Break-Even Sales
Currently, the unit selling price of a product is $290, the unit variable cost is $240, and the total fixed costs are $765,000. A proposal is being evaluated to increase the unit selling price to $330.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased and all
costs remain constant.
units
Computation of Break even points in units:
Break even points = Fixed cost / Contribution margin per unit
Contribution margin per unit = Sale price - Variable cost per unit
a.
Contribution margin per unit = $290 - $240 = $50
Break even points = $765000 / $50 = 15300 Units
b.
Contribution margin = $330 - $240 = $90
Anticipated Break even points = $765000 / $90 = 8500 units.
Break-Even Sales Currently, the unit selling price of a product is $290, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $260, the unit variable cost is $210, and the total fixed costs are $640,000. A proposal is being evaluated to increase the unit selling price to $290. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
Break-Even Sales Currently, the unit selling price of a product is $350, the unit variable cost is $290, and the total fixed costs are $960,000. A proposal is being evaluated to increase the unit selling price to $390. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $390, and all costs remain constant. units
Break-Even Sales Currently, the unit selling price of a product is $240, the unit variable cost is $200, and the total fixed costs are $364,000. A proposal is being evaluated to increase the unit selling price to $270. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $270, and all costs remain constant. units
Break-Even Sales Currently, the unit selling price of a product is $380, the unit variable cost is $310, and the total fixed costs are $1,155,000. A proposal is being evaluated to increase the unit selling price to $420. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
Break-Even Sales Currently, the unit selling price of a product is $370, the unit variable cost is $300, and the total fixed costs are $1,078,000. A proposal is being evaluated to increase the unit selling price to $410. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units
21-3 Exercises & Problems Break-Even Sales Currently, the unit selling price of a product is $210, the unit variable cost is $170, and the total fixed costs are $432,000. A proposal is being evaluated to increase the unit selling price to $230. a. Compute the current break-even sales (units). units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $230, and all costs remain constant. units
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $142, a unit variable cost of $71, and fixed costs of $418,900. Required: 1. Compute the anticipated break-even sales (units). units 2. Compute the sales (units) required to realize a target profit of $220,100. units 3. Construct a cost-volume-profit chart on paper assuming maximum sales of 11,800 units within the relevant range. From your chart, indicate whether each of the following sales levels...
Contribution Margin and Contribution Margin Ratio For a recent year, Wicker Company-owned restaurants had the following sales and expenses (in millions): Sales $30,100 Food and packaging $11,409 Payroll 7,600 Occupancy (rent, depreciation, etc.) 5,791 General, selling, and administrative expenses 4,400 $29,200 Income from operations $900 Assume that the variable costs consist of food and packaging, payroll, and 40% of the general, selling, and administrative expenses. a. What is Wicker Company's contribution margin? Round to the nearest million. (Give answer in...
Break-Even Sales and Cost-Volume-Profit Chart For the coming year, Cleves Company anticipates a unit selling price of $94, a unit variable cost of $47, and fixed costs of $366,600. Required: 1. Compute the anticipated break-even sales in units. units 2. Compute the sales (units) required to realize income from operations of $183,300. units 3. Construct a cost-volume-profit chart, assuming maximum sales of 15,600 units within the relevant range. From your chart, indicate whether each of the following sales levels would...
Break-Even Sales and Cost-Volume-Profit Graph For the coming year, Bernardino Company anticipates a unit selling price of $144, a unit variable cost of $72, and fixed costs of $640,800. Instructions: 1. Compute the anticipated break-even sales in units. units 2. Compute the sales (units) required to realize operating income of $244,800. units 3. Construct a cost-volume-profit graph on paper, assuming maximum sales of 17,800 units within the relevant range. From your chart, indicate whether each of the following sales levels...