Question

Delta Corporation’s production and sales data provided below:                                 

Delta Corporation’s production and sales data provided below:

                                                            Per Unit                      Percentage

            Selling price                           $9.00                            100%

            Variable cost $6.00 66.67%   

            Contribution margin $3.00 33.33%

           

            Total fixed costs                     $30,000

Compute a break-even point in units and dollars if the following changes occurred:

Selling price decreased by one-tenth.

Variable costs decreased by one-third.

Fixed costs increased by one-third.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

* Calculation : Revised Per unit amount Selling Price = variable Cost = (9 (9xvio) = 9-0.9 = $8.10 (6-(68\/3) = 6-2 = 84.00 T

Add a comment
Know the answer?
Add Answer to:
Delta Corporation’s production and sales data provided below:                                 
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 2. Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and...

    2. Kylie's Cookies is considering the purchase of a larger oven that will cost $2,200 and will increase her fixed costs by $59. What would happen if she purchased the new oven to realize the variable cost savings of $0.10 per cookie, and what would happen if she raised her price by just $0.20? She feels confident that such a small price increase will decrease the sales by only 25 units and may help her offset the increase in fixed...

  • Knowledge Check 01 Shorebridge Repair's current sales revenue is $150,000 and its break-even sales point is...

    Knowledge Check 01 Shorebridge Repair's current sales revenue is $150,000 and its break-even sales point is $120,000. It incurs fixed costs of $100,000. What is its margin of safety? $150,000 $50,000 $120,000 $30,000 Knowledge Check 02 Shorebridge Repair's current sales revenue is $150,000 and its break-even sales point is $120,000. It incurs fixed costs of $100,000. What is its margin of safety as a percentage of sales? 20% 80% 66.67% O 33.33%

  • APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of...

    APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Lennon Products Further analysis of Lennon Products’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...

  • APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Epstein Hardware Further analysis of Epstein Har...

    APPLY THE CONCEPTS: Calculate the break-even point in sales dollars for Epstein Hardware Further analysis of Epstein Hardware’s fixed costs revealed that the company actually faces annual fixed overhead costs of $9,800 and annual fixed selling and administrative costs of $4,200. Variable cost estimates are correct: direct materials cost, $4.00 per unit; direct labor costs, $5.00 per unit; and variable overhead costs, $1.00 per unit. At this time, the selling price of $20 will not change. Complete the following formulas...

  • Iris Manufacturing Inc. has provided you with the following CVP income statement: Sales (5,500 units) $1,100,000...

    Iris Manufacturing Inc. has provided you with the following CVP income statement: Sales (5,500 units) $1,100,000 $200 per unit Variable costs 693,000 126 per unit Contribution margin 407,000 $74 per unit Fixed costs 339,660 Operating income $67,340 Management is considering the following course of action to increase operating income: reduce the selling price by 10%, with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%. Calculate the break-even point...

  • Knowledge Check 01 Shorebridge Repair's current sales revenue is $150,000 and its break-even sales point is...

    Knowledge Check 01 Shorebridge Repair's current sales revenue is $150,000 and its break-even sales point is $120,000. It incurs fixed costs of $100,000 What is its margin of safety? $150,000 $50,000 $120,000 • $30,000 Knowledge Check 02 Shorebridge Repair's current sales revenue is $150,000 and its What is its margin of safety as a percentage of sales? is $120.000. It incurs fixed costs of $100,000 • 20% 800 66.67% 33.33%

  • Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio...

    Solomon Company reported the following data regarding the product it sells: Sales price Contribution margin ratio Fixed costs s 60 259 $360,000 Required Use the contribution margin ratio approach and consider each requirement separately. a. What is the break-even point in dollars? In units? b. To obtain a profit of $30,000, what must the sales be in dollars? In units? c. If the sales price increases to $75 and variable costs do not change, what is the new break-even point...

  • The section of Waterways that produces controllers for the company provided the following information. Sales in...

    The section of Waterways that produces controllers for the company provided the following information. Sales in units for month of February 4,100 Variable manufacturing cost per unit $9.00 Sales price per unit $42.00 Fixed manufacturing overhead cost (per month for controllers) $80,000 Variable selling and administrative expenses per unit $3.60 Fixed selling and administrative expenses (per month for controllers) $12,400 Using this information for the controllers, determine the contribution margin ratio, the degree of operating leverage, the break-even point in...

  • Question 4 Iris Manufacturing Inc. has provided you with the following CVP income statement Sales (5,300...

    Question 4 Iris Manufacturing Inc. has provided you with the following CVP income statement Sales (5,300 units) $1,060,000 $200 per unit Variable costs Contribution margin 371,000 $70 per unit Fixed costs Operating income 689,000 130 per unit 310,800 60,200 Management is considering the following course of action to increase operating income: reduce the selling price by 20%, with no changes to unit variable costs or fixed costs. Management feels that this change will increase unit sales by 30%. Calculate the...

  • Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,260...

    Cullumber Bucket Co., a manufacturer of rain barrels, had the following data for 2019. Sales 2,260 units Sales price $50 per unit Variable costs $30 per unit Fixed costs $20,340 What is the contribution margin ratio? Contribution margin ratio enter the Contribution margin ratio in percentages %       What is the break-even point in dollars? Break-even point $enter the break-even point in dollars       What is the margin of safety in dollars and as a ratio? Margin of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT