Question

Managerial Accounting Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit...

Managerial Accounting
Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit of $80,000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $160,000, how many units must be sold to earn income of $80,000?

120,000 units

80,000 units

30,000 units

1,200,000 units

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

Correct answer---------120,000 units

Working

A Sale Price per unit $                  10.00
B Variable Cost per Unit $                    8.00
C=A x B Unit Contribution $                    2.00
D Total Fixed cost + Desired profit $       240,000.00
E=D/C Breakeven point in units 120000.00
Add a comment
Know the answer?
Add Answer to:
Managerial Accounting Reliable Manufacturing wants to sell a sufficient quantity of products to earn a profit...
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
  • Coronado, Inc. wants to sell a sufficient quantity of products to earn an after-tax profit of...

    Coronado, Inc. wants to sell a sufficient quantity of products to earn an after-tax profit of $27000. If the unit sales price is $10, unit variable cost is $8, and total fixed costs are $79000, how many units must be sold to earn income of $27000? Coronado, Inc. has a tax rate of 40%. 62000 units 63600 units 39500 units 94800 units

  • A company desires to sell a sufficient quantity of products to earn a profit of $260000....

    A company desires to sell a sufficient quantity of products to earn a profit of $260000. If the unit sales price is $20, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $260000? A. 72500 units B. 113000 units C. 216250 units D. 132500 units

  • Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn...

    Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn a profit of $280000. If the unit sales price is $32, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $280000? 48750 units 54000 units 39000 units O 87000 units

  • Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn...

    Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn a profit of $240000. If the unit sales price is $16, unit variable cost is $12, and total fixed costs are $800000, how many units must be sold to earn net income of $240000? 260000 units 215000 units 430000 units 0110000 units

  • Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn...

    Multiple Choice Question 137 A company desires to sell a sufficient quantity of products to earn a profit of $400000. If the unit sales price is $32, unit variable cost is $12, and total fixed costs are $800000, how many units mus be sold to earn net income of $400000? 52500 units 45000 units 90000 units 60000 units

  •             Managerial Accounting                             &nb

                Managerial Accounting                                                                                         24 Points (4 points each) 1. The following data is for two companies, LeBron and Luke: Le Bron Luke Selling price $50/unit $60/unit Variable manufacturing costs $15/unit $12/unit Variable selling and admin. costs $ 5/unit $ 8/unit Fixed manufacturing costs          $100,000 $300,000 Fixed selling and admin. costs     $ 30,000 $ 80,000 (a) Ignoring income taxes, how many units must LeBron sell to break-even? (b) Assuming a tax rate of 25%, do you think the breakeven...

  • Handout 2 ACCT 5140 - Cost Accounting Chapter 3 - Cost Volume Profit (CVP) Analysis Powell...

    Handout 2 ACCT 5140 - Cost Accounting Chapter 3 - Cost Volume Profit (CVP) Analysis Powell Company manufactures a product that it sells for $20 per unit. For 2020 the company expects to produce 30,000 units and sell 28.000 units. Variable manufacturing costs will be $8 per unit and variable selling expense $4 per unit. Total fixed manufacturing costs will be $120,000 and total fixed selling & administrative expense $60,000. The company's tax rate is 20%. Required: 1. Prepare a...

  • Williams & Williams Co. produces plastic spray bottles and wants to earn a before-tax profit of...

    Williams & Williams Co. produces plastic spray bottles and wants to earn a before-tax profit of $1,000,000 next quarter. Variable cost is $2.50 per bottle, fixed costs are $1,975,000, and the selling price is $5.00 per bottle. How many bottles must the company sell to meet its profit goal? Unit sales bottles per quarter Franklin Cards sells greeting cards for $10.00 each and plans to sell 138,000 cards every quarter. The management accountant has determined the company must sell 96,600...

  • 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...

  • Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per...

    Stone Corporation is a manufacturing company that makes small electric motors it sells for $45 per unit. The variable costs of production are $25 per motor, and annual fixed costs of production are $800,000 Required a. How many units of product must Stone make and sell to break even? b. How many units of product must Stone make and sell to earn a $120,000 profit? c. The marketing manager believes that sales would increase dramatically if the price were reduced...

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