Contribution margin per storage box = Selling price - Variable cost = $1000 - $500 = $500
Break even = Fixed costs / Contribution margin per storage box
Break even = $200,000 / $500
Break even = 400 storage boxes
Question 5 3 pts Grelden Tools builds metal storage boxes. The investment in plant and equipment...
A small firm builds galvanized swing sets. The investment in plant and equipment is $200,000. The variable cost per swing set is $500. The selling price of the swing set is S1000. How many swing sets would have to be sold for the firm to break even?
Bait-N-Tackle sells fishing equipment. One of the company’s products, a basic tackle box, sells for $48 per unit. Variable expenses are $36 per tackle box, and fixed expenses associated with the tackle box total $18,000 per month. Required: 1. Compute the company’s break-even point in number of tackle boxes and in total sales dollars. 2. If the variable expenses per tackle box increase as a percentage of the selling price, will it result in a higher or a lower break-even...
Please help with all 3 parts! Salvadores Manufacturing builds and sells snowboards, skis and poles. The sales price and variable cost for each follows: Product Selling Price per Unit Variable Cost per Unit Snowboards $340 $160 Skis $380 $210 Poles $50 $30 a. Their sales mix is reflected in the ratio 7:3:2. What is the overall unit contribution margin for Salvadores with their current product mix? Product Selling Price per Unit Variable Cost per Unit Snowboards $340 $190 Skis $390 ...
Sarah Drogo, president of Storage, Inc. a company that makes a wide variety of storage boxes for home and office use, is thinking about adding a new line of small plastic storage boxes. This would require a new technology. The company currently uses predominantly cardboard of various weights that are used in its other products. Since this is a big move for the company, Sarah wants to make sure that all of the financial and nonfinancial implications are understood before...
Question 15 4 pts A company has a unit contribution margin of $120 and a contribution margin ratio of 40%. What is the unit selling price? Cannot be determined $200 $300 $48 Question 16 A division sold 200,000 calculators during 2017: Sales $2,000,000 Variable costs: Materials $380,000 Order processing 150,000 Billing labor 110,000 Selling expenses 60,000 Total variable costs 700,000 Fixed costs 1,000,000 How much is the unit contribution margin? $6.50 $8.50 $3.50 $1.00 Question 17 4 pts At the...
1. Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $150,000 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...
Exercise 3-17 Break-Even and Target Profit Analysis [LO3-4, LO3-5, LO3-6] Outback Outfitters sells recreational equipment. One of the company's products, a small camp stove, sells for $110 per unit. Variable expenses are $77 per stove, and fixed expenses associated with the stove total $161,700 per month. Required: 1. Compute the company's break-even point in unit sales and in dollar sales. Break-Even Point Number of stoves Total sales dollars 2. If the variable expenses per stove increase as a percentage of...
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solution
yrene Products manufactures recreational equipment. One of the company's products, a skateboard Over the past year the company sold 48,000 skateboards, with the following operating results Sales (48,000 skateboards) sells for $35 The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $24 50 per skateboard of which 70% direct labor cost S 1.680,000 1,176,000 Variable expenses Contribution margin 504,000...
Problem 5-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO5-1, LO5-3, LO5- 4, LO5-5, LO5-6, LO5-8] Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 60,000 of these balls, with the following results: Sales (60,000 balls) Variable...
Problem 6-20 CVP Applications: Break-Even Analysis; Cost Structure; Target Sales [LO6-1, LO6-3, LO6- 4, LO6-5, LO6-6, LO6-8] Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 36,000 of these balls, with the following results: $ Sales (36,800 balls)...