Contribution margin ratio = (Sales - Variable costs) /Sales = (492,000-184,5000)/492,000 = 62.5% Breakeven sales = Fixed cost/Contribution margin ratio = 203,000/62.5% = 324,800 Option D |
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Use the following information to determine the break-even point in sales dollars: Unit sales Dollar sales...
Use the following information to determine the break-even point in sales dollars: Unit sales Dollar sales Fixed costs Variable costs 44, 400 Units $444,000 $ 197,000 $166,500 1 O O $197,000. O $128,800. O $315,200. O $444,000
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales Unit selling price Unit variable cost Fixed costs 51,000 Units $ 14.55 $ 7.60 $187,000 Multiple Choice o o 12,852 o О 26,906 o o 8,442 o ( 24,605 o О 46,638
The Cumberland Company provides the following information: Break-Even in Units and Sales Dollars, Margin of Safety Drake Company produces a single product. Last year's income statement is as follows: Sales (18,000 units) $1,083,600 Less: Variable costs 723,600 Contribution margin $360,000 Less: Fixed costs 273,000 Operating income $87,000 Required: 1. Compute the break-even point in units and sales revenue. In your computations, round the contribution margin per unit to the nearest cent and round the contribution margin ratio to four decimal...
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 45,000 Units Unit selling price $ 15.25 Unit variable cost $ 9.00 Fixed costs $ 181,000 $96,500 $321,600 $476,000 $201.000 $154,400
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...
The Dean Company has sales of $118,000, and the break-even point in sales dollars of $75,520. Determine the company's margin of safety percentage. Round answer to the nearest whole number. 36 % The Tom Company reports the following data. Sales $259,369 Variable costs 135,269 Fixed costs 51,100 Determine Tom Company's operating leverage. Round your answer to one decimal place. The Atlantic Company sells a product with a break-even point of 4,963 sales units. The variable cost is $101 per unit,...
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...
2. Assume if the company uses the new material, determine its new break-even point in both sales units and sales dollars of each individual product. (Round composite units up to next whole number.) 2. Determine its break-even point in both sales units and sales dollars of each individual product Determine the selling price per composite unit. Ratio Selling price per unit Total per composite unit Red 4 White 5 Blue 2 Determine the variable costs per composite unit. Ratio Variable...
Calculate the break even point in dollars and units for a product that has: Expected Unit Sales at launch:10,000 units Selling Price/Unit: $9.99 Fixed Costs: $50,000 Variable Cost/Unit: $2.50
20 Points Problem - Break even point & margin of safety Information concerning a product produced by Ejimaker Company appears here Sales price per unit $ 250 Variable cost per units 130 Total annual fixed manufacturing and operating costs $600,000 Required Determine the following: a) Contribution margin per unit. b) Determine the break-even point in units and sales dollars. c) Determine the sales volume in units and dollars that is required to attain a profit of 300,000. d) Determine the...