ZuoTi.Pro
Question

What is the breakeven point in sales dollars if the variable cost increases by 10%?
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales S 35,000,000 Variable expenses 28,000,000 Fixed expenses 3,500,000 Total expenses 31,500,000 Operating profit $ 3,500,000

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer Particulars EXIStIngRevised Existing Sales Operating expenses Variable Expenses Fixed cost S 35,000,000 35,000,000 28,

0 0
Add a comment
Know the answer?
Add Answer to:
What is the breakeven point in sales dollars if the variable cost increases by 10%? Lawn...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming...

    Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales Operating expenses: Variable expenses Fixed expenses Total expenses $32,000,000 $20,800,000 5,600,000 26,400,000 $ 5,600,000 Operating profit Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $6,440,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in...

  • Lawn Master Company, a manufacturer of riding lawn mowers, has a projected Income for the coming...

    Lawn Master Company, a manufacturer of riding lawn mowers, has a projected Income for the coming year as follows: $ 46,000,000 Sales Operating expenses Variable expenses Pixed expenses Total expenses Operating profit $32,200,000 7,500,000 39,700,000 $ 6,300,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $8,000,000. (Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the...

  • Sales $ 35,000,000 Operating expenses Variable expenses Fixed expenses $28,000,000 3,500,000 Total expenses 31,500,000 Operating profit...

    Sales $ 35,000,000 Operating expenses Variable expenses Fixed expenses $28,000,000 3,500,000 Total expenses 31,500,000 Operating profit $ 3,500,000 1. Determine the breakeven point in sales dollars Breakeven point in sales dollars 17,500,000 2. Determine the required sales in dollars to earn a before-tax profit of $4,500,000. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) Required sales in dollars $ 40,000,000 3. What is the breakeven point in sales dollars if the variable cost increases...

  • The following sales and cost data (in thousands) are for two companies in the transportation industry:...

    The following sales and cost data (in thousands) are for two companies in the transportation industry: Company A Percent of Amount Sales $160,000 100% 80,000 50 $ 80,000 28,000 $ 52,000 Sales Variable costs Contribution margin Fixed costs Operating profit Company B Percent of Amount Sales $ 160,000 32,000 $ 128,000 80% 53,000 $ 75,000 100% 20 50% Required: 1-a. Calculate the degree of operating leverage (DOL) for each company. 1-b. If sales increase from the present level, which company...

  • Problem 8-04 (Algorithmic) Lawn King manufactures two types of riding lawn mowers. One is a low-cost...

    Problem 8-04 (Algorithmic) Lawn King manufactures two types of riding lawn mowers. One is a low-cost mower sold primarily to residential home owners; the other is an industrial model sold to landscaping and lawn service companies. The company is interested in establishing a pricing policy for the two mowers that will maximize the gross profit for the product line. A study of the relationships between sales prices and quantities sold of the two mowers has validated the following price-quantity relationships....

  • a. What is Madden's breakeven point in units sold for the next? b. If Madden wants...

    a. What is Madden's breakeven point in units sold for the next? b. If Madden wants $4.5 million in pre-tax profit, what is the required level of sales in dollars? ENGG433/956-Spring-2019-Week-7 Submission Question 4.26 4-26 Breakeven; targeted profit; ROI targeted profit LO2, 3 Madden Company projected its income before taxes for next year as shown here. Madden is subject to a 40 per cent income tax rate. Sales (160,000 units) $8,000,000 Cost of goods sold Variable costs $2,000,000 Fixed-costs $3,000,000...

  • 7.If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and...

    7.If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and unit sales increase by 150 units, what would be the net operating income? 8.What is the break-even point in unit sales? 9.What is the break-even point in dollar sales? 10.How many units must be sold to achieve a target profit of $8,400? 11.What is the margin of safety in dollars? 12.What is the margin of safety percentage? 13.What is the degree of operating leverage?...

  • Marshall Company had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct...

    Marshall Company had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct labor $1,500, direct materials $1,000, variable factory overhead $1,100, and fixed factory overhead $500. Selling expenses totaled $1,500 ($500 variable and $1,000 fixed), and administrative expenses totaled $1,600 ($410 variable and $1,190 fixed). Operating income was $2,800. Round all final answers to nearest dollar or whole number. Requirements: What is the break-even point in sales dollars and in units if the fixed factory overhead...

  • Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are...

    Stratford Company distributes a lightweight lawn chair that sells for $40 per unit. Variable expenses are $18 per unit, and fixed expenses total $220,000 annually. Results for last year are as follows: Sales (20,000 units) Variable expenses $ 800,000 360,000 Contribution margin Fixed expenses 440,000 220,000 Operating income $ 220,000 Required: 1. Calculate the company's CM ratio and its break-even point in sales dollars and in units. CM ratio Break-even point in sales dollars Break-even point in units 2. If...

  • Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example...

    Total Revenue Profit Total Cost CVP Analysis Variable Cout Fed Cost Units Sold In Class Example Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $60 per unit. Variable selling expenses are $18 per unit, annual fixed manufacturing costs are $480,000, and fixed selling and administrative costs are $240,000 per year. (1) Calculate the breakeven point in units and sales dollars. (2) Prepare a contribution margin income statement to...

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