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1. What are the unit requirements given the three parameters
above? 2. Annasam’s annual unit sales average of 1,000 units for
each line. Are there any marketing decisions that should be made
given the above results?
Marketing Management Section 3 Problems Break-Even Analysis Annasam Company is a producer of kayaks. There are two lines of kayaks: one for professional outfitters and the second for committed recreationalists. The cost structure is as follows: Price Line Professional $4,000 Line Amateur $2,800 $900,000...
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HJJ16CILJ Contribution Margin and Break-Even Analysis These problem solutions are due on November 4. Please bring your solutions to class for discussion and to be turned in. Chapter 10 in your text has section on BE analysis and contribution margin. 1. A company is contemplating a new project with expected first year results of as follows: - Sales Revenue $300,000 - Variable Costs of $100,000 - Fixed Costs of $50,000 10,000 units produced and sold Compute the contribution margin percentage...
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Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
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Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products: Economy Standard Deluxe Unit sales 10,000 6,000 4,000 Unit sales price $49 $57 $69 Unit variable cost $30 $32 $36 Assume that total fixed cost is $354,000. a. Compute the net income before income tax based on the sales volumes shown above. Economy Standard Deluxe Unit contribution margin $ 19 $ 25 $ 33 Total contribution margin 190000 150000 132000 Net income before income...
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Need help with this accounting problem please.
Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.) Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations....
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Exercise 18-11 Income reporting and break-even analysis LO P2 Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company's annual fixed costs are $734,400. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. Contribution BLANCHARD COMPANY in Income Statement at Break Even) Percentage of sales Amount (2) Assume the company's fixed costs increase by $138,000. What amount of sales (in dollars) is...
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Question 17 1 pts Baylee Company expected to sell 5000 units. Their break-even is 2800 units. If their selling price is $10 per unit, what is their margin of safety in dollars? $50,000 $28,000 $22,000 $78,000 Question 16 1 pts Keaubie Company has the following: Total Sales: $500,000; Contribution Margin Ratio: 20%; Fixed Costs: $80,000; What is the amount of Keaubie Company's net income or net loss for the period? $100,000 net loss $100,000 net income $20,000 net loss $20,000...
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Exercise 05-11 Income reporting and break-even analysis LO
P2
Blanchard Company manufactures a single product that sells for
$250 per unit and whose total variable costs are $200 per unit. The
company’s annual fixed costs are $770,000.
(1) Prepare a contribution margin income statement for Blanchard
Company showing sales, variable costs, and fixed costs at the
break-even point.
(2) Assume the company’s fixed costs increase by $139,000. What
amount of sales (in dollars) is needed to break even?
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BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $21, fixed costs are $100,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 10,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. What is the firm's gain or loss at sales of 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. b. What is the break-even point...
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PROBLEM 4-22 Break-Even Analysis: Target Profit Analysis; Margin of Safety: CM Ratio ILOI. LO3, LO5, L06, L07) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $30 ....................... $450,000 Variable expenses....... 180.000 Contribution margin..... 270,000 Fixed expenses ........... 216.000 Operating income......... ... $ 54.000 $18 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin...
I need help on the yellow
highlighted area. 
1. What are the unit requirements given the three parameters
above? 2. Annasam’s annual unit sales average of 1,000 units for
each line. Are there any marketing decisions that should be made
given the above results?
Marketing Management Section 3 Problems Break-Even Analysis Annasam Company is a producer of kayaks. There are two lines of kayaks: one for professional outfitters and the second for committed recreationalists. The cost structure is as follows: Price Line Professional $4,000 Line Amateur $2,800 $900,000...
HJJ16CILJ Contribution Margin and Break-Even Analysis These problem solutions are due on November 4. Please bring your solutions to class for discussion and to be turned in. Chapter 10 in your text has section on BE analysis and contribution margin. 1. A company is contemplating a new project with expected first year results of as follows: - Sales Revenue $300,000 - Variable Costs of $100,000 - Fixed Costs of $50,000 10,000 units produced and sold Compute the contribution margin percentage...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Multiple Product Break-Even and Net Income Planning Grand Company manufactures and sells the following three products: Economy Standard Deluxe Unit sales 10,000 6,000 4,000 Unit sales price $49 $57 $69 Unit variable cost $30 $32 $36 Assume that total fixed cost is $354,000. a. Compute the net income before income tax based on the sales volumes shown above. Economy Standard Deluxe Unit contribution margin $ 19 $ 25 $ 33 Total contribution margin 190000 150000 132000 Net income before income...
Need help with this accounting problem please.
Required information Problem 21-4A Break-even analysis; income targeting and forecasting LO C2, P2, A1 [The following information applies to the questions displayed below.) Astro Co. sold 20,300 units of its only product and incurred a $78,798 loss (ignoring taxes) for the current year as shown here. During a planning session for year 2018's activities, the production manager notes that variable costs can be reduced 50% by installing a machine that automates several operations....
Exercise 18-11 Income reporting and break-even analysis LO P2 Blanchard Company manufactures a single product that sells for $240 per unit and whose total variable costs are $192 per unit. The company's annual fixed costs are $734,400. (1) Prepare a contribution margin income statement for Blanchard Company at the break-even point. Contribution BLANCHARD COMPANY in Income Statement at Break Even) Percentage of sales Amount (2) Assume the company's fixed costs increase by $138,000. What amount of sales (in dollars) is...
Question 17 1 pts Baylee Company expected to sell 5000 units. Their break-even is 2800 units. If their selling price is $10 per unit, what is their margin of safety in dollars? $50,000 $28,000 $22,000 $78,000 Question 16 1 pts Keaubie Company has the following: Total Sales: $500,000; Contribution Margin Ratio: 20%; Fixed Costs: $80,000; What is the amount of Keaubie Company's net income or net loss for the period? $100,000 net loss $100,000 net income $20,000 net loss $20,000...
BREAK-EVEN ANALYSIS The Warren Watch Company sells watches for $21, fixed costs are $100,000, and variable costs are $11 per watch. a. What is the firm's gain or loss at sales of 10,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. What is the firm's gain or loss at sales of 20,000 watches? Enter loss (if any) as negative value. Round your answer to the nearest cent. b. What is the break-even point...
PROBLEM 4-22 Break-Even Analysis: Target Profit Analysis; Margin of Safety: CM Ratio ILOI. LO3, LO5, L06, L07) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Total Per Unit $30 ....................... $450,000 Variable expenses....... 180.000 Contribution margin..... 270,000 Fixed expenses ........... 216.000 Operating income......... ... $ 54.000 $18 Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin...