BEP = Fixed cost / contribution margin | |||
Crossover point = FC1-FC2 / CM2-CM21 | |||
Process | 1 | 2 | 3 |
Fixed cost | 2000 | 1200 | 600 |
Variable cost | 8 | 10 | 12 |
Contribution margin | 8 | 10 | 12 |
BEP | 250 | 120 | 500 |
Crossover point | 400 | 300 |
2. cross over point from B to C is 300 units while from C to A, it is 400 units.
3. It can be seen that from 1 to 300, process B is more economical. Form 301 to 400, process C is more economical while for units 401 or more, process A is more economical.
Process A has fixed costs of $2000 and variable costs of $8 per unit. Process B...
Barrymore Industries has monthly fixed costs totaling $30,000 and variable costs of $5 per unit. Each unit of product is sold for $20. What is the break-even point in units? 1,200 6,000 1,500 2,000 Barrymore Industries has monthly fixed costs totaling $30,000 and variable costs of $5 per unit. Each unit of product is sold for $20. How many units must be sold to earn a monthly profit of $45,000? 2,250 3,000 5,000 2,000 Barrymore Industries has monthly fixed costs...
A company has monthly fixed costs of $135,000. The variable costs are $5 per unit. If the sales price of a unit is $12 and we sell 7,500 units, the company's average fixed costs per unit will be O A. $23 per unit. OB. $7 per unit. ° C. $18 per unit. D. $5 per unit.
$84 per unit. selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000, and fixed selling and Determine the break-even point in units and dollars using each of the following approaches: b. Use the c eferencesd. Prepare a Req A to C 29 5 Ritchie Manufacturing Company makes a product that it sells for $160 per unit. The company incurs variable manufacturin $84 per unit. Variable selling expenses are $12 per unit, annual fixed manufacturing costs are $470,000,...
Selling Costs per unit and variable costs per unit are $8 and $5 respectively. Fixed production overhead for June is $900. Units produced and sold are 600 and 450 units respectively. Nil inventory was held at the beginning of June. Which of the following is the difference in production margin reported for June under absorption costing as compared to that under marginal costing? a) 450 higher under absorption costing b) 225 higher under absorption costing c) 150 higher under absorption...
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
14. Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the protit change in the short term if you reduce the price to $46? A. decrease by $3,240 B. decrease by S840 C. no change D. increase by $360 E. increase by $1,800
A manufacturer has fixed costs of $10000, a variable cost of $10 per unit of output, and break even volume of 50000 units what should the manufacturers unit cost be in order to break even?
stuggling. please hekp Question 10 2.5 pts Fixed costs are unknown. Variable costs are $20 per unit. At current selling price of $50, sales volume is 600 units. If you reduce the price to $46, sales volume will increase to 660 units. How much will the profit change in the short term if you reduce the price to $46? decrease by $3,240 O increase by $360 O increase by $1,800 O no change decrease by $840
8. When activity volume increases in the short term, A. fixed costs per unit remain unchanged and variable costs per unit increase B. fixed costs per unit increase and variable costs per unit remain unchanged C. fixed costs per unit remain unchanged and variable costs per unit decrease D. fixed costs per unit decrease and variable costs per unit remain unchanged E. fixed costs per unit decrease and variable costs per unit increase
Assume total fixed costs of $156800, variable costs per unit of $8, and contribution margin per unit of $4. How many units must be sold to meet a target net income of $49000, assuming a tax rate of 20%? 25725 O 51450 49000 O 54513