A. Sales need to increase to $8,500, or by $3,500, to reach break-even. B. Sales need...
| A. |
Sales need to increase to $8,500, or by $3,500, to reach break-even. |
|
| B. |
Sales need to increase to $21,429, or by $15,730, to reach break-even. |
|
| C. |
Sales need to increase to $16,625, or by $10,925, to reach break-even. |
|
| D. |
Sales need to increase to $11,659, or by $5,659, to reach break-even. |
|
| E. |
Sales need to increase to $8,000, or by $2,300, to reach break-even. |
QUESTION 5
You are part of a new product team and are being asked to determine how much of anincrease in sales will be needed before the product will be profitable. Price changes are not allowed. Ignore taxes.
You have the following information:
Current Sales $5,700
Cost of Goods $4,500 (Includes $1,000 of Depreciation)
SG&A $3,500
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Sales need to increase to $8,500, or by $3,500, to reach
break-even.
B.
Sales need...
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to...
Break-Even Analysis Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is Break-Even Units = Total Fixed Costs / ( Unit Selling Price − Unit Variable Cost ) 1. Use the formula to calculate how many cups of coffee an...
Need help with the problems below PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of...
Need help with the problems below
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for...
Can you show the formula or equation for the answers? 2. Based on the break-even...
Can you show the formula or equation for the answers?
2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 70% The estimated fixed costs for the current year are $46,800. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. 3. 12" pizza and 16" pizza for the current year. Assume that the sales mix was 50%...
1. Compute the company’s CM ratio and its break-even point in unit sales and dollar sales....
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The president believes that a $6,400 increase in the
monthly advertising budget, combined with an intensified effort by
the sales staff, will result in an $87,000 increase in monthly
sales. If the president is right, what will be the increase
(decrease) in the company’s monthly net operating income?
3. Refer to the original data. The sales manager is convinced
that a 10% reduction...
1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without...
1. What is the monthly break-even point in unit
sales and in dollar sales?
2. Without resorting to computations, what is
the total contribution margin at the break-even point?
3-a. How many units would have to be sold each
month to earn a target profit of $70,800? Use the formula
method.
3-b. Verify your answer by preparing a
contribution format income statement at the target sales level.
4. Refer to part 3 and now assume that the tax
rate is...
I need help with these problems, please show your work. Break-Even Sales Under Present and Proposed Conditions Batto...
I need help with these problems, please show your
work.
Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 133,600 units at a price of $105 per unit during the current year. Its income statement for the current year is as follows: Sales $14,028,000 4,970,000 Cost of goods sold Gross profit $9,058,000 Expenses Selling expenses $2,485,000 Administrative expenses 1,505,000 Total expenses 3,990,000 Income from operations $5,068,000 The division of costs between fixed and variable is...
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need help with requirement 3B, 4, and 5. Thank you in advance. Exercise 5-18 (Static) Break-Even...
need help with requirement 3B, 4, and 5. Thank you in
advance.
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ONLY NEED PARTS 5 a,b,c to be answered. Thank you. Due to erratic sales of its...
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Due to erratic sales of its sole product-a high-capacity battery for laptop computers--PEM, Inc, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (12,600 units * $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 5 252,000 151200 100, 500 112,800 $ (12,000) Required: 1. Compute the company's CM ratio and its break-even...
Need help with the problems below
PR 19-6A Contribution margin, break-even sales, cost-volume-profit chart, margin of safety, and operating leverage Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as- sumed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates of the costs for...
Can you show the formula or equation for the answers?
2. Based on the break-even sales (units) in part (1), determine the unit sales of both the 70% The estimated fixed costs for the current year are $46,800. Instructions 1. Determine the estimated units of sales of the overall (total) product, E, necessary to reach the break-even point for the current year. 3. 12" pizza and 16" pizza for the current year. Assume that the sales mix was 50%...
1. Compute the company’s CM ratio and its break-even point in
unit sales and dollar sales.
2. The president believes that a $6,400 increase in the
monthly advertising budget, combined with an intensified effort by
the sales staff, will result in an $87,000 increase in monthly
sales. If the president is right, what will be the increase
(decrease) in the company’s monthly net operating income?
3. Refer to the original data. The sales manager is convinced
that a 10% reduction...
1. What is the monthly break-even point in unit
sales and in dollar sales?
2. Without resorting to computations, what is
the total contribution margin at the break-even point?
3-a. How many units would have to be sold each
month to earn a target profit of $70,800? Use the formula
method.
3-b. Verify your answer by preparing a
contribution format income statement at the target sales level.
4. Refer to part 3 and now assume that the tax
rate is...
I need help with these problems, please show your
work.
Break-Even Sales Under Present and Proposed Conditions Battonkill Company, operating at full capacity, sold 133,600 units at a price of $105 per unit during the current year. Its income statement for the current year is as follows: Sales $14,028,000 4,970,000 Cost of goods sold Gross profit $9,058,000 Expenses Selling expenses $2,485,000 Administrative expenses 1,505,000 Total expenses 3,990,000 Income from operations $5,068,000 The division of costs between fixed and variable is...
need help with requirement 3B, 4, and 5. Thank you in
advance.
Exercise 5-18 (Static) Break-Even and Target Profit Analysis; Margin of Safety; CM Ratio (LO5-1, LO5-3, LO5-5, LO5-6, LO5-7) Menlo Company distributes a single product. The company's sales and expenses for last month follow: Per Unit Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 450,000 180,000 270,000 216,000 $ 54,000 $ 30 12 $ 18 Required: 1. What is the monthly break-even point in unit...
ONLY NEED PARTS 5 a,b,c to be answered. Thank you.
Due to erratic sales of its sole product-a high-capacity battery for laptop computers--PEM, Inc, has been experiencing financial difficulty for some time. The company's contribution format income statement for the most recent month is given below. Sales (12,600 units * $20 per unit) Variable expenses Contribution margin Fixed expenses Net operating loss 5 252,000 151200 100, 500 112,800 $ (12,000) Required: 1. Compute the company's CM ratio and its break-even...
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