Homework Answers
Break even sales volume = Fixed Costs / (Sale price per unit - Variable cost per unit)
Variable cost per unit = $1
Sale price per unit is twice the Variable Cost which means $2.
Fixed Costs = $100,000
Break even sales volume = $100,000 / ($2 - $1)
= $100,000 / $1
= 100,000 units
Add Answer to:
1) A new company has announced that the sales price would be set at twice the...
5. A new product is being considered by Semo Enterprises. The sales price would be set...
5. A new product is being considered by Semo Enterprises. The sales price would be set at 2 times the variable cost per unit; the VC/unit is estimated to be $3.50; and fixed costs are estimated at $140,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero? 6. Semo Booksellers, specializes in selling paperbacks for $10 each. The variable cost per book is $5. At current annual sales of 10,000 books,...
Problem 9. (a) A new company to produce state-of-the-art car stereo systems is being considered by...
Problem 9. (a) A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business? (b) A venture capital investment group received a proposal from Wireless Solutions...
Your uncle is considering investing in a new company that will produce high quality stereo speakers....
Your uncle is considering investing in a new company that will produce high quality stereo speakers. The sales price would be set at it; the variable cost per unit is estimated to be $60.00; and fixed costs are estimated at $1,000,000. 1.7 times the variable cost per un What sales volume would be required to break even, .e., to have EBIT - zero? O A. 33333.33 O B. 16666.67 o C. 15697.43 O D.28333.33 O E. 23809.52
Perez Company is considering adding a new product. The cost accountant has provided the following data:...
Perez Company is considering adding a new product. The cost accountant has provided the following data: Check my work Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 42 per unit $ 74,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs 6 per unit $58,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider...
Finch Company is considering adding a new product. The cost accountant has provided the following data:...
Finch Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 46 per unit $83,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs $ 7 per unit $ 45,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each requirement...
Thornton Company is considering adding a new product. The cost accountant has provided the following data:...
Thornton Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 48 per unit $ 65,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs $ 6 per unit $ 55,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each...
Munoz Company is considering adding a new product. The cost accountant has provided the following data:...
Munoz Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing $ 45 per unit Expected annual fixed manufacturing costs $ 81,000 The administrative vice president has provided the following estimates: Expected sales commission $ 5 per unit Expected annual fixed administrative costs $ 39,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each...
Cheesy Company The Company is considering the introduction of a new product with the following price...
Cheesy Company The Company is considering the introduction of a new product with the following price and cost characteristics Sales price $150 each Variable cost $60 each Fixed cost $135,000 per year The company expects to sell 2,000 units for the year. 16. Refer Cheesy Company. How many units must be sold to break even? a. 900 b. 2,250 c. 2,000 d. 1,500 17. What effect could an increase (investment) in fixed costs have on the break-even point and the contribution...
Wildhorse Company has decided to introduce a new product. The new product can be manufactured by...
Wildhorse Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Capital-Intensive Labor-Intensive Direct materials $5 per unit $5.50 per unit Direct labor $6 per unit $8.00 per unit Variable overhead per unit $4.50 per unit Fixed manufacturing costs $2,278,000 $1,410,000 $3 Wildhorse' market research...
1.) Polly company makes picture frames and has $3,200 in fixed costs. The unit sales price...
1.) Polly company makes picture frames and has $3,200 in fixed costs. The unit sales price is $20 and their unit variable costs are $8. The company wants to raise price by 10% while keeping cost the same. What would e the new break-even sales revenue amount? Please give the formula and steps on how you solved this problem.
5. A new product is being considered by Semo Enterprises. The sales price would be set at 2 times the variable cost per unit; the VC/unit is estimated to be $3.50; and fixed costs are estimated at $140,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero? 6. Semo Booksellers, specializes in selling paperbacks for $10 each. The variable cost per book is $5. At current annual sales of 10,000 books,...
Problem 9. (a) A new company to produce state-of-the-art car stereo systems is being considered by Jagger Enterprises. The sales price would be set at 1.5 times the variable cost per unit; the VC/unit is estimated to be $2.50; and fixed costs are estimated at $120,000. What sales volume would be required in order to break even, i.e., to have an EBIT of zero for the stereo business? (b) A venture capital investment group received a proposal from Wireless Solutions...
Your uncle is considering investing in a new company that will produce high quality stereo speakers. The sales price would be set at it; the variable cost per unit is estimated to be $60.00; and fixed costs are estimated at $1,000,000. 1.7 times the variable cost per un What sales volume would be required to break even, .e., to have EBIT - zero? O A. 33333.33 O B. 16666.67 o C. 15697.43 O D.28333.33 O E. 23809.52
Perez Company is considering adding a new product. The cost accountant has provided the following data: Check my work Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 42 per unit $ 74,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs 6 per unit $58,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider...
Finch Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 46 per unit $83,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs $ 7 per unit $ 45,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each requirement...
Thornton Company is considering adding a new product. The cost accountant has provided the following data: Expected variable cost of manufacturing Expected annual fixed manufacturing costs $ 48 per unit $ 65,000 The administrative vice president has provided the following estimates: Expected sales commission Expected annual fixed administrative costs $ 6 per unit $ 55,000 The manager has decided that any new product must at least break even in the first year. Required Use the equation method and consider each...
Wildhorse Company has decided to introduce a new product. The new product can be manufactured by either a capital-intensive method or a labor-intensive method. The manufacturing method will not affect the quality of the product. The estimated manufacturing costs by the two methods are as follows. Capital-Intensive Labor-Intensive Direct materials $5 per unit $5.50 per unit Direct labor $6 per unit $8.00 per unit Variable overhead per unit $4.50 per unit Fixed manufacturing costs $2,278,000 $1,410,000 $3 Wildhorse' market research...
Most questions answered within 3 hours.
-
Industry standards suggest that 16% of new vehicles require
warranty service within the first year. Jones...
asked 2 minutes ago -
1) Comment of this statement: “A compiler transforms high-level
language statements directly into object codes”.
asked 5 minutes ago -
Calculate the molality, mole-fraction and percent mass of 28.9M
HF at 25 degrees Celcius of the...
asked 14 minutes ago -
A developmental psychologist believes that children raised in
bilingual families will have higher verbal fluency at...
asked 20 minutes ago -
A fast food meal has 5660 kJ of energy. A person uses energy at
a rate...
asked 32 minutes ago -
The pKb for a generic amine(R-NH2)) in
aqueous solution is 6.30. What is its pKa?
asked 34 minutes ago -
The following reactions have the indicated equilibrium constants
at a particular temperature: N2(g) + O2(g) ⇌...
asked 36 minutes ago -
Please Help ASAP.
1Consider the below code which iterates over a linked
list of n nodes...
asked 52 minutes ago -
Determine the air to fuel ratio of:
Canadian natural gas, with 93.9% methane, 4.2% ethane, 0.3%...
asked 53 minutes ago -
A manufacturer of power tools claims that the average amount of
time required to assemble their...
asked 55 minutes ago -
"electron-withdrawing substituents on carbon encourage back
donation", then on the next page he says that "greater...
asked 1 hour ago -
On December 31, 2016, the shareholders’ equity section of the
balance sheet of R & L...
asked 1 hour ago