Assume the average unit sales price is $2.00 and the average unit cost is $1.10 for beverages.
Fixed costs for the business are $90,000 per year.
BREAK-EVEN POINTS:
UNIT SALES = Fixed Costs ÷ (Sales price per unit – Variable costs per unit)
= 90000 / 0.90
= 100,000 units.
TOTAL SALES DOLLARS = Fixed Costs ÷ Contribution Margin.
= 90000 / (100,000 x 0.90)
= $1
________________________________________________________________________________
(B) IF SALES PRICE INCREASED BY 8%
Current sales price = $2 per unit
Increase (@8%) = $0.16
New sales price = $2.16 per unit.
SALES | 2,16,000 |
Variable costs | (1,10,000) |
Fixed Costs | (90,000) |
PROFIT | 16,000 |
________________________________________________________________________________
(C) INCREASE IN SALES VOLUME BY 10%
Old sale volume = 100,000 units
Increase (@10%) = 10,000 units
New sales volume = 110,000 units.
SALES | 2,20,000 |
Variable costs | 1,21,000 |
Fixed Costs | 90,000 |
PROFIT | 9,000 |
________________________________________________________________________________
(D) INCREASE IN SALES PRICE @8% & SALES VOLUME @10% & DECREASE IN FIXED COSTS @5%.
New sales price = $2.16 per unit.
New sales volume = 110,000 units.
New fixed costs = $85,500
SALES | 2,37,600 |
Variable costs | 1,21,000 |
Fixed Costs | 85,500 |
PROFIT | 31,100 |
________________________________________________________________________________
Assume the average unit sales price is $2.00 and the average unit cost is $1.10 for...
assume the average unit sales price is $2.00 and the average unit cost is $1.10 for beverages. what is the effect of selling merchandise along with beverages on breakeven? fix cost is $90,000
assume a sales price per unit of $25 variable cost per unit $15 and total fixed costs of $15480. what is the breakeven point in dollars
ABC, Inc. manufactures three products: A, B, and C. Relevant data: Unit Unit Sales price Var Cost Sales in units A 100 50 7,000 B 150 90 2,000 C 200 90 1,000 Fixed costs are $500,000. Required: a) What is the amount of profit at this sales volume? b) What is the breakeven point (in sales dollars and units per product) at this sales mix? c) What sales volume in dollars must be achieved to earn a profit of $200,000?...
Sales price is $30 per unit, Variable cost is $21 per unit, Fixed Cost is $90,000 per month, sales Volume for june is 12,000 units, How many units need to be sold to achieve a profit of $72,000?
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...
Assume a sales prise per unit of $25. variable cost per unit $15, and total fixed costs of $20880. If no units are sold, how much cost would the company incur? The amount of variable costs at the breakeven point. $31320 O $20880 Sveforster Attempts: 0 of 1 used Submit Answer
Assume a sales price per unit of $20, variable cost per unit of $16, and total fixed costs of $168,000. What is the breakeven point? a. 420,000 units b. $420,000 c. 840,000 units d. $840,000 (answer a is incorrect; also please show all steps in calculating the correct answer)
Assume a sales price per unit of $20, variable cost per unit $16, and total fixed costs of $208320. What is the breakeven point in units? 52000 units O 5787 units 0 13020 units 10416 units Sve for later Attempts: 0 of 1 used Submit Answer
15. Price is $10 per unit. At current sales volume, cost of goods sold (COGS) is $7 per unit and selling. general, and administrative (SG&A) costs are $5 per unit. Variable costs are $4 per unit. Total fixed costs are unknown. How much will the profit change in the short term if we sell 10 more units? Assume that the new volume is in the relevant range. A Jucrease by $20 B. increase by $30 Cincrease by $10 b. increase...
assume that variable cost increase to 45% of the current sales price and fix costs increase by $12,000 per month. If Sunland were to raise its sales price 10% to cover these new costs, but the number of blankets sold were to drop by 6% what would be the new annual operating income? h 3: Homework Question 3 of 4 4.17/5.25 View Policies Show Attempt History Current Attempt in Progress Sunland Monograms sells stadium blankets that have been monogrammed with...