1.
Break Even Sales = (in units ) | 4400 units |
Break Even Sales = (in dollars ) | $ 6,16,000.00 |
Working:
Selling Price | $ 140.00 |
Variable Cost | $ 98.00 |
Contribution Margin | $ 42.00 |
Fixed Cost | $ 1,84,800.00 |
Break Even Sales = | Budgeted Fixed Cost / CM |
Break Even Sales = (in units ) | 4400 units |
=184800/42 | |
Break Even Sales = | Budgeted Fixed Cost / CM % |
Break Even Sales = (in dollars ) | $ 6,16,000.00 |
=184800/30% |
2.
If variable expenses increase : Break even point will also increase |
Hence, Break even point will be Higher |
3.
Outback Outfitters | ||||
Contribution Income Statement | Present | Proposed | ||
9000 | Stoves | 11250 | Stoves | |
Total | Per unit | Total | Per unit | |
Sales Revenue | $ 12,60,000.00 | $ 140.00 | $ 14,17,500.00 | $ 126.00 |
Less: Variable Cost | $ 8,82,000.00 | $ 98.00 | $ 11,02,500.00 | $ 98.00 |
Contribution | $ 3,78,000.00 | $ 42.00 | $ 3,15,000.00 | $ 28.00 |
Less: Fixed Cost | $ 1,84,800.00 | $ 1,84,800.00 | ||
Net Income | $ 1,93,200.00 | $ 1,30,200.00 |
4.
Break Even Sales = (in units ) | 2,536 units |
Working:
Target profit | 71000 |
Contribution Margin per unit | 28 |
Break Even Sales = | Budgeted Fixed Cost / CM |
Break Even Sales = (in units ) | 2,536 units |
please explain Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove,...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $201.600 per month Required: 1 What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $184,800 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...
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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $189,000 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $205,800 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...
Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $140 per unit. Variable expenses are $98 per stove, and fixed expenses associated with the stove total $205,800 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? Break-even point in unit sales Break-even point in dollar sales 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in...
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Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $211,500 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $144,000 per month. nts Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the...
Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $150 per unit. Variable expenses are $105 per stove, and fixed expenses associated with the stove total $211,500 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed...