Operating Breakeven Point = Fixed Cost / [Sales Price - Variable operating cost]
a). Operating Breakeven Point for company F = $40,000 / [$17.17 - $6.14]
= $40,000 / $11.03 = 3,626
Operating Breakeven Point for company G = $28,000 / [$16.16 - $13.37]
= $28,000 / $2.79 = 10,036
Operating Breakeven Point for company H = $84,000 / [$27.24 - $12.05]
= $84,000 / $15.19 = 5,530
b). The higher the operating cost, the higher the risk will be. The firms ranked by level of risk are as follow:
Highest Risk Level = Firm H
Moderate Risk Level = Firm F
Lowest Risk Level = Firm G
Breakeven comparisons-Algebraic Given the price and cost data shown in the accompanying table for each of...
Firm Breakeven comparisons--- Algebraic Given the price and cost data shown in the accompanying table for each of the three firms, F. G and H (Click on the icon here in order to copy the contents of the datatable below into a spreadsheet.) F G H Sale price per unit $13.78 $18.07 S2528 Variable operating cost per unit 7.12 13.34 12 29 Fived operating cost 42.000 35.000 95,000 a. What is the operating breakeven point in units for each firm?...
Given the price and cost data shown in the accompanying table for each of the three firms, F, G, and H: Firm F G H Sale price per unit $$20.23 $$18.06 $$34.42 Variable operating cost per unit 6.91 13.79 12.48 Fixed operating cost 41,000 33,000 95,000 a. What is the operating breakeven point in units for each firm? b. How would you rank these firms in terms of their risk?
I have posted the data table which is the first picture
i Data Table Company Cloudy Windy Sunny S 1,300,000 Rainy $ (d) 693,000 S 0) Net Sales Revenue Variable Costs Fixed Costs Operating Income (Loss) 166,000 Units Sold Contribution Margin per Unit $ Contribution Margin Ratio (a) 144,000 346,500 374,400 (b) 203,000 270,000 $ (e) S (g) $87,200 130,000 12,000 4.00 S (f) S77.00 $ 18.00 70% 20% Print Done Requirement 1. Fill in the blanks operating loss.) for...
BOOK Calculator Print Item Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Unless otherwise instructed, round all total dollar figures (e.g. sales, total contribution margin) to the nearest dollar, breakeven or target units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits. Required: 1. At the break-even point, Jefferson Company sells 115,000 units...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has fixed cost of $353,000. The variable cost per unit is $0.45. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $111 and has fixed cost of $414,000. Next year, Sooner expects to sell...
000 Requirements $ 1. Fill in the blanks for each missing value. (Round the contribution margin per unit to the nearest cent.) $ 2. Which company has the lowest breakeven point in sales dollars? 3. What causes the low breakeven point? Print Done i - X Data Table Company Blue Red Green Yellow Net Sales Revenue $ 2,625,000 (d) $ 355,000 Variable Costs (a) 84,000 213,000 182,000 Fixed Costs (b) 208,000 228,000 (k) Operating Income (Loss) $ 344,800 $ (e)...
Price, Variable Cost per Unit, Contribution Margin, Contribution Margin Ratio, Fixed Expense For each of the following independent situations, calculate the amount(s) required. Required: 1. At the break-even point, Jefferson Company sells 135,000 units and has foed cost of $350,600. The variable cost per unit is $0.40. What price does Jefferson charge per unit? Note: Round to the nearest cent. 2. Sooner Industries charges a price of $115 and has fixed cost of $459,500. Next year, Sooner expects to sell...
Table (a) shows the cost data for Farmer Mill, a barley farmer. Round your answers to 2 decimal places. a) Complete table (a). Total Cost ($) Variable Cost ($) Recage Total Cost ($) Marginal Cost ($) Quartity Recage Variable Cost ($) 1 14 18 10 16 46 60 b) What are the values of the break-even and shutdown prices? Round your answer to 2 decimal places. Break-even price: $ 8 Shutdown price: $ c) Given the prices shown in column...
Break-even Point Schweser Satellites Inc. produces satellite earth stations that sell for $95,000 each. The firm's fixed costs, F, are $2.5 million, 50 earth stations are produced and sold each year, profits total $600,000, and the firm's assets (all equity financed) are $4 million. The firm estimates that it can change its production process, adding $4.5 million to assets and $300,000 to fixed operating costs. This change will reduce variable costs per unit by $12,000 and increase output by 18...
SpeedCo. Manufacturing manufactures 16 GB flash drives (jump drives). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Sales price per unit:(current monthly sales volume is 110,000 units) $25.00 Variable costs per unit: Direct materials $7.60 Direct labor. . $6.00 Variable manufacturing overhead. $4.40 Variable selling and administrative expenses $3.00 Monthly fixed expenses: Fixed manufacturing overhead. $111,600 Fixed selling and administrative expenses $167,400 1. What is the company's contribution margin per unit?...