Homework Answers
1) Break-even point in units = Fixed costs / Unit contribution margin
Break-even point in units = $240,000 / ($5 - $3)
Break-even point in units = 120,000 units
2) Break-even sales = Fixed costs / Contribution margin ratio
Break-even sales = $36,000 / 0.24
Break-even sales = $150,000
Margin of safety as a percent of sales = (Actual sales - Break-even sales) / Actual sales
Margin of safety as a percent of sales = ($200,000 - $150,000) / $200,000
Margin of safety as a percent of sales = 0.25 or 25%
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A company sells a product which has a unit sales price of $5, unit variable cost...
I. A company sells a product which has a unit sales price of $10, unit variable...
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and...
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Zachary Company makes a product that sells for $30 per unit. The company pays $11 per...
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per unit for the variable costs of the product and Incurs annual fixed costs of $165,300. Zachary expects to sell 22,100 units of product Required Determine Zachary's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e, 0.2345 should be entered as 23.45) Margin of safety % Reld Company is considering the production of a new product. The expected variable...
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Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost...
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The following information relates to the only product sold by Harper Company. $ 45 Sales price...
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Information concerning a product produced by Zachary Company appears as follows: Sales price per unit Variable...
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Zhao Co. has fixed costs of $275,600. Its single product sells for $161 per unit, and...
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
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Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs...
Question 15: Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $120,000 O b. $100,000 O c. $200,000 O d. $90,000 ge Next page
I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total...
Zhao Co. has fixed costs of $245,000. Its single product sells for $155 per unit, and variable costs are $106 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales. Dollars Percent Margin of safety % US-Mobile manufactures and sells two products, tablet computers and smartphones, in the ratio of 4:2. Fixed costs are $90,860, and the contribution margin per composite unit is $118. What number...
Zachary Company makes a product that sells for $30 per unit. The company pays $11 per unit for the variable costs of the product and Incurs annual fixed costs of $165,300. Zachary expects to sell 22,100 units of product Required Determine Zachary's margin of safety expressed as a percentage. (Round your answer to 2 decimal places. (.e, 0.2345 should be entered as 23.45) Margin of safety % Reld Company is considering the production of a new product. The expected variable...
Question 15 2.5 pts A product sells for $200 per unit, and its variable costs per unit are $130. Totalfixed costs are $420,000. If the firm wants to earn $35,000 pretax income, how many units must be sold? 6,500 6,000 O 500. 5,000 5,500 2.5 pts Question 16 MacBook Air $1,700,000 Question 14 2.5 pts Henderson Co. has fixed costs of $36,000 and a contribution margin ratio of 24%. If expected sales are $200,000, what is the margin of safety...
Information concerning a product produced by Ender Company appears here: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs 174 $ 86 $563,200 Required Determine the following: a. Contribution margin per unit. Contribution margin per unit b. Number of units that Ender must sell to break even. Break-even in units c. Sales level in units that Ender must reach to earn a profit of $299,200. Sales in units d. Determine the margin of safety...
The following information relates to the only product sold by Harper Company. $ 45 Sales price per unit Variable cost per unit Fixed costs per year 27 228,000 a. Compute the contribution margin ratio and the dollar sales volume required to break even. b. Assuming that the company sells 20,000 units during the current year, compute the margin of safety (in dollars). a. Contribution margin ratio Break even sales dollars b. Margin of safety (in dollars)
Information concerning a product produced by Zachary Company appears as follows: Sales price per unit Variable cost per unit Total annual fixed manufacturing and operating costs $ 162 $ 82 $536,000 Required Determine the following: a. Contribution margin per unit. b. Number of units that Zachary must sell to break even. c. Sales level in units that Zachary must reach to earn a profit of $240,000. a. Contribution margin per unit b. Break-even in units c. Required sales in units
Zhao Co. has fixed costs of $275,600. Its single product sells
for $161 per unit, and variable costs are $109 per unit. The
company expects sales of 10,000 units. Prepare a contribution
margin income statement for the year ended December 31, 2019.
Exercise 21-8 Contribution margin LO A1 A jeans maker is designing a new line of jeans called Slims. The jeans will sell for $330 per pair and cost $260.70 per pair in variable costs to make. (Round your...
6. DEF Company manufactures and sells a single product that sells for $450 per unit; varialble costs are $270. Annual fixed costs are $800,000. The products current break-even point in dollars is $2,000,000 and sales are expected to be $4,000,000. (5 Points) The current margin of safety in dollars is: (5 Points) The current margin of safety percentage is: 7. XYZ Company manufactures and sells a single product that sells for $400 per unit; variable costs are $200. Annual fixed...
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