Homework Answers
Break even sales unit = Fixed cost / Contribution margin per unit
Fixed cost = Total fixed manufacturing overhead + Total other fixed expense = $184000 + $203000 = $387000
Contribution margin per unit = Sales price - Variable cost per unit
Variable cost per unit = Total variable cost / Number of unit
= ($240000 + $280000)/55000 units
= $520000 / 55000 units = 9.4545
Contribution margin = $42 - $9.45 = $32.5455
Break even units = $387000 / $32.5455
= 11891.044 i.e 11892 units.
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Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every...
Please show explanation. Ms. Sophia Jones, the company president, has heard that there are multiple breakeven...
Please show explanation.
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Denton Company manufactures and sells a single product. Cost data for the product are given: Variable...
Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
10
Variable manufacturing overhead
3
Variable selling and administrative
2
Total variable cost per unit
$
19
Fixed costs per month:
Fixed manufacturing overhead
$
54,000
Fixed selling and administrative
175,000
Total fixed cost per month
$
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for July and August, the first...
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Please show explanation.
Ms. Sophia Jones, the company president, has heard that there are multiple breakeven points for every product. She does not believe this and has asked you to provide the evidence of such a possibility. Some information about the company for 2017 is as follows: Total fixed manufacturing overhead Total other fixed expenses Total variable manufacturing expenses Total other variable expenses Units produced Budgeted production Units sold Selling price $184,000 $200,000 $270,000 $290,000 70,000 units 70,000 units 50,000...
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Denton Company manufactures and sells a single product. Cost
data for the product are given:
Variable costs per unit:
Direct materials
$
4
Direct labor
10
Variable manufacturing overhead
3
Variable selling and administrative
2
Total variable cost per unit
$
19
Fixed costs per month:
Fixed manufacturing overhead
$
54,000
Fixed selling and administrative
175,000
Total fixed cost per month
$
229,000
The product sells for $54 per unit. Production and sales data
for July and August, the first...
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