Rundle Company produces a product that sells for $48 per unit and has a variable cost...
Rundle Company produces a product that sells for $48 per unit and has a variable cost of $27 per unit. Rundle incurs annual fixed costs of $138,600.
Required
-
Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.)
-
Calculate the break-even point assuming fixed costs increase to $174,300. (Do not round intermediate calculations.)
Homework Answers
(A)
(1)
Contribution margin per unit = sales price per unit - variable cost per unit
= $48 - $27 = $21
Break even point (unit sales) = fixed expenses/contribution margin per unit
= $138600/$21
= 6600 units
(2)
Contribution margin ratio = contribution margin/sales
= $21/$48 = 43.75%
Break even point (dollar sales) = fixed expenses/contribution margin ratio
= $138600/43.75%
= $316800
(B)
(1)
Break even point (unit sales) = fixed expenses/contribution margin per unit
= $174300/$21
= 8300 units
(2)
Break even point (dollar sales) = fixed expenses/contribution margin ratio
= $174300/43.75%
= $398400
Add Answer to:
Rundle Company produces a product that sells for $48 per unit
and has a variable cost...
Rooney Company produces a product that sells for $40 per unit and has a variable cost...
Rooney Company produces a product that sells for $40 per unit and has a variable cost of $21 per unit. Rooney incurs annual fixed costs of $127.300 Required o. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $161,500. (Do not round intermediate calculations.) 40 a Sales volume in units Sales in dollars b Break-even units Break even sales
Fowler Company produces a product that sells for $200 per unit and has a variable cost...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per...
Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per unit, and the sales price is $40.00 per unit. Rundle desires to earn an annual profit of $64,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Rundle Company produces a product that has a variable cost of $26 per unit and a...
Rundle Company produces a product that has a variable cost of $26 per unit and a sales price of $58 per unit. The company’s annual fixed costs total $660,000. It had net income of $260,000 in the previous year. In an effort to increase the company’s market share, management is considering lowering the selling price to $51 per unit. Required If Rundle desires to maintain net income of $260,000, how many additional units must it sell to justify the price...
Is this correct? If not, what are the correct answers? Rundle Corporation produces products that it...
Is this correct? If not, what are the correct answers?
Rundle Corporation produces products that it sells for $16 each. Variable costs per unit are $4, and annual fixed costs are $259,200. Rundle desires to earn a profit of $31,200. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. ſ $ a. Break-even point in units Break-even point in...
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per...
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per unit for the variable costs of the product and Incurs annual fixed costs of $165,300. Zachary expects to sell 22,100 units of product Required Determine Zachary's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e, 0.2345 should be entered as 23.45) Margin of safety % Reld Company is considering the production of a new product. The expected variable...
Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin...
Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $73 per unit. Variable selling expenses are $15 per unit, annual fixed manufacturing costs are $490,000, and fixed selling and administrative costs are $258,800 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach c. Prepare a contribution margin income...
Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $110 per unit. Variable selling expenses are $20 per unit, annual fixed manufacturing costs are $466,000, and fixed selling and administrative costs are $269,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income...
Ritchie Manufacturing Company makes a product that it sells for $190 per unit. The company incurs...
Ritchie Manufacturing Company makes a product that it sells for
$190 per unit. The company incurs variable manufacturing costs of
$96 per unit. Variable selling expenses are $18 per unit, annual
fixed manufacturing costs are $462,000, and fixed selling and
administrative costs are $260,000 per year.
Required
Determine the break-even point in units and dollars using each
of the following approaches:
Use the equation method.
Use the contribution margin per unit approach.
Prepare a contribution margin income statement for the...
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6,...
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $241,200. Franklin desires to earn a profit of $58,800. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Rooney Company produces a product that sells for $40 per unit and has a variable cost of $21 per unit. Rooney incurs annual fixed costs of $127.300 Required o. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $161,500. (Do not round intermediate calculations.) 40 a Sales volume in units Sales in dollars b Break-even units Break even sales
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Rundle Company incurs annual fixed costs of $103,055. Variable costs for Rundle's product are $25.20 per unit, and the sales price is $40.00 per unit. Rundle desires to earn an annual profit of $64,000. Required Use the contribution margin ratio approach to determine the sales volume in dollars and units required to earn the desired profit. (Do not round intermediate calculations. Round your final answers to the nearest whole number.) Sales in dollars Sales volume in units
Is this correct? If not, what are the correct answers?
Rundle Corporation produces products that it sells for $16 each. Variable costs per unit are $4, and annual fixed costs are $259,200. Rundle desires to earn a profit of $31,200. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. ſ $ a. Break-even point in units Break-even point in...
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per unit for the variable costs of the product and Incurs annual fixed costs of $165,300. Zachary expects to sell 22,100 units of product Required Determine Zachary's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e, 0.2345 should be entered as 23.45) Margin of safety % Reld Company is considering the production of a new product. The expected variable...
Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturing costs of $73 per unit. Variable selling expenses are $15 per unit, annual fixed manufacturing costs are $490,000, and fixed selling and administrative costs are $258,800 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach c. Prepare a contribution margin income...
Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs of $110 per unit. Variable selling expenses are $20 per unit, annual fixed manufacturing costs are $466,000, and fixed selling and administrative costs are $269,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income...
Ritchie Manufacturing Company makes a product that it sells for
$190 per unit. The company incurs variable manufacturing costs of
$96 per unit. Variable selling expenses are $18 per unit, annual
fixed manufacturing costs are $462,000, and fixed selling and
administrative costs are $260,000 per year.
Required
Determine the break-even point in units and dollars using each
of the following approaches:
Use the equation method.
Use the contribution margin per unit approach.
Prepare a contribution margin income statement for the...
Franklin Corporation produces products that it sells for $18 each. Variable costs per unit are $6, and annual fixed costs are $241,200. Franklin desires to earn a profit of $58,800. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit. a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars
Most questions answered within 3 hours.
-
n January 1, Coldwater Company has a net book value of
$1,683,000 as follows:
1,050 shares...
asked 1 minute from now -
True or False?
1) The superfund legislation established a national trust fund
to pay for the...
asked 16 seconds from now -
Robert was able to travel 166.0 miles in 4.000 hours and used 38
liters of gasoline....
asked 4 minutes ago -
Explain the differences between FIND and FINDSTR command in
windows:
[write in a few sentences]
asked 15 minutes ago -
A 200g block attached to a horizontal spring is oscillating with
an amplitude of 2.0cm and...
asked 18 minutes ago -
When solving for an optimal bundle using the Hicksian and
Marshallian demand, should you get the...
asked 19 minutes ago -
1. The standard width between rails on North American and most
European railroads is 5 ft...
asked 16 minutes ago -
Which of these is a pure compound, which is an element, and
which is neither?
helium...
asked 23 minutes ago -
How much energy is required to vaporize 175 g of butane at its
boiling point? The...
asked 33 minutes ago -
X has a normal distribution with the given mean and
standard deviation. Find the indicated probability....
asked 35 minutes ago -
Calculate the probability that a particle will be found in a
tiny slice of space between...
asked 38 minutes ago -
Developed countries with some of the highest GDPs per
capita:
a)are not found outside of Europe...
asked 40 minutes ago