The Saunders Company is trying to do some planning for the coming month. The following information...
The Saunders Company is trying to do some planning for the coming month. The following information was gathered from the last month.
| Sales revenue | $300,000 |
| Fixed manufacturing expenses | 110,000 |
| Fixed marketing expenses | 20,000 |
| Fixed administrative expenses | 18,500 |
| Sales price | $20/unit |
| Variable manufacturing costs | $7/unit |
| Variable marketing costs | $3/unit |
How many units must Saunders sell next month to break even?
Homework Answers
For calculation of Break even point
Break even point= fixed cost/ contribution per unit
Contribution per unit= sales price per unit - variable cost per unit
Contribution per unit= $20-($7+$3)= $10
Fixed cost=$110000+$20000+$18500= $148500
Break even point=$148500/$10 =14850 units
To reach break even cost saunders has to sell 14850 units
Add Answer to:
The Saunders Company is trying to do some planning for the
coming month. The following information...
The Saunders Company is trying to do some planning for the coming month. The following information...
The Saunders Company is trying to do some planning for the coming month. The following information was gathered from the last month. Sales revenue $300,000 Fixed manufacturing expenses 110,000 Fixed marketing expenses 20,000 Fixed administrative expenses 18,500 Sales price $20/unit Variable manufacturing costs $7/unit Variable marketing costs $2/unit If Saunders wants to earn operating income of $44,000 next month, how many units must be sold?
The Saunders Company is trying to do some planning for the coming month. The following information...
The Saunders Company is trying to do some planning for the coming month. The following information was gathered from the last month. Sales revenue $300,000 Fixed manufacturing expenses 110,000 Fixed marketing expenses 20,000 Fixed administrative expenses 18,500 Sales price $20/unit Variable manufacturing costs $7/unit Variable marketing costs $3/unit If Saunders is able to generate a 20% increase in sales volume next month through a $24,000 advertising campaign, what is the expected operating income?
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Jordan Company produces a single product. The projected income statement for the coming month, based on...
Jordan Company produces a single product. The projected income statement for the coming month, based on sales of 20,000 units is: Sales $200,000 Less: Variable costs 140,000 Contribution margin $ 60,000 Less: Fixed costs 45,000 Operating income $ 15,000 Instructions: 1. Compute the unit contribution margin and the number of units that must be sold to break even. Suppose that 3,000 units are sold above the break-even point. What is the profit? 2. Compute the contribution margin ratio and the...
Waterways Problem 05 The Vice President for Sales and Marketing at Waterways Corporation is planning for...
Waterways Problem 05 The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company’s profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to mass-produce any of them. Waterways markets a simple water control and timer that it...
The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks
The Vice President for Sales and Marketing at Waterways Corporation is planning for production needs to meet sales demand in the coming year. He is also trying to determine how the company's profits might be increased in the coming year. This problem asks you to use cost-volume-profit concepts to help Waterways understand contribution margins of some of its products and decide whether to massproduce any of them. Waterways markets a simple water control and timer that it mass-produces. Last year,...
2. The following information is available for the Sigma Company for the month of July: Static...
2. The following information is available for the Sigma Company for the month of July: Static Budget Actual Units 5,000 5,100 Sales revenue $60,000 $58,650 Variable manufacturing costs $15,000 $16,320 Fixed manufacturing costs $18,000 $17,000 Variable marketing and administrative expense $10,500 $10,000 Fixed marketing and administrative expense $12,000 $11,000 The total sales volume variance for the month of July would be a. $100 favorable. b. $700 favorable. c. 1,350 unfavorable. d. $2,550 unfavorable.
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
Edinburg Company Accounting information for planning and decision-making The Directors of Edinburg Company are planning for the next year (2020). They want to develop a strategic plan based on the capacity and opportunities of their business. The accountant provided the following forecast for 2020: Budgeted operating activities Sales - $ 800,000 Cost of sales (manufacturing costs) Materials 300,000 Labour 110,000 Variable overheads 50,000 Fixed overheads 60,000 $ 520,000 Selling LLL L Commission* 80,000 Variable expenses 60,000 Fixed expenses 20,000 $...
2. The following information is available for the Sigma Company for the month of July: Static Budget Actual Units 5,000 5,100 Sales revenue $60,000 $58,650 Variable manufacturing costs $15,000 $16,320 Fixed manufacturing costs $18,000 $17,000 Variable marketing and administrative expense $10,500 $10,000 Fixed marketing and administrative expense $12,000 $11,000 The total sales volume variance for the month of July would be a. $100 favorable. b. $700 favorable. c. 1,350 unfavorable. d. $2,550 unfavorable.
Most questions answered within 3 hours.
-
Tucson Machinery, Inc., manufactures numerically controlled
machines, which sell for an average price of $0.5 million...
asked 10 minutes ago -
Review the referenced paper by Melse (2008). Describe the
research question being addressed. Discuss the methods...
asked 15 minutes ago -
Please do all parts. I don't want to hear your as per guidelines
stuff. Do if...
asked 25 minutes ago -
1. Why is Hardy-Weinberg Theorum important? How can we
test whether a population is in H-W...
asked 25 minutes ago -
A sample of 3 is selected from 9 cards. How many permutation is
possible? Show Work.
asked 38 minutes ago -
Identify a commercial data mining software product (e.g., SAS)
and an open-source data mining product (e.g.,...
asked 41 minutes ago -
Following are the capital account balances for the William,
Jennings, and Bryan partnership:
William (40% of...
asked 32 minutes ago -
An investment project provides cash inflows of $770 per year for
11 years.
a. What is...
asked 41 minutes ago -
About the lecture of human resource management, give me the
process and schedule of how the...
asked 39 minutes ago -
A fair D10 die is rolled 100 times. What is the probability of
rolling five 1s,...
asked 52 minutes ago -
Other than hydrogen bonding, what is the major interaction that
causes proteins to fold into compact,...
asked 52 minutes ago -
In an RC circuit, the total resistance is 1 k ohm and the
battery voltage is...
asked 58 minutes ago