Question

Question 5 3 pts Grelden Tools builds metal storage boxes. The investment in plant and equipment is $200,000. The variable coQuestion 5 3 pts Grelden Tools builds metal storage boxes. The investment in plant and equipment is $200,000. The variable co

0 0
Add a comment Improve this question Transcribed image text
Answer #1

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

Add a comment
Know the answer?
Add Answer to:
Question 5 3 pts Grelden Tools builds metal storage boxes. The investment in plant and equipment...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • A small firm builds galvanized swing sets. The investment in plant and equipment is $200,000. The...

    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...

    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...

    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...

    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...

    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...

    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...

    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...

  • answer all of the questions and show the solution   yrene Products manufactures recreational equipment. One of...

    answer all of the questions and show the 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,...

    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,...

    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)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT