Homework Answers
Answer
Selling price = 1,000,000 / 100,000 = $10
Variable cost per unit = 700,000 / 100,000 = $7
Contribution margin per unit = selling price - variable cost
Contribution margin per unit = 10 - 7 = $3
Fixed cost = $210,000
1 Break even point in unit = fixed cost / contribution margin per unit
Break even point in unit = 210,000 / 3 = 70,000 units
Boswell company need to sell 70,000 units to break even.
2 units sold to generate desired operating income
= (fixed cost + desired operating income) / contribution margin per unit
Units sold to generate operating income $150,000
= (210,000 + 150,000) / 3 = 120,000 units
The Bidwell company need to sell 120,000 units generate operating income $150,000.
3 new fixed cost = 210,000 + 31,500 = $241,500
Break even point in units = 241,500 / 3 = 80,500 units
The new break even point in unit is 80,500.
The above are the detailed calculations of 3 different scenarios.
If YOU are like the answer please upvote.
Add Answer to:
2 Bidwell Company Units 100,000 Revenue 1,000,000 Costs Fixed Variable Raw Material 300,000 Direct Labor 200,000...
Part 2. Gayle and Joy are concerned that the estimated fixed costs are too low. They believe that they’ll nee...
Part 2. Gayle and Joy are concerned
that the estimated fixed costs are too low. They believe that
they’ll need additional equipment, increasing their fixed costs by
$ 31,500. Also, there has been a change in the corporate tax rate.
Find the new 2018 corporate tax rate and properly cite your source
(Links to an external site.). Adjust your analysis to assume an
increase of $31,500 in fixed costs and the new corporate income tax
rate.
Prepare a schedule summarizing the...
Assume the unit contribution margin is $10. Sales are $1,000,000, variable costs are $200,000 and fixed...
Assume the unit contribution margin is $10. Sales are $1,000,000, variable costs are $200,000 and fixed costs are $700,000. How many units must be sold to earn a profit of $100,000? a. 80,000 b. 10,000 c. 90,000 d. 100.000
Quali-Rags has fixed costs of $300,000, sells its units for $75, and has variable costs of...
Quali-Rags has fixed costs of $300,000, sells its units for $75, and has variable costs of $50 per unit. Compute the break-even point in units. a. An analyst comes up with a new plan to cut fixed costs to $250,000. However, more raw material will now be required, which will increase variable costs per unit to $59. The sales price will remain at $75. What is the new break-even point in units b. c. Quali-Rags management likes the new plan,...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
5. Below is an income statement for Jean Simmons Company:Sales$300,000 Variable costs(150,000)Contribution margin$150,000 Fixed costs(100,000)Profit before...
5. Below is an income statement for Jean Simmons Company:Sales$300,000 Variable costs(150,000)Contribution margin$150,000 Fixed costs(100,000)Profit before taxes$ 50,000 1) What was the company's margin of safety in dollars?2) If the unit sales price for Jean Simmons’s sole product was $10, how many units would it have needed to sell to produce a profit of $40,000?
Solar Salt Company has two divisions. Sales, direct materials cost, and direct labor cost data for...
Solar Salt Company has two divisions. Sales, direct materials cost, and direct labor cost data for Solar Salt's two divisions are not available. However, manufacturing overhead and gross profit data for the two divisions are available, as follows Agricultural Products Retail Products Manufacturing overhead $450,000 $250,000 Gross profit 150,000 100,000 *Manufacturing overhead is allocated to production based on the amount of direct labor cost. Solar Salt has determined that its total manufacturing overhead cost of $700,000 is a mixture of...
Cooper Company sells a product at $50 per unit that has unit variable costs of $20....
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
Alloy has annual fixed operating costs of $200,000 and variable costs of $400 per camper. Total...
Alloy has annual fixed operating costs of $200,000 and variable costs of $400 per camper. Total fees charged to campers amount to $600 each. The camp expects 400 campers next summer. Projected government grants are $100,000. How much must Alloy raise from other sources to break even? $50,000 $30,000 $60,000 O $20,000
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs...
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
The large factory would have fixed cash costs of $1.8 million and a depreciation expense of $300,000 per year
Ivanhoe's Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Each candle will be sold for $10. If the large factory is chosen, the cost per unit to produce each candle will be $3.00. The cost per unit will be $7.50 in the small factory. The large...
Part 2. Gayle and Joy are concerned
that the estimated fixed costs are too low. They believe that
they’ll need additional equipment, increasing their fixed costs by
$ 31,500. Also, there has been a change in the corporate tax rate.
Find the new 2018 corporate tax rate and properly cite your source
(Links to an external site.). Adjust your analysis to assume an
increase of $31,500 in fixed costs and the new corporate income tax
rate.
Prepare a schedule summarizing the...
Quali-Rags has fixed costs of $300,000, sells its units for $75, and has variable costs of $50 per unit. Compute the break-even point in units. a. An analyst comes up with a new plan to cut fixed costs to $250,000. However, more raw material will now be required, which will increase variable costs per unit to $59. The sales price will remain at $75. What is the new break-even point in units b. c. Quali-Rags management likes the new plan,...
Sales (100,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income $1.000.000 300.000 700,000 200,000 500.000 75.000 425.000 127,500 $297,500 Refer to the table. The degree of operating leverage S Select one: O a. 1.56x Ob.3.33% O c. 2.22% O d. 1.40x Sales (1,000 units) Variable costs Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30°) Net Income Shares Outstanding $200,000 110,000 90,000 40.000 50.000 10,000 40,000...
Solar Salt Company has two divisions. Sales, direct materials cost, and direct labor cost data for Solar Salt's two divisions are not available. However, manufacturing overhead and gross profit data for the two divisions are available, as follows Agricultural Products Retail Products Manufacturing overhead $450,000 $250,000 Gross profit 150,000 100,000 *Manufacturing overhead is allocated to production based on the amount of direct labor cost. Solar Salt has determined that its total manufacturing overhead cost of $700,000 is a mixture of...
Cooper Company sells a product at $50 per unit that has unit variable costs of $20. The company's break-even sales point in sales dollars is $150,000. How much is the fixed costs now? (Hint: The fixed costs is same as the total contribution margin when there is break-even.) Select one: O a. $200,000 O b. $100,000 O c. $90,000 O d. $120,000 Zeus, Inc. produces a product that has a variable cost of $3.00 per unit. The company's fixed costs...
Alloy has annual fixed operating costs of $200,000 and variable costs of $400 per camper. Total fees charged to campers amount to $600 each. The camp expects 400 campers next summer. Projected government grants are $100,000. How much must Alloy raise from other sources to break even? $50,000 $30,000 $60,000 O $20,000
21 A company has the following costs when producing 100,000 units: Variable costs $480,000 Fixed costs $700,000 A supplier is interested in producing the item. If the item is produced outside, the company could use the released production facilities to make another item that would generate $110,000 of net income. The fixed costs are unavoidable. At which unit price should the company accept the supplier's ofer? $5.70 e $7.00 O $8.90 NEXT > BOOKMARK CLEAR
Most questions answered within 3 hours.
-
Refer to the following lease amortization schedule. The 10
payments are made annually starting with the...
asked 6 minutes ago -
Explain how God fits into Aquinas' theory of happiness.
asked 13 minutes ago -
1.1 With aid of diagrams and suitable examples discuss
the economic effects of price controls.
1.2...
asked 18 minutes ago -
When the nuclide polonium-214 undergoes alpha
decay:
The name of the product nuclide is .
The...
asked 32 minutes ago -
Q. The market demand function is D(Pd) = 160 - 2Pd and the
market supply function...
asked 37 minutes ago -
An unknown alcohol is analyzed by freezing point depression. The
unknown is either methanol (CH3OH), ethanol...
asked 38 minutes ago -
As a person inhales, air moves down the windpipe (bronchus),
through a constriction where the air...
asked 40 minutes ago -
Youngchang Keyboard sells a $1400 keyboard on a monthly payment
plan over 2 years.
a) If...
asked 47 minutes ago -
For a one step reaction, the activation energy for the
forward reaction is 40.0 kJ mol-1,...
asked 50 minutes ago -
1. A good thesis statement _____ .
is limited but not too narrow
is very broad...
asked 45 minutes ago -
What is the main use of a transistor and what is an Integrated
Circuit?
asked 52 minutes ago -
Intro to Java Programming
Write a method named isDivisible that takes two integers, n
and m,...
asked 51 minutes ago