Bando Corp. sells a single part for a price of $46 per unit. The variable costs...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100.
Required:
a. What is the break-even level of monthly sales for Bando?
b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing expect to sell next month?
Homework Answers
|
1. Break-even sales = Fixed cost/Contribution margin per unit = 143,100/(46-19) = 5,300 units |
|
2. As we know that Margin of Safety = Sales - Breakeven sales = 5,300/(100-20)% = 5,300/80% = 6625 units |
Add Answer to:
Bando Corp. sells a single part for a price of $46 per unit. The
variable costs...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs...
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
Bando Corp. sells a single part for a price of $88 per unit. The variable costs...
Bando Corp. sells a single part for a price of $88 per unit. The variable costs of the part are $47 per unit and monthly fixed costs are $274,700. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
Jasmine Inc. sells a product for $56 per unit. Variable costs per unit are $33, and...
Jasmine Inc. sells a product for $56 per unit. Variable costs per unit are $33, and monthly fixed costs are $211,600. a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to eam a target profit of $75,900? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400...
Problem 6-2 Keebee, Inc. sells laptops for $1,000 per unit. Variable costs per unit are $400 and monthly fixed costs are $2,400,000. The contribution margin income statement for last month is as follows. Contribution Margin Income Statement 6,000 units sold Per unit Total Percent of sales Sales price $1,000 $6,000,000 100% Variable cost 400 2,400,000 40% Contribution margin $600 3,600,000 60% Fixed costs 2,400,000 Profit $1,200,000 Break-even units = $2,400,000 ÷ 600 = 4,000 Break-even sales = 4,000 × $1,000...
Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are...
Ozark Metal Co. makes a single product that sells for $42 per unit. Variable costs are $27.30 per unit, and fixed costs total $65,415 per month. a. Calculate the number of units that must be sold each month for the firm to break even b. Assume current sales are $272,000. Calculate the margin of safety and the margin of safety ratio. c. Calculate the operating income if 5,000 units are sold in a month. d. Calculate operating income if the...
Maple Enterprises sells a single product with a selling price of $70 and variable costs per...
Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $28. The company's monthly fixed expenses are $25,200. A. What is the company's break-even point in units? Break-even units units B. What is the company's break-even point in dollars? Break-even dollars $ C. Construct a contribution margin income statement for the month of September when they will sell 1,000 units. Use a minus sign for a net loss if present. Income Statement...
Maple Enterprises sells a single product with a selling price of $70 and variable costs per...
Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $28. The company's monthly fed expenses are $25.200 A. What is the company's break-even point in units? Break-even units units B. What is the company's break-even point in dollars? Break-even dollars & C. Construct a contribution margin income statement for the month of September when they will sell 900 units. Use a minus sign for a net loss if present Income Statement...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed costs are $120,000. a. What is the break-even point in units? Break-Even Point 2,609 units b. What unit sales would be required to earn a target profit of $328,000? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Degree of Operating Leverage d....
Marlin Motors sells a single product with a selling price of $490 with variable costs per...
Marlin Motors sells a single product with a selling price of $490 with variable costs per unit of $196. The company's monthly fixed expenses are $52,920. C. Prepare a contribution margin income statement for the month of November when they will sell 140 units. Use a minus sign for a net loss if present. Income Statement Sales $ Variable Costs Contribution Margin $ Fixed Costs Net Loss $ D. How many units will Marlin need to sell in order to...
Maple Enterprises sells a single product with a selling price of $60 and variable costs per...
Maple Enterprises sells a single product with a selling price of $60 and variable costs per unit of $24. The company's monthly fixed expenses are $18,000. A. What is the company's break-even point in units? Break-even units 500 units B. What is the company's break-even point in dollars? Break-even dollars $ 30,000 Feedback C. Construct contribution margin income statement for the month of September when they will sell 1,000 units. Use a minus sign for a net loss if present....
Bando Corp. sells a single part for a price of $46 per unit. The variable costs of the part are $19 per unit and monthly fixed costs are $143,100. Required: a. What is the break-even level of monthly sales for Bando? b. The cost analyst tells you that based on the price and cost information of the part and the marketing department's sales projection for next month, the margin of safety percentage is 20 percent. How many units does marketing...
Jasmine Inc. sells a product for $56 per unit. Variable costs per unit are $33, and monthly fixed costs are $211,600. a. What is the break-even point in units? Break-Even Point units b. What unit sales would be required to eam a target profit of $75,900? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the margin of safety in sales dollars? Margin of Safety
Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $28. The company's monthly fixed expenses are $25,200. A. What is the company's break-even point in units? Break-even units units B. What is the company's break-even point in dollars? Break-even dollars $ C. Construct a contribution margin income statement for the month of September when they will sell 1,000 units. Use a minus sign for a net loss if present. Income Statement...
Maple Enterprises sells a single product with a selling price of $70 and variable costs per unit of $28. The company's monthly fed expenses are $25.200 A. What is the company's break-even point in units? Break-even units units B. What is the company's break-even point in dollars? Break-even dollars & C. Construct a contribution margin income statement for the month of September when they will sell 900 units. Use a minus sign for a net loss if present Income Statement...
Cantor Products sells a product for $86. Variable costs per unit are $46, and monthly fixed costs are $120,000. a. What is the break-even point in units? Break-Even Point 2,609 units b. What unit sales would be required to earn a target profit of $328,000? Total Required Sales units c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.) Degree of Operating Leverage d....
Maple Enterprises sells a single product with a selling price of $60 and variable costs per unit of $24. The company's monthly fixed expenses are $18,000. A. What is the company's break-even point in units? Break-even units 500 units B. What is the company's break-even point in dollars? Break-even dollars $ 30,000 Feedback C. Construct contribution margin income statement for the month of September when they will sell 1,000 units. Use a minus sign for a net loss if present....
Most questions answered within 3 hours.
-
There is X-linked mutations in flies in this example. You need
to determine the inheritence pattern...
asked 27 seconds ago -
1) There is a 5.0 μC charge at each of 3 corners of a square
(each...
asked 11 minutes ago -
A study of 420,095 cell phone users found that
134 of them developed cancer of the...
asked 14 minutes ago -
2.50 g of NH4Cl is added to 12.9 g of water. Calculate the
molality of the...
asked 17 minutes ago -
Part 1
(a) Calculate the pH at 25°C of a 0.10 M solution of a
weak...
asked 19 minutes ago -
1-Calculate the mass in grams of 2.55 moles of KCl
2- Calculate how many moles are...
asked 47 minutes ago -
Bright Sun, Inc. sold an issue of 30-year $1,000 par value bonds
to the public. The...
asked 41 minutes ago -
Bismuth-210 is beta emitter with a half-life of 5.0 days.
Part A
If a sample contains...
asked 34 minutes ago -
The income statement for the month of June, 2014 of Happy Smiles
Enterprises contains the following...
asked 47 minutes ago -
To be done in java code. 2 words are anagrams if 1 word can be
formed...
asked 44 minutes ago -
Two players take turns at removing 1 to 4 coins from an original
pile of 16...
asked 41 minutes ago -
1. Choose value for p between 0.20 and 0.80. It should have at
least two decimal...
asked 48 minutes ago