Homework Answers
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A) Contribution margin per unit = Sales price per unit - Variable cost per unit = 39 - 15 = 24 per unit Volume Breakeven point = Fixed cost/Contribution margin per unit = 850,000/24 = 35,417 units |
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B) Contribution margin ratio = Contribution margin per unit/Sales price per unit = 24/39 = 61.54% Revenue Breakeven point = Fixed cost/Contribution margin ratio = 850,000/61.54% = $1,381,215 |
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Part 1: Break-Even Analysis (Profit Model) Kramerica Industries has successfully completed production of its "tip calculators"...
3 4 5 b Delete { Y U Р 0 т T E R S Part...
3 4 5 b Delete { Y U Р 0 т T E R S Part 2: Break-Even Analysis (Multiproduct Model) West Side Deli is a local family-owned restaurant that has built up a reputation of providing high quality lunches to its customers. Cassandra has been able to effective use the multiprod- uct Break-Even analysis to analyze the deli's current product offerings, and now wants to plan for a future addition: cupcakes! After reviewing the most recent product financials and...
please explain Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9...
please explain
Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9 Pg Up Enter 5 6 (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE: The Excel spreadsheet can be very useful for this part as it performs many of these calcu- lations.) - (15 points). In other words: a. What types of recommendations would you make to Kramerica if the expected number of calculator sales is 32,000 over...
break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...
break-even analysis
ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
Company use absorption costs approach for its sales and cost analysis what is break even point/revenue?...
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Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations...
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Required information Problem 7-45 Break-Even Analysis: Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc....
Required information Problem 7-45 Break-Even Analysis: Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc. owns and operates a nationwide chain of movie theaters. The 500 properties in the Silver Screen chain vary from low-volume, small-town, single-screen theaters to high-volume, urban, multiscreen theaters. The firm's management is considering installing popcorn machines, which would allow the theaters to sell freshly popped corn rather than prepopped com. This new feature would be advertised to increase patronage at the company's theaters. The...
1. CVP Analysis; Break-even point, margin of safety: Davies’ Violins, Ltd, produces and sells a single...
1. CVP Analysis; Break-even point, margin of safety: Davies’ Violins, Ltd, produces and sells a single product, violins, whose selling price is $325.00 per unit and whose variable cost is $98.00 per unit. The company's fixed expense is $47,300 per month. The current volume of sales is 350 violins per month. Determine the monthly total contribution margin at the current volume of sales. Determine the monthly net income (loss) at the current volume of sales. Determine the monthly break-even point:...
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(Using break-even analysis) Mayborn Enterprises, LLC runs a number of sporting goods businesses and is currently analyzing a new T-shirt printing business. Specifically, the company is evaluating the feasibility of this business based on its estimates of the unit sales, price per unit, variable cost per unit, and fixed costs. The company's initial estimates of annual sales and other critical variables are shown here: LOADING... . a. Calculate the accounting and cash break-even annual sales volume in units. b. Bill...
4. Break-even analysis To be profitable, a firm has recover its costs. These costs include both...
4. Break-even analysis To be profitable, a firm has recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Petrox Oil Co.: Petrox Oil Co. is considering a project that will have fixed costs of $10,000,000. The...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The...
3 4 5 b Delete { Y U Р 0 т T E R S Part 2: Break-Even Analysis (Multiproduct Model) West Side Deli is a local family-owned restaurant that has built up a reputation of providing high quality lunches to its customers. Cassandra has been able to effective use the multiprod- uct Break-Even analysis to analyze the deli's current product offerings, and now wants to plan for a future addition: cupcakes! After reviewing the most recent product financials and...
please explain
Lock P { [ Delete ] End Pg Dn 7 Home 8 1 9 Pg Up Enter 5 6 (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE: The Excel spreadsheet can be very useful for this part as it performs many of these calcu- lations.) - (15 points). In other words: a. What types of recommendations would you make to Kramerica if the expected number of calculator sales is 32,000 over...
break-even analysis
ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
Chapter 3 - Journal Cost-Volume-Profit Analysis Break Even Analysis Break Even is the level of operations where Profit equals zero. EXERCISE 1: Abner Corporation makes a product that sells for $200 per unit. The Variable Costs per unit are $120. Fixed Costs total $500,000 each year. Abner currently sells 7,500 units per year. Calculate the number of units that Abner must sell to break even. Use the equation method to solve for the number of units Abner needs to sell...
Required information Problem 7-45 Break-Even Analysis: Profit-Volume Graph; Movie Theaters (LO 7-1,7-3, 7-4) Silver Screen Inc. owns and operates a nationwide chain of movie theaters. The 500 properties in the Silver Screen chain vary from low-volume, small-town, single-screen theaters to high-volume, urban, multiscreen theaters. The firm's management is considering installing popcorn machines, which would allow the theaters to sell freshly popped corn rather than prepopped com. This new feature would be advertised to increase patronage at the company's theaters. The...
1. Break-even analysis To be profitable, a firm must recover its costs. These costs include both its fixed and its variable costs. One way that a firm evaluates at what stage it would recover the invested costs is to calculate how many units or how much in dollar sales is necessary for the firm to earn a profit. Consider the case of Blue Mouse Manufacturers: Blue Mouse Manufacturers is considering a project that will have fixed costs of $12,000,000. The...
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