ABC Company has variable operating cost of $15 per unit and sell price of 22 per...
ABC Company has variable operating cost of $15 per unit and sell price of 22 per unit if company’s operating break-even point is 3000 unit:
-
What is the fixed operating cost?
-
If company produce 500 units what is company’s EBIT?
-
Calculate the degree of operating leverage when company make 4000 units.
Homework Answers
1)
Fixed Operating cost = contribution * Break even point
Contribution = selling price - Variable cost
= 22 - 15
= 7
Fixed Operating cost = 7*3000 = $21,000
2)
EBIT = (sales * contribution) - fixed costs
= (500 * 7) - 21,000
= -$17,500
3)
Degree of operating leverage = contribution / EBIT
contribution = 4000*7 = 28000
EBIT = contribution - fixed costs
= 28,000 - 21,000 = 7,000
DOL = 28,000 / 7,000
= 4
Add Answer to:
ABC Company has variable operating cost of $15 per unit
and sell price of 22 per...
2. ABC Company has variable operating cost of $15 per unit and sell price of $25...
2. ABC Company has variable operating cost of $15 per unit and sell price of $25 per unit if company's operating break-even point is 3000 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 4000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25...
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units. MacBook Pro 8 6 5 E R
Lens Company has variable operating cost of 16 per unit Each of the following question is...
Lens Company has variable operating cost of 16 per unit
Each of the following question is accounted 10 points. Please show the deta work in order to get full credits. 1. Lens Company has variable operating cost of $16 per unit and sell pri of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage...
7.If the variable cost per unit increases by $1, spending on advertising increases by $1,250, and...
7.If the variable cost per unit increases by $1, spending on
advertising increases by $1,250, and unit sales increase by 150
units, what would be the net operating income?
8.What is the break-even point in unit sales?
9.What is the break-even point in dollar sales?
10.How many units must be sold to achieve a target profit of
$8,400?
11.What is the margin of safety in dollars?
12.What is the margin of safety percentage?
13.What is the degree of operating leverage?...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable labour...
ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable labour cost is $2.44 per unit. What is the variable cost per unit? ($3.87) Suppose the firm incurs fixed costs of $650,000 during a year in which total production is 320,000 units. What are the total costs for the year? ($1,888,400) If the selling price is $10 per unit, what is the cash break-even point? If depreciation is $190,000 per year, what is the accounting...
The following information exists for ABC Company: Selling price per unit: $30 Variable expenses per...
The following information exists for ABC Company: Selling price per unit: $30 Variable expenses per unit: $21 Fixed expenses for the period: $60,000 Sales volume in units: 10,000 1. If advertising of $15,000 is spent to increase sales volume by 2,000 units, operating income will increase by ?? 2. Based on the information given above, ABC Company's contribution margin ratio will be ?? ------------------------------------------------------------------------------------------ The following information exists for ABC Company: Selling price per unit = $60 Variable expenses...
Fowler Company produces a product that sells for $200 per unit and has a variable cost...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
2. ABC Company has variable operating cost of $15 per unit and sell price of $25 per unit if company's operating break-even point is 3000 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 4000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units.
1. Lens Company has variable operating cost of $16 per unit and sell price of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage when company make 6000 units. MacBook Pro 8 6 5 E R
Lens Company has variable operating cost of 16 per unit
Each of the following question is accounted 10 points. Please show the deta work in order to get full credits. 1. Lens Company has variable operating cost of $16 per unit and sell pri of $25 per unit if company's operating break-even point is 3500 unit: a) What is the fixed operating cost? b) If company produce 5000 units what is company's EBIT? c) Calculate the degree of operating leverage...
7.If the variable cost per unit increases by $1, spending on
advertising increases by $1,250, and unit sales increase by 150
units, what would be the net operating income?
8.What is the break-even point in unit sales?
9.What is the break-even point in dollar sales?
10.How many units must be sold to achieve a target profit of
$8,400?
11.What is the margin of safety in dollars?
12.What is the margin of safety percentage?
13.What is the degree of operating leverage?...
Chapter 5: Applying Excel Data Unit sales 20,000 units $60 Selling price per unit Variable expenses per unit Fixed expenses per unit $45 per unit $240,000 Enter a formula into each of the cells marked with a ? below Review Problem: CVP Relations hips Compute the CM ratio and variable expense ratio Selling price per unit Variable expenses per unit Contribution margin per unit ? per unit ? per unit ? per unit CM ratio Variable expense ratio ? Compute...
Fowler Company produces a product that sells for $200 per unit and has a variable cost of $125 per unit. Fowler incurs annual fixed costs of $450,000 Required a. Determine the sales volume in units and dollars required to break even. (Do not round intermediate calculations.) b. Calculate the break-even point assuming fixed costs increase to $600,000. (Do not round intermediate calculations.) Answer is not complete. 6,000 $ 1,200,000 Sales volume in units Sales in dollars Break-even units Break-even sales...
Most questions answered within 3 hours.
-
A sample of size 31 will be drawn from a population with mean 39
and standard...
asked 7 minutes ago -
What is the effect on the P-value when a test is changed from a
two-tailed hypothesis...
asked 12 minutes ago -
I wish to estimate µ, the mean of a population. After I collect
and an-
alyze...
asked 40 minutes ago -
At a local university, you poll a group of 115 students and find
that 37 of...
asked 21 minutes ago -
Gladstone company tracks the number of units purchased and sold
throughout each accounting period but applies...
asked 24 minutes ago -
When determining if a molecule's configuration is E or Z, what
determines the higher priority groups?
asked 28 minutes ago -
13. What is the amount
of conversion cost transferred to finished goods? (Round
your intermediate calculations...
asked 30 minutes ago -
Sulfuric Acid is a "strong" acid, but only releases a single
proton when it dissolves. What...
asked 30 minutes ago -
The
second floor of a house is 6 m above the street level. How much
work...
asked 32 minutes ago -
What uncontrollable factor(s) contributed to Hong Kong Disney’s
poor performance during its first year?
asked 34 minutes ago -
You are interested in whether students that have a male
instructors perform differently on exams. To...
asked 46 minutes ago -
Discuss the following: The policies that promote economic
growth. Why are some countries more developed than...
asked 42 minutes ago