

Break-even Quantity Shapland Inc. has fixed operating costs of $350,000 and variable costs of $50 per unit. If it sells the product for $85 per unit, what is the break-even quantity? Round your answer to the nearest whole numner. units
(15-1). Break-Even Quantity Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50...

(15-1). Break-Even Quantity Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50 per unit. If it sells the product for $75 per unit, what is the break-even quantity? F = $500,000 V = $50 P = $75 QBE
4. Problem 13.06 Click here to read the eBook: Business and Financial Risk BREAK-EVEN ANALYSIS The...

4. Problem 13.06 Click here to read the eBook: Business and Financial Risk BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $24, fixed costs are $110,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 9,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. What is the firm's gain or loss at sales of 18,000 watches? Enter loss (if any) as negative value....

ekook Break-even Quantity Shapland Inc. has fixed operating costs of $400,000 and variable costs of $40...

ekook Break-even Quantity Shapland Inc. has fixed operating costs of $400,000 and variable costs of $40 per unit. If it sells the product for $80 per unit, what is the break-even quantity Round your answer to the nearest whole numer unts eBook Optimal Capital Structure with Hamada Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 8%, and its stock price is $40 per share...
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; r...

Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; required return 12 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Break-even quantity Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight...
12) A project has an accounting break-even quantity of 28,700 units, a cash break-even quantity of...

12) A project has an accounting break-even quantity of 28,700 units, a cash break-even quantity of 17,120 units, a life of 10 years, fixed costs of $178,000, variable costs of $18.40 per unit, and a required return of 14 percent. Depreciation is straight-line to zero over the project life. Ignoring taxes, what is the financial break-even quantity? A) 39,723 units B) 39,624 units C) 39,201 units D) 39,320 units E) 39,458 units please show step by step using all break-evens

Consider a project with the following data: accounting break-even quantity = 14,200 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 14,200 units; cash break-even quantity = 10,300 units; life = five years; fixed costs = $170,000; variable costs = $27 per unit; required return = 12%. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Break-even quantity
break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...

break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both...

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 $12,000,000. The...

1. Break-Even Point Radison Inc. sells a product for $97 per unit. The variable cost is...

1. Break-Even Point Radison Inc. sells a product for $97 per unit. The variable cost is $52 per unit, while fixed costs are $516,375. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $103 per unit. a. Break-even point in sales units ? units b. Break-even point if the selling price were increased to $103 per unit ? units 2. Outdoors Company sells a product for $150 per...

16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...

Homework Answers

Add Answer to:
16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...

Post as a guest

Earn Coins

Break-even Quantity Shapland Inc. has fixed operating costs of $350,000 and variable costs of $50 per...

(15-1). Break-Even Quantity Shapland Inc. has fixed operating costs of $500,000 and variable costs of $50...

4. Problem 13.06 Click here to read the eBook: Business and Financial Risk BREAK-EVEN ANALYSIS The...

ekook Break-even Quantity Shapland Inc. has fixed operating costs of $400,000 and variable costs of $40...

Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity 5,000 units; life -eight years; fixed costs $140,000; variable costs $22 per unit; r...

12) A project has an accounting break-even quantity of 28,700 units, a cash break-even quantity of...

Consider a project with the following data: accounting break-even quantity = 14,200 units; cash break-even quantity...

break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...

1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both...

1. Break-Even Point Radison Inc. sells a product for $97 per unit. The variable cost is...

16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...

Homework Answers

Add Answer to: 16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...

Post as a guest

Earn Coins

Add Answer to:
16-2: Business Risk and Financial Risk Problem 16-1 Break-even Quantity Shapland Inc. has fixed operating costs...