Homework Answers
| ques 1 | ||||
| Let "Q" be quantity to be sold | ||||
| At breakeven profit is 0 | ||||
| S.P * Q - VC * Q -FIXED COSTS = 0 | ||||
| $69*Q- (48+5)* Q - (40000+56000)=0 | ||||
| $69Q-53Q=96000 | ||||
| 16Q=96000 | ||||
| Q=6000 | ||||
| so breakeven in units is 6000 | ||||
| ques 2 | ||||
| Let "SP" be sales price | ||||
| At breakeven profit is 0 | ||||
| S.P * Q - VC * Q -FIXED COSTS = 0 | ||||
| SP*8000- (48+5)*8000 - (40000+56000)=0 | ||||
| 8000*(SP-53)=96000 | ||||
| SP-53=12 | ||||
| SP= | $ 65.00 | |||
| Ques 3 | ||||
| let expenditure be "x" | ||||
| 70*9000- (48+5)*9000 - (40000+56000) - x=0 | ||||
| 153000-96000-x=0 | ||||
| x=57000 | ||||
Add Answer to:
The a 5 per unit $40,000 a. If the sales price is set at $69, how...
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...
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...
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...
Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price...
Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 90 (57) $ 33 Supreme $138 (92) S46 Benson expects to incur annual fixed costs of $206,280. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Benson must sell to break even....
ACCT 2301 Sensitivity Analysis Handout 12 A Tainan Company is considering adding a new product. The...
ACCT 2301 Sensitivity Analysis Handout 12 A Tainan Company is considering adding a new product. The cost accountant has provided the following data. Expected variable cast of manufacturing Expected annual fixed manufacturing costs S47 per unit 578,000 The administrative vice president has provided the following estimates. Expected sales commission Expected annual fixed administrative costs $3 per unit $12,000 The manager has decided that any new product must at least break even in the first year. Required: Consider each requirement separately....
Sales price per unit Total Fixed Costs Variable cost per unit $45 $1,500,00 0 $30 How...
Sales price per unit Total Fixed Costs Variable cost per unit $45 $1,500,00 0 $30 How many units does the company have to sell to break even? How much of sales dollar does the company have to make to break even? The company targets to make $500,000 in profit. How many units does the company have to sell to make this target? (round to the nearest integer) Assume that the income tax rate is 20%. How many units does the...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 108 (61) $ 47 Supreme $138 (88) $50 Benson expects to incur annual fixed costs of $192,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (69) $ 30 Supreme $126 (85) $ 41 3.25 Stuart expects to incur annual fixed costs of $144,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to...
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...
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...
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...
Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 90 (57) $ 33 Supreme $138 (92) S46 Benson expects to incur annual fixed costs of $206,280. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Benson must sell to break even....
ACCT 2301 Sensitivity Analysis Handout 12 A Tainan Company is considering adding a new product. The cost accountant has provided the following data. Expected variable cast of manufacturing Expected annual fixed manufacturing costs S47 per unit 578,000 The administrative vice president has provided the following estimates. Expected sales commission Expected annual fixed administrative costs $3 per unit $12,000 The manager has decided that any new product must at least break even in the first year. Required: Consider each requirement separately....
Sales price per unit Total Fixed Costs Variable cost per unit $45 $1,500,00 0 $30 How many units does the company have to sell to break even? How much of sales dollar does the company have to make to break even? The company targets to make $500,000 in profit. How many units does the company have to sell to make this target? (round to the nearest integer) Assume that the income tax rate is 20%. How many units does the...
Exercise 3-15A Multiple product break-even analysis LO 3-6 Benson Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 108 (61) $ 47 Supreme $138 (88) $50 Benson expects to incur annual fixed costs of $192,800. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and...
Stuart Company manufactures two products. The budgeted per-unit contribution margin for each product follows: Sales price Variable cost per unit Contribution margin per unit Super $ 99 (69) $ 30 Supreme $126 (85) $ 41 3.25 Stuart expects to incur annual fixed costs of $144,480. The relative sales mix of the products is 60 percent for Super and 40 percent for Supreme. Required a. Determine the total number of products (units of Super and Supreme combined) Stuart must sell to...
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...
Most questions answered within 3 hours.
-
Nitrogen dioxide is one of the many oxides of nitrogen (often
collectively called "NOx") that are...
asked 6 minutes ago -
1/ Using ________________ as they are intended is the best
guarantee for consistency and forward compatibility....
asked 16 minutes ago -
Portfolio theory
Given the following information about firm A and the
market:δ
E (Rm)= 12 per...
asked 13 minutes ago -
Albert files his income tax return (showing a total tax of
$23,000) 5½ months after the...
asked 17 minutes ago -
This exercise involves you using imagination and logical
reasoning to occupy the mindset of a visualiser...
asked 26 minutes ago -
What kinds of storage have you seen in use during your own
lifetime?
asked 28 minutes ago -
Practicing Acid Base Calculations
Cameco in Port Hope, Ontario uses hydrofluoric acid to make a
uranium...
asked 35 minutes ago -
The gross payoffs (X) from the investment have the following
probability mass function.
x
p(x)
0...
asked 42 minutes ago -
In an aqueous mixture of aluminum, lead, and iron salts, which
of these will be reduced...
asked 58 minutes ago -
The probability of college students in the US is given by P(A)=
0.06. The probability of...
asked 40 minutes ago -
Water is needed to supply a canal system, which may require up
to 30m3 s -1...
asked 46 minutes ago -
A stubborn dog is being walked on a leash by its owner. At one
point, the...
asked 51 minutes ago